I own a logistics company. I need a loan to expand my business. My company was established in Feb 2013. I do not have any FD or any security To Provide. I require a loan of around Rs. 5-10 lakh. Is there any scheme for young entrepreneurs or start up companies?
You can opt for Loan Facilitation and Syndication Service from SIDBI, since it helps in providing financial assistance for small and medium enterprises. Go to SIDBI.com and fill in the online enquiry form to avail loan.
You can also check with Reliance Commercial. I heard they give SME loans with hassle free documentation.
Business loans in India can be availed in the range of Rs.50,000 and up to Rs. 75 lakhs. These loan applications usually get approved fairly quickly and without any hassle during processing. Most banks and financial institutions provide their customers with the promise of secured lending solutions when it comes to business loans. Business loans come with the added benefit of services, such as, SMS, web Chat, phone banking, etc. Some banks even extend exclusive higher loan amounts to their self-employed customer base.
With minimal paperwork and flexible repayment options, more and more business owners are leaning on business loans to fund their business needs.
Unsecured business loans are provided without you having to provide any collateral or asset. They are made strictly on the basis of your credit score and rating and some other methods the financial institution might use to determine your creditworthiness. They by default carry a greater risk to the lender because they are unsecured in nature. Hence they inherently have a higher rate of interest than secured loans and are also more difficult to obtain. Most lenders require an exceptional credit rating, no bad remarks on your credit report, and some even require that you should have been in business for at least 2 years. Therefore, the unsecured business loan works best for established business borrowers with excellent credit history. They are not ideal for start-up funds or if you have a less-than-exceptional credit score.
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Yes you can apply for unsecured business loan if you not having security to provide. There are NBFC like Lendingkart finance offering business loan at best interest rates.
I’m a newbie here. I would like to know how to get business loan?
You can apply for a Business Loan online. In order to apply for a Business Loan, you will require the following documents-
PAN Card of the company, firm or individual
Proof of ID, in the form of, copy of Aadhaar Card, Passport copy, Voter’s ID copy, driving license.
Proof of address, in the form of, copy of Aadhaar Card, Passport copy, Voter’s ID copy, driving license.
Bank statement (last 6 months)
Latest ITR along with computation of income, balance sheet and P&L account for the last 2 years. All financials must be CA certified or audited.
Proof of continuation (ITR/Trade License/Establishment/Sales Tax Certificate)
Sole Proprietorship Declaration or certified copy of Partnership Deed
Certified true copy of Memorandum and Articles of Association
Click here to apply for a Business Loan.
Thanks for your reply and details. I’m from Bangladesh. Can I apply for the online loan?
You can get a loan if you are starting a business in India. The process to apply for a Business Loan is the same for NRIs as for resident Indians with only a few differences.
The first difference is, banks might ask NRIs to submit their graduation and post-graduation certificates to process the loan application. This requirement is not mandatory for resident Indians. Secondly, as an NRI you must meet the minimum overseas work experience requirement of your chosen bank to get a Business Loan. The minimum requirement is often one year but it can vary with each bank. It’s always good to check. A third requirement could be meeting the minimum income requirement. This will again vary with banks.
When compared to a resident Indians, NRIs have to submit additional documents to get a Business Loan. These include a copy of the passport and work visa, address proof of the overseas address, letter of appointment, work visa, salary and NRE/NRO account statements etc.
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oh, glad to get your reply. Basically, I am not from India. I’m from Bangladesh. May I eligible for the loan? Please confirm this.