What is a Business Loan?
A business loan provides financial assistance to entrepreneurs for starting, expanding, or managing business operations. These loans can be used for purchasing equipment, working capital, hiring, or expansion.
Types of Business Loans
Term loans provide lump sum repaid over fixed period. Working capital loans manage daily expenses. Equipment financing is for machinery. MSME loans offer favorable terms for micro, small and medium enterprises.
Government Schemes
PM Mudra Yojana offers loans up to Rs. 10 lakh in three categories. Stand-Up India provides loans between Rs. 10 lakh and Rs. 1 crore to SC/ST and women entrepreneurs. CGTMSE provides collateral-free loans up to Rs. 2 crore.
Eligibility
Business should be at least 1-2 years old with minimum annual turnover. You need business registration documents, financial statements, bank statements, GST returns, and a business plan.
Application Process
Research multiple banks and NBFCs, prepare documentation, submit application online or at branch. Approval takes 3-7 business days typically.