What kinds of financing are available for small businesses?

There are multiple financial options available for small businesses. Some of them are: Term loan Start-up loan Term Loan Working capital loan Merchant cash advance Equipment Financing Depending on the type of loan you require, you can choose the most relevant financial option.

What do I need to submit with my loan application for a small business?

The documents needed along with your loan application for a small business loan usually consist of the following: Proof of age Identity proof Valid address proof Financial statements Loan history Business registration proof Business overview document

Apply for Small Business Loan Online up to ₹90 Lakhs*

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Get Small Business Loan Up to ₹90 Lakhs*

Just like large enterprises, small businesses such as local Kirana stores, electronic repair shops, bakeries, and clothing stores too need funding from time to time. In maximum cases, such businesses require short-term finances to fulfill their urgent cashflow requirements, which can include paying wages to staff, making payments to vendors, or upgrading workplace infrastructure.

Tata Capital’s small business loans are tailor-made loans to help micro and small businesses in India meet their urgent monetary requirements. We provide affordable loan for small business in India with easy eligibility criteria and minimal documentation. You can apply for a new small business loan online and get the funding from the comforts of your home or office.

Loan Amount

₹ 1 Lakh to ₹ 90 Lakhs

Loan Tenure

12 months to 60 months

Interest rate starting @

Starting from 12% p.a.* (This may vary depending on the product and profile).

View Rates & Charges

Small Business Loan EMI Calculator

A business loan EMI calculator is an online tool that helps you determine the amount you will need to pay monthly for repayment of your business loan. Tata Capital’s Business Loan EMI Calculator is incredibly quick and easy to use. You can simply enter the required values in the relevant boxes, and our EMI calculator business loan will instantly display your business loan EMI and the total interest amount payable on your business loan. By knowing your business loan EMI in advance, you can manage your expenses and plan your repayments accordingly.

Loan amount

₹

₹75,000 ₹35,00,000

Loan duration

1 Years 6 Years

Rate of interest

10% p.a 19% p.a

Monthly EMI

Total Amount Payable

0*
Total Interest Payable

0*

Total Amount Payable

Total Interest Payable

Apply Now

Avail TATA Capital loans directly from WhatsApp

Apply via WhatsApp

Features and Benefits of Tata Capital Small Business Loans

Convenient Loan Amount

By applying for a small business loan with us, you can get small business financing of up to Rs. 1.5 lakhs. You can choose your small business funding amount as per your precise business requirements. We provide small business loans for women as well as men entrepreneurs.

Flexible Loan Tenure

Our loan for small business comes with a flexible tenure of up to 36 months. It means that you have the flexibility to choose your loan tenure as per your repayment capability. A higher loan tenure will reduce your monthly EMI but increases your interest outgo.

Easy Eligibility

With Tata Capital, you can get a loan to start a small business or expand your existing business by fulfilling easy eligibility criteria and minimum documentation. Additionally, our loan for small business is approved and disbursed faster to provide you with on-time small business financing.

No Collateral Required

Our business loans for small businesses are 100% collateral-free loans. It means that you are not required to put any of your personal or business assets on the line to qualify for your small business funding.

Doorstep Services

To avail of a loan for small scale business with Tata Capital, you won’t have to step out of your home or office. We provide small business loans online along with doorstep services for document collection and other formalities.

Who Can Apply for Small Business Loans?

We provide small business loan in India to anyone who can fulfill our business loan eligibility criteria. Below is a list of businesses or customers who can apply for a loan for small business with us:

Self-employed individuals
Sole proprietor small enterprises consisting of manufacturers, retail and wholesale trade and services customers

Small Business Loan Eligibility Criteria

At Tata Capital, we provide loans for small businesses with easy eligibility criteria and minimum documentation. Below are the eligibility requirements you need to fulfill to avail of our small business loan:

Your age should be between 21 years and 60 years (at the time of last EMI)

You should have a business vintage of at least two years

Your business turnover should indicate an upward trend

Please note that our small business loan eligibility criteria may include some other parameters as well.

Factors That Affect Small Business Loan Eligibility

Here are key factors affecting your eligibility for business loans for small businesses:

Location: Your business location influences loan approval, as lenders assess regional economic conditions and market viability.
Business Vintage: Lenders prefer businesses operating for at least 2-3 years in the same line, demonstrating income stability and a proven business model.
Business Income and Turnover: Higher annual turnover qualifies you for larger loan amounts.
Credit History and Score: This has the largest impact on small loans for small business eligibility. A score above 750 significantly improves approval chances.
Business Banking Hygiene: Healthy transactions in your business bank account, maintained balances, and regular deposits reflect financial discipline and positively impact your small business lending eligibility.
Business Premise Ownership: If you own your residence or business property, it increases credibility and demonstrates asset stability to lenders.

Factors That Impact Interest Rates on Small Business Loans

Before exploring instant small business loans, it's essential to understand how lenders determine interest rates.

Several factors influence small business financing rates, such as:

Business Income Levels: Your annual revenue directly impacts the rates offered. Businesses generating higher incomes typically qualify for more competitive rates. Conversely, lower-income businesses may face higher interest charges due to perceived risk.

Industry and Business Type: The sector you operate in matters significantly. Businesses in stable industries with healthy profit margins are favoured by lenders, often receiving best small business financing terms.

Credit Bureau Score: Your business entity's credit score, or your personal score in case of proprietorships, also plays a critical role. A strong bureau score improves eligibility for instant small business loans and unlocks better interest rates and higher loan amounts.

Tips to Reduce Interest Rates on Small Business Loans

1. Strengthen Your Credit Profile: A strong credit profile can make you eligible for lower small business financing rates. Review your credit report before applying and correct any errors that may negatively impact your score.

2. Compare Multiple Loan Offers: Interest rates can vary widely across lenders. Comparing offers from different lenders offering instant small business loans allows you to identify the most cost-effective option.

3. Negotiate with Lenders: If your business has stable revenue, strong lending history, or successful repayment records, leverage these to negotiate better rates. Existing lending relationships can unlock preferential small business financing rates.

4. Choose a Shorter Loan Tenure: If your cash flow allows, opting for a shorter repayment period can help you secure more favourable interest rates for startup business loans.

Key Points to Consider Before Applying for a Small Business Loan

Before proceeding with your loan application for small business, here are some things you must do:

Assess your loan requirement carefully before you apply for a small business loan to avoid unnecessary debt.
Check eligibility criteria set by some of the best small business lenders to improve approval chances.
Evaluate your repayment capacity to manage EMIs comfortably for instant small business loans.
Compare interest rates, processing fees, and hidden charges across lenders.
Ensure accurate documentation to avoid delays in your small business loan application process.

Documents Required for Small Business Loan

To apply for a small business loan, you must produce the following documents:

Duly filled loan application form
Business KYC
Last 6 months' business and individual (proprietors/partners) bank statements.
Additional Read: Check here what are the documents required for business loan.

Why Should You Choose Tata Capital’s Small Business Loans?

With Tata Capital, you can get a loan for small business in India without any hassles. Here are a few reasons why you should choose to apply for our small business loan:

Manage Your Working Capital

Every business, irrespective of its size and nature, needs working capital to manage its day-to-day operations. For small business owners, getting access to timely working capital is even more crucial as they are in their growth cycles. Tata Capital provides loan for small scale businesses so that they can meet their short-term working capital requirements with minimum fuss.

Business Loan Interest Rates and Charges

At Tata Capital, we provide small business loans for women with attractive interest rates and minimum eligibility requirements. So, as a women entrepreneur, you can apply for our loan for small business and get adequate business funding to meet all your short-term requirements. We offer loans for small businesses up to Rs 1.5 lakhs.

Business Expansion

If you’re looking to expand your existing small business, there can be no better companion than Tata Capital’s small business loan. You can take a loan to start a small business or expand your existing business to greater heights. We provide one of the best small business loans in India with highly competitive interest rates and extended loan tenures.

Tackle Seasonal Cashflow Requirements

If you’re into a seasonal business - for example, a fire-cracker seller, a dry fruit shop, a bridal collection store, etc. - your cashflow requirements during peak season can suddenly go up. During such times, you can avail of a small business loan in India to meet your urgent cash flow needs easily. You can then repay the loan amount in easy EMIs over a convenient tenure.

How to Apply for a Tata Capital Small Business Loan?

Branch

You can visit your nearest Tata Capital branch and get in touch with one of our executives there. They will guide you through the entire application process

Locate a Branch

Online

Apply online through our website and get your loan approval instantly

Apply Now

Virtual Assistant

Take the help of our 24x7 virtual assistant to apply anytime and from anywhere

Phone Call

Call us on our customer care number at 1860 267 6060 between 9 am and 8 pm on Monday to Saturday to apply through your mobile phone. You can also request a call-back

Request a call back

How to Use a Small Business Loan from Tata Capital?

After receiving your application for a small business loan, we will start a verification process. Upon successful verification, the loan amount will be transferred to your bank account. Now, what next?.
How you choose to spend your startup loan will have a big impact on your business. It’s imperative to have a strategic plan to put your business funding to work. Here are a few ideas on how you can use a small business loan:

Procure Inventory

Certain small businesses, such as retail departmental stores, count on the sales of their inventory to generate profits. They need to keep their inventory full all the time so that they do not lose their potential customers. This can range from the latest beauty products to stationery items to groceries. A start-up business loan can help such business owners immensely to stock their shelves with adequate inventory and also take advantage of bulk discounts.

Upgrade Machinery or Equipment

If you are in a manufacturing or processing business, you rely heavily on certain machinery and equipment for daily production. Sometimes, you may need to replace old machines in your factory with the latest and updated ones to ensure optimum business efficiency. Those in the logistics business may need to expand the size of their fleet or replace existing vehicles with more efficient models. One of the best ways to procure business equipment is by using a start-up business loan.

Meet Day-To-Day Expenses

As a small business owner, you know that every venture requires certain expenses for its day-to-day operations. These may include electricity bills, office rent, labor charges, vendor payments, staff payments, etc. You can use your small business loans for startups to meet such recurring business expenses. This financing option can be a boon for you when you need additional working capital to tackle seasonal fluctuations. Tata Capital offers short-term working capital loans of up to Rs. 1.5 lakhs.

Consolidate Your Debt

You might have taken a personal loan or used your credit card to meet some urgent business-related financial requirements. However, such financing avenues often attract higher interest rates that can go up to 30% per annum. To reduce your borrowing costs, you can use a small business loan for debt consolidation. Tata Capital’s start-up loans come with highly competitive interest rates, starting from just 12% per annum. Additionally, we offer small business loans for women entrepreneurs at special rates.

Invest in Marketing

To grow a business, it’s necessary to enchant new customers and keep existing customers on the hook. For this, you may need to place your business advertisements in print media and social media, send e-mails, participate in events, and do much more. You may also need to hire proficient marketing professionals or agency services that can derive an efficient marketing strategy for your business. With a startup loan, you can expand your marketing budget and take your business to soaring heights.

More Business Loan products for you

Business Loan for professionals

At Tata Capital, we provide business loans for professionals with benefits like easy eligibility criteria, minimum documentation, and quick disbursals.

Apply Now

Business Loan for women

At Tata Capital, we provide business loans for women entrepreneurs to achieve new heights in the world of business and startups.

Apply Now

What our customers say about us

Whole process was done very smoothly. Team was very supportive, polite and knowledgeable

ADENIUM PHARMACEUTICALS

Business Loan | 22 Oct, 2025

I'm really happy with all the efforts you guys made to sort out my problems. Thank you

LIMNESH V V N

Business Loan | 16 Oct, 2025

The Tata Capital team guided me very well. All my questions were answered promptly and politely. I am very satisfied with their response and quick action.

SURAJ SANJAY MANE

Business Loan | 12 Sep, 2025

Thank you from the bottom of my heart for the help from Tata Capital. Thank you for your very good service.

SHIV KUMAR .

Business Loan | 26 Aug, 2025

Tata Capital has given me good service for my urgency and helped me. Thank you.

J M NARASIMHAMURTHY

Business Loan | 20 Aug, 2025

Thank you so much for your awesome support. I was in an emergency situation, so I couldn’t attend the calls, but you addressed my problem via mail.

BABEETHA T

Business Loan | 08 Aug, 2025

Nice communication, no delay. Happy to apply for the loan.

ARIVANNAL S

Business Loan | 24 Jul, 2025

Overall satisfied with Tata Capital services. Quick resolution and courteous customer support.

ANWARULLAH NOORULLAH KHAN

Business Loan | 16 Jul, 2025

I am happy to refer Tata always. People will be satisfied and benefit. Always GREAT in all ways, helping poor people.

D KARUNANITHI

Business Loan | 03 Jul, 2025

Read All

FAQs on Loan on Small Business

The duration of the small business loan depends on your eligibility to pay back the same. However, they are available from 12 months to a maximum of 48 months generally.

The answer depends on your definition of ‘poor’. Generally, the higher the credit score, the more chances you have of getting a small business loan. However, you might be able to get a loan at a higher interest rate.

The terms and eligibility criteria for a small business loan are usually the following:

Minimum age of 21 - 24 years

Having a solid business credit profile

Updated financial statements

The intent of your business loan

Small business loan interest rates vary greatly from lender to lender. The best method to choose an interest rate is to check all the conditions before confirming your choice with the lender.

There are multiple financial options available for small businesses. Some of them are:

Term loan
Start-up loan
Term Loan
Working capital loan
Merchant cash advance
Equipment Financing

Depending on the type of loan you require, you can choose the most relevant financial option.

To support women entrepreneurs there are several ways for them to get a small business loan. One of them is getting an exclusive business loan for women that offers flexibility in loan amounts, discounts on rates and quick disbursement.

The documents needed along with your loan application for a small business loan usually consist of the following:

Proof of age
Identity proof
Valid address proof
Financial statements
Loan history
Business registration proof
Business overview document

Before applying for a business loan, individuals and businesses must ensure they meet the required criteria to qualify for one. These include the following list:

Age of the applicant
Minimum turnover as set by the lender
Minimum time of operation of the business

If someone is unable to repay a business loan, they will find their credit scores taking a huge hit. In worst-case scenarios, they will even find their assets being taken over by the lender. Thus, it’s a good idea to determine how much you need before applying for a loan.

If you are a sole proprietor of the business, then a small business loan will affect your credit score. Failing to pay your dues on time can have adverse effects on your score, so it’s best to research how much you need.

To be eligible for a small business loan, a person must be at least 21 years old with a business vintage of at least two years and an upward business turnover trend.

Yes, you can get a loan to start a new business. However, you must have a strong credit history, adequate repayment capability, and a solid business plan.

Small business loans can be approved and disbursed within a few days when your eligibility criteria, documentation, and credit profile meet lender requirements.

No, Tata Capital offers collateral-free small business loans of up to ₹90 lakh, allowing you to fund your startup without pledging any asset.

If you’re applying for a business loan as a fresher and want to start a new business, you need to have a strong credit history, a practical business plan, and demonstrated repayment capacity through income proof.

To improve the chances of loan approval for your startup, prepare a detailed business plan with financial projections, maintain a good credit score, and show consistent income sources.

Find the right Loan for you

Machinery Loans

If you’re into a manufacturing business, you may need to install the latest machinery or equipment in your factory.

You can apply for a machinery loan with us to fund the purchase of your business-related tools or equipment.

Know More

MSME Loans

MSMEs are the second-largest employer in India after the agriculture sector.

To help these MSMEs grow and flourish without being affected by financial hurdles, Tata Capital offers MSME loans or SME loans at competitive interest rates.

Know More

Hybrid Term Loan

If you’re unsure of the total loan amount that you may need for your business, you can avail of a Hybrid Term business loan.

With Tata Capital, you can get an Hybrid Term Loan for business of up to Rs. 90 lakhs at an affordable interest rate.

Know More

Small Business Loan

Tata Capital’s small business loans are tailor-made loans to help micro and small businesses in India meet their urgent monetary requirements.

You can apply for a new small business loan online and get the funding from the comforts of your home or office.

Know More

Business Loan Blogs

Business Loan

Free Credit Score

Small Business Loan

Get Small Business Loan Up to ₹90 Lakhs*

Small Business Loan EMI Calculator

Avail TATA Capital loans directly from WhatsApp

Features and Benefits of Tata Capital Small Business Loans

Convenient Loan Amount

Flexible Loan Tenure

Easy Eligibility

No Collateral Required

Doorstep Services

Who Can Apply for Small Business Loans?

Small Business Loan Eligibility Criteria

Factors That Affect Small Business Loan Eligibility

Factors That Impact Interest Rates on Small Business Loans

Tips to Reduce Interest Rates on Small Business Loans

Key Points to Consider Before Applying for a Small Business Loan

Documents Required for Small Business Loan

Why Should You Choose Tata Capital’s Small Business Loans?

Manage Your Working Capital

Business Loan Interest Rates and Charges

Business Expansion

Tackle Seasonal Cashflow Requirements

How to Apply for a Tata Capital Small Business Loan?

Branch

Online

Virtual Assistant

Phone Call

How to Use a Small Business Loan from Tata Capital?

Procure Inventory

Upgrade Machinery or Equipment

Meet Day-To-Day Expenses

Consolidate Your Debt

Invest in Marketing

More Business Loan products for you

Business Loan for professionals

Business Loan for women

What our customers say about us

ADENIUM PHARMACEUTICALS

LIMNESH V V N

SURAJ SANJAY MANE

SHIV KUMAR .

J M NARASIMHAMURTHY

BABEETHA T

ARIVANNAL S

ANWARULLAH NOORULLAH KHAN

D KARUNANITHI

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FAQs on Loan on Small Business

How long does a small business loan typically last?

Can a person with poor credit obtain a small business loan?

What are the terms of a small business loan?

What is the small business loan interest rate?

What kinds of financing are available for small businesses?

How does a woman go about getting a small business loan?

What do I need to submit with my loan application for a small business?

How do small businesses meet the requirements for a business loan?

What happens if someone is unable to repay a business loan?

Does a small business loan impact one's credit personally?

Who is eligible for a small business loan?

Can I get a loan for starting a new business?

How quickly can I get a loan to start a new business?

Do I need collateral for a startup business loan at Tata Capital?

Can a new business without prior turnover apply for a loan?

How to improve chances of loan approval for startups?

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