What is a Business Loan?
There comes a time in every business when there is a need for extra credit and funds for its smooth functioning. These funds help you, the business owner, to expand, invest and help in your working capital needs. At times like these, a quick business loan is the best financial aid that can help you grow.
This borrowed capital can be applied towards daily capital expenses, for specific project funding, expansion of the business including purchasing of new machinery for the business. You can also apply to take a loan for business if you need investment for starting a new business or ancillary units for your existing business.
How to apply for a Business Loan?
Any business entity or owner can apply for a business loan. Before you apply for a business loan, you need to understand the basic purpose of this loan and how you intend to utilise it. Here's a list of the basic documentation you will need to submit:
- Application form
- Company bank statements for six months
- Income Tax Returns for 2 years
- Balance sheet and P&L accounts for 2 years
- KYC documents of the company including PAN Card, Registration of Incorporation, Partnership deed, Memorandum & Articles of Association.
- KYC documents of the owners
- A report as to how the business loan intends to be utilised
Applying for a business loan has its advantages:
- You can use the funds for any immediate requirement you may face including your daily capital needs.
- Unlike investments from private equity firms or entities, there is no need for profit sharing
- Business loans can also help in tax benefits for the company
- You also have the option of opting for Flexi EMIs, where you can control the outflow of repayment
- For all our customers, Tata Capital offers pre-approved loans for the business finance needs
- There is no need for any collateral or guarantee for business loans for up to Rs 50 lakhs
Are you eligible for a Business Loan?
To be eligible for a business loan, these are the points you need to keep in mind:
- You need to be minimum of 25 years of age and maximum 65 years
- Your business should have been making profit for 3 consecutive financial years
- Turnover should be on a positive trend
- Balance sheet has to be audited by a registered chartered accountant
Check your eligibility using a business loan calculator.
What are the business loan interest rates and the maximum amount of loan one can take?
With Tata Capital, you can apply for a loan starting at Rs 3 Lakhs. The maximum amount you can apply for is Rs 50 Lakhs, without any collateral of guarantee.
Tata Capital offers you the best fixed interest rate that is suited for your company and does not dip into your monthly cash flow. Our business loan interest rates range between 18% to 24%, depending on your requirement.
How much EMI do you have to pay?
Tata Capital offers you the option of Flexi EMI Options, where you get to choose how much EMI you wish to repay per month, depending on your monthly cash flow. You can choose from:
- Step Up Flexi EMI plan: You have the option of upgrading your fixed monthly EMI, every year under this plan
- Step Down Flexi EMI Plan: With this option, you have the choice to start at a higher EMI and gradually, year on year, bring your monthly payment down.
- Bullet Flexi EMI Plan: This option allows you to pre-pay your loan in specific intervals.
To know more about how much EMI you will need to pay, use our business loan calculator.
What are the documents you need?
To avail a business loan, you will need the following documents:
- Complete KYC of the company
- KYC documents of the owners, partners, shareholders,
- Audited balance sheet and profit & loss account for 2 years
- Income Tax Returns for 2 year
- Certified bank statements for six months
Check the complete list of business loan documents required.
Why Tata Capital?
Running a successful business is not an easy task. There are always ups and downs that you, as a business owner face. We, at Tata Capital, understand that meeting every financial need is not simple and sometimes you do need a helping hand.
We take special pride in being that institution that can help you when you need help the most. We also give you the option of choosing what kind of loan you would need. This helps in routing that fund in the right direction and give you the boost you need. Be it project funding, the working capital requirement for raw materials purchase, term loans for machinery or bank overdraft, we have the solution that you are looking for.
- Quick disbursement: Once all your documents are in place, your loan from Tata Capital can be disbursed within 3 business days.
- Business Loan Interest Rates: Tata Capital believes in applying the best market practices and adheres to the principle of giving its valuable customers the best business loan interest rates.
- Guarantee: We offer you commercial loans with no additional collateral or guarantee.
- Flexible EMI option: We give you the option and convenience of to customise your monthly loan repayment instalment that is best suited for your company's cash flow.
- Complete access: You will have complete online access to your loan account and can keep track of your EMI schedule, interest paid on each EMI and interest certificates.
- SME & MSME Loans: You can choose to fund your small or medium sized enterprises using SME loan. There are various factors to be considered to get approval. Find out more about small business loans.
Business Loans are originated and serviced by Tata Capital Financial Services Limited and are at its sole discretion. Terms and conditions apply.
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