Business Loan
- Business Loan from ₹1 Lakh to ₹1 Cr*
- Collateral-Free Business Loan
- Quick Loan Approval & Fast Disbursal
Documents are organised by category for clarity:
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Instant Business Loan: Overview
A business loan is a financing solution that enables businesses to meet diverse funding requirements, including working capital, business expansion, equipment purchases, inventory management, and other operational needs.
Applying for a Tata Capital Business Loan is simple, and it comes with features that make business financing easier, including:
Business Loan from ₹1 Lakh to ₹1 Cr*
No Collateral Required
Quick Loan Approval
Fast Loan Disbursal
Apply Online with Minimal Documentation
Repayment Tenure up to 60 Months
-
Loan Amount
Up to ₹ 1 Cr*
-
Loan Tenure
12 to 60 months
-
Interest rate starting @
12% p.a.
Features and Benefits of our Business Loan
Avail TATA Capital loans directly from WhatsApp
Why Choose Tata Capital For Business Loan
Business Loans up to ₹1 Cr* with no collateral
End-to-end digital application with e-KYC and paperless processing
Interest rates starting from 15% p.a.*
Dedicated relationship support for eligible loan amounts
Flexible repayment, including part-prepayment and foreclosure
Loan disbursal within 48–72 hours of approval*
Transparent pricing with no hidden charges
Easy loan management via the app, website, and WhatsApp
How to Apply For Business Loan in India?
You can apply for a business loan in India with Tata Capital in the following ways:
Business Loan Eligibility Criteria
Tata Capital offers business loans to both salaried individuals and business owners, with distinct eligibility conditions. Make sure you meet these criteria when applying for a business loan:
For Business Owners
For Salaried Individuals:
Minimum 2 years of business continuity with regular profits
A healthy monthly bank balance of Rs. 5,000 or more
Minimum CIBIL score of 675, showing repayment discipline
Applicant’s age must be 21 years at the time of application and not exceed 65 years at loan maturity
- Must have a stable job with verifiable income documents
A CIBIL score of 675 or above is needed to qualify
Age must be between 21 and 65 years at the end of loan tenure
Income proof and job continuity are key approval factors
Documents Required for a Business Loan
Identity Proof
PAN card of applicant and business
Aadhaar card
Address Proof
Aadhaar, passport, or utility bill
Registered office address proof
Financial Documents
Income Tax Returns for the last 2-3 years
Audited profit and loss statement
Balance sheet for the last 2-3 years
Business Proof
Certificate of incorporation, partnership deed, or shop and establishment licence
GST registration certificate
Udyam registration
Bank Statements
Last 6-12 months of primary business account
Statements of any additional operational accounts
Business Loan Fees & Charges
Tata Capital strives to make your business loan affordable. Here’s a table outlining the business loan interest rate, fees, and charges.
| Type of fee | Applicable charges |
|---|---|
| Rate of interest | Starting from 12% per annum |
| Processing fees | Up to 3% of the loan amount + GST |
| Documentation charges | Rs. 1,999 |
| Part-pre-payment charges/Foreclosure charges | 4.5% of the part-pre-payment amount/principal outstanding at the time of foreclosure |
| Penal charges | 3% per month on the defaulted amount (Annualized Penal Charge of 36%) |
| Statement of accounts charges | Customer portal - NIL
|
| Loan cancellation charges | 2% of the loan amount or Rs. 5,750, whichever is higher |
| Stamp duty | At Actuals |
| Dishonor of any cheque/payment instruments | Rs. 600 per instrument per instance |
| Mandate rejection service charge | Rs. 450 |
Business Loan Repayment Options
Choose the repayment structure that suits your business:
Standard EMI: Equal monthly instalments through NACH auto-debit
Step-up EMI: Lower initial EMIs that increase as business grows
Bullet payment options: Available on select working capital products
Part-prepayment: Reduce principal at any time
Full foreclosure: Close the loan before the scheduled tenure
Find the Right Loan for Your Business
Machinery Loan
MSME Loans
Hybrid Term Loan
Small Business Loan
Important RBI Compliance Updates for Business Loan Borrowers
Recent RBI updates that affect business loan borrowers:
Zero prepayment charges on floating-rate loans to individual borrowers extended to smaller lenders for loans up to ₹50 lakh (2025 updates)
External Benchmark Lending Rate (EBLR) linkage requires reset at least every 3 months
Key Fact Statement mandatory for all sanctioned loans, showing complete cost breakdown
Digital lending guidelines require upfront disclosure and cooling-off period
Fair Practice Code protects against arbitrary rate changes and hidden fees
Apply for a business loan online with Tata Capital and get financing that supports your growth.
Unsecured business lending loans
Lenders offer business lending loans with and without collateral. The ones provided without pledging collateral are known as unsecured loans. They are ideal for small and mid-sized enterprises that require urgent access to funds for operations, expansion, or marketing. These loans are typically approved based on business turnover, credit history, and financial performance.
Unlike secured loans, there’s no need to pledge assets such as property or equipment for unsecured loans. The key features include faster approval, minimal documentation, and flexible repayment options. However, unsecured business loan rates are slightly higher since the lender’s risk increases in the absence of pledged collateral or security.
Tata Capital processes unsecured business loans within a few days, making them a convenient option for entrepreneurs seeking timely financial support without risking business assets.
Fostering MSME Growth in India
Tata Capital provides the best business loans in India to strengthen new-age entrepreneurs. Being an owner of a micro, small, or medium-sized enterprise (MSME), you can avail of our MSME loan to nurture and expand your business. We also offer business loans for new businesses at a competitive business loan interest rate to support new entrepreneurs. You can use our business loan calculator to know the EMIs that you would have to pay for your small business loan and plan your repayments accordingly.
Women entrepreneurs can apply for business loans for women and avail of some exclusive features and added advantages. Our eligibility criteria and the documents required for a business loan are the bare minimum. . Furthermore, you don’t have to fret about how to get a business loan, as you can apply for it by filling out a business loan application form on our website, dialing our customer care number through our app, or visiting your nearest Tata Capital branch.
How Business Loan EMI Is Calculated
When you take a business loan, you’re required to pay Equated Monthly Installments or EMIs every month towards its repayment. Your business loan EMIs depend upon various factors, including your business loan amount, tenure, and the rate of interest.
A business loan EMI calculator is a simple online tool that can help you evaluate the EMI amount that you will need to pay every month for the repayment of your business loan. Your EMIs will constitute both - the repayment of the principal component as well as the interest component of your business loan.
Here’s the formula a business loan EMI calculator uses to compute business loan EMI accurately:
E = : [P x R x (1+R) ^N]/[(1+R) ^N-1]
Here, E is the EMI amount, P is the principal amount, r is the rate of interest applicable on a monthly basis, and n is the tenor or duration for which the loan is taken.
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FAQs on Business Loan
What is a Business Loan?
Who can apply for a Business Loan?
Business Loans can be availed by self-employed individuals, proprietorship firms, partnership firms, LLPs, private limited companies, and other eligible business entities that meet the prescribed eligibility criteria.
What is the minimum and maximum Business Loan amount I can avail?
Tata Capital offers Business Loans ranging from ₹1 Lakh to ₹90 Lakh, subject to eligibility. The final loan amount is determined based on your business requirements, financial profile, and repayment capacity.
Are there any foreclosure or prepayment charges?
Yes, foreclosure and part-prepayment charges may apply as per the applicable loan terms. A part-prepayment charge of 4.5% of the prepaid amount may be applicable.
How is the Business Loan amount determined?
The sanctioned Business Loan amount is determined after assessing your funding requirement, business financials, repayment capacity, credit profile, and overall eligibility.
What documents do I need to apply for a Business Loan?
The documents required for a Business Loan vary based on your business profile and eligibility. Typically, lenders may require identity proof, address proof, PAN, business proof, bank statements, income documents, and other supporting documents.
Can I get a Business Loan for a new business?
Business Loans are available to applicants who meet the prescribed eligibility criteria. If you have recently started your business, your eligibility will be assessed based on the lender's requirements and your business profile.
How old should my business be to qualify for a Business Loan?
Business vintage is one of the factors considered while evaluating a Business Loan application. Eligibility is determined based on the lender's criteria, along with your business profile, financials, and repayment capacity.
What is the minimum CIBIL score required for a Business Loan?
There is no fixed minimum CIBIL score for a Business Loan. Your credit score is evaluated along with factors such as your business profile, repayment capacity, financial performance, and other eligibility criteria before a loan decision is made.
Can I get a Business Loan without ITR?
The documents required for a Business Loan depend on your business profile and the lender's eligibility criteria. Check the list of required documents to understand the documentation applicable to your loan application.
Is GST registration mandatory for a Business Loan?
The requirement for GST registration depends on your business profile and the lender's eligibility criteria. Review the documentation requirements to know which documents are applicable to your loan application.
Can I get a second Business Loan if I already have one?
Yes, you may be eligible for a second Business Loan even if you have an existing loan. Approval is subject to your repayment history, existing financial obligations, and the lender's eligibility criteria.
Can I modify or restructure my Business Loan terms after sanction?
Yes, you can request modifications to your Business Loan after sanction, such as changes to the repayment tenure or other applicable loan terms. Any modification is subject to verification and approval.
What are the tax benefits available on Business Loans?
The interest paid on a Business Loan used for business purposes may be claimed as a business expense under the applicable tax laws. However, the principal repayment is not eligible for tax deduction. Consult a tax advisor to understand the benefits applicable to your business.
How can I track my Business Loan application status?
You can track your Business Loan application status by logging into the Tata Capital customer portal or mobile app. You can also contact customer support using your application ID to get the latest update on your application.
What happens if my Business Loan application is rejected?
A Business Loan application may be rejected due to reasons such as a low credit score, incomplete documentation, or not meeting the eligibility criteria. Once the reason has been addressed, you can submit a fresh application, subject to the applicable eligibility requirements.
What types of Business Loans does Tata Capital offer?
Tata Capital offers Business Loans for a wide range of business needs, including MSME/SME Loans, Working Capital Loans, Machinery & Equipment Financing, Construction Financing, Commercial Vehicle Loans, Term Loans, and Business Loans for Women. You can choose a financing solution based on your business requirements.
Can I make partial pre-payments on my Business Loan?
Yes, you can make part-prepayments on your Business Loan as per the applicable loan terms. A part-prepayment charge may apply. Refer to the Business Loan Fees & Charges section for the applicable charges.
Can I get a 100% Business Loan?
The Business Loan amount you can avail depends on factors such as your eligibility, credit profile, repayment capacity, and business financials. The final sanctioned amount is determined after evaluating your loan application.
What is an MSME Business Loan?
An MSME Business Loan is designed to help Micro, Small, and Medium Enterprises meet their funding requirements. The loan can be used for working capital, business expansion, equipment purchase, inventory management, or other operational expenses.
What is the impact of my CIBIL score on a Business Loan?
Your CIBIL score plays an important role in the Business Loan approval process. A strong credit score improves your chances of approval and may help you secure a higher loan amount at a more favourable interest rate.
What is the application process for a Business Loan at Tata Capital?
You can apply for a Tata Capital Business Loan online or by visiting your nearest branch. Simply complete the application form, submit the required documents, and complete the verification process. Once your application is approved, the loan amount is disbursed as per the applicable terms.
How long does it take to get a Business Loan approved and disbursed?
The approval and disbursal timeline depends on your eligibility, documentation, and verification. Once your application is successfully verified and approved, the loan amount is disbursed as per the applicable process.
What are the current Business Loan interest rates and charges?
Business Loan interest rates start from 15% p.a., while the applicable charges vary based on the loan amount, tenure, eligibility, and credit profile. Refer to the Business Loan Interest Rates and Fees & Charges sections for the latest details.
How can a Business Loan EMI Calculator help my business?
A Business Loan EMI Calculator helps you estimate your monthly EMI before applying. It enables you to compare different loan amounts and repayment tenures, helping you choose a repayment plan that best suits your business finances.
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