How to Apply and Get a Business Loan up to ₹10 Lakh in India

Are you a small or medium enterprise (SME) in India looking to fuel your business growth with an infusion of capital? A business loan of up to ₹10 lakh can provide the financial boost you need to invest in critical areas such as product development, office expansion, manufacturing upgrades, sales and marketing initiatives, and inventory purchases.

This guide outlines the key features, benefits, eligibility criteria, and steps to apply for a business loan online of up to ₹10 lakh in India.

Key Features and Benefits of a ₹10 Lakh Business Loan

1. Fuel Business Growth

A ₹10 lakh capital infusion enables SMEs to invest in key areas like product development, office expansion, manufacturing upgrades, sales, marketing and inventory. This can help your business unlock growth potential and seize new opportunities.

2. Collateral-Free Loan

Unlike traditional bank loans requiring collateral, ₹10 lakh business loans are usually unsecured. Your personal and business assets remain safe, offering financial flexibility while accessing the needed funds.

3. Fast Approvals and Disbursals

Online lenders use digital applications and advanced underwriting to provide loan decisions within 24-48 hours. Upon approval, funds are quickly disbursed into your account, allowing you to seize opportunities or address urgent cash flow needs.

4. Flexible Repayment Terms

A ₹10 lakh business loan offers tenures ranging from 12 to 60 months, with some even extending up to 96 months. This flexibility lets you align repayments with your cash flow and business cycles. You can choose daily, weekly or monthly instalments, ensuring repayment terms suit your financial management needs.

5. Minimal Documentation

The digital process for a ₹10 lakh online business loan involves minimal paperwork compared to traditional bank loans, which speeds up loan processing. Required documents typically include KYC, bank statements, GST returns and proof of business vintage.

6. Competitive Interest Rates

NBFCs and FinTech lenders extend risk-based pricing, offering competitive interest rates for business loans based on your credit profile, business financial health, industry segment and past repayment history.

Eligibility Criteria for a ₹10 Lakh Business Loan

• Age: To qualify, you must be between 23 and 65 years old and must not exceed 65 years of age by the end of the loan tenure.
• Business Vintage: Your business should have been operational for at least 3 years and not be on any lending institution’s blacklist.
• Credit Score: A minimum CIBIL score of 700 or above is typically required, demonstrating your creditworthiness and repayment capacity.
• Current Bank Account: You must have an active current account with a scheduled commercial bank.
• Proof of Business: You need to provide documents such as trade licenses, GST registration, shop establishment proof, etc., to validate the existence and operations of your business.
• Sound Financials: Lenders assess your turnover, profitability and cash flows using bank statements, GST returns and audited financial statements to determine your repayment ability.

Conclusion

A collateral-free business loan of ₹10 lakh offers quick processing, flexible terms, and minimal documentation, providing SMEs with essential growth capital. By meeting the eligibility criteria and submitting the required documents, you can easily secure funds for your business through an online business loan application.

FlexiLoans offers competitive business loan interest rates and a user-friendly business loan EMI calculator to help you plan your repayments effectively. With FlexiLoans, you can secure a collateral-free business loan of up to ₹10 lakh and fuel your business growth today.

FAQs

1. What is the maximum loan amount I can get for a business loan in India?

The maximum loan amount for a business loan in India varies depending on the lender and your business profile. However, many NBFCs and FinTech lenders offer unsecured business loans up to ₹10 lakh without collateral requirements.

2. How can I calculate my business loan EMI?

You can easily calculate your business loan EMI using an online EMI calculator for business. Simply input the loan amount, interest rate and repayment tenure, and the calculator will provide you with the estimated monthly repayment amount.

3. What is a collateral-free business loan?

A collateral-free business loan, also known as an unsecured business loan, is a type of loan that does not require you to pledge any assets as collateral. This means you can obtain funding for your business without putting your valuable assets at risk.

4. How does a line of credit differ from a term loan?

A line of credit offers a flexible business loan option where you’re approved for a credit limit and only pay interest on the funds used. In contrast, a term loan provides a lump sum, repaid through fixed EMIs over a set tenure.

5. Can I get a business loan with a low CIBIL score?

While most lenders prefer a good CIBIL score (700 or above), some NBFCs and FinTech companies provide business loans to those with lower scores. However, these loans may come with higher interest rates and lower amounts than those offered to applicants with good credit scores.

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