How to Get 10 lakh Business Loan Online

Every business demands funds for growth, expansion, and operational needs. Unlike deep-pocketed corporations, small businesses don’t always have those funds readily available. This is why an SME loan for business is important, as it not only helps businesses keep running but also expand.

If you’re starting a new company or expanding an existing one, you need financing to scale your business or keep it running smoothly. For every small business, ₹10 lakh proves enough to cover working capital, infrastructural expenses, or to expand the workforce.

With technological advancement, it has never been easier and faster to apply for a ₹10 lakh business loan online. The question is, ‘How to apply for 10 lakh loan online?’. Discover a step-by-step process to apply for business loan 10 lakh India.

Why Choose a 10 Lakh Business Loan Online?

As a small business owner, ₹10 lakh helps you unlock financial stability and meet the financial demands of your business. From stacking up your inventory to hiring new employees, the amount is enough to meet different financial objectives. Here is why you should apply for a 10 lakh loan online:

Quick and Easy

Traditional business loans require you to fill out loads of paperwork, visit the branch multiple times and wait for weeks to get approval for the loan. However, one of the main online business loan advantages is that they are quick and are approved instantly, often within 24 to 72 hours at times.

Access to a Wide Range of Lenders

There are different types of business loans you can choose from for your specific business needs. Each lender offers you different terms and schemes, which makes choosing the lender important. NBFCs and Fintech platforms have revolutionised lending in this regard by offering exposure to multiple lenders in one platform. Whether it is NBFCs, banks, or digital lenders, you can get a 10 lakh loan online with favourable terms.

Flexible Loan Terms

One of the main benefits of online business loans is that you can decide the terms of the loan based on your convenience. Now, you can modify your EMIs, tenure, prepayment dates, and more. This provides entrepreneurs with the flexibility to synchronize the repayment with cash flows and business cycles.

Types of Online Business Loans Available for 10 Lakh

Working capital loans are ideal for covering day-to-day operations/expenses, whereas term loans are ideal for business expansion plans. There are different types of business loans online that cater to your specific business needs. Here are the different types of business loans online for 10 lakh:

Term Loans

Term loans provide a fixed amount that you can pay off in fixed installments. These loans are ideal for businesses wishing to invest in long-term assets. With this 10 lakh business loan in India, you can expand operations, purchase machinery or open a new branch.

Working Capital Loans

A working capital loan of 10 lakh, on the other hand, assists in funding day-to-day operational costs such as rent, stock, or staff salaries. This loan type is particularly helpful in seasonal dips or high-demand periods.

Secured vs Unsecured Loans

• Secured Loans: These demand pledging collateral such as property, equipment, or inventory and offer lower interest rates because of it.
• Unsecured Loans: These do not demand collateral, which makes them suitable for small-scale businesses or newly established companies.

Government Schemes

Owing to the importance of small businesses in India, the government offers loan schemes such as Mudra loans online under Pradhan Mantri MUDRA Yojana (PMMY) and PMEGP. These schemes allow small businesses to avail of loans for business growth and expansion. The loan disbursement is done through online channels with other added advantages such as reduced interest rates and longer tenures.

Eligibility Criteria for a 10 Lakh Business Loan

Both government schemes like Mudra and business loans from NBFCs/banks offer their own sets of benefits. The same goes for the business loan eligibility criteria. If you are applying for a business loan, here are the general 10 lakh business loan eligibility criteria you must follow:

Basic Eligibility Criteria

Age	21–65 years
Business Vanity	Minimum of 1 year of operation
Minimum Turnover	₹1,00,000 per month
Credit History	Good/strong

Specific Loan Requirements

When you apply for a 10 lakh business loan, you will need to supply or submit these business-related documents as well:

• A business plan
• Proof of profitability or consistent revenues
• Digital verification of bank statements or GST returns

Government Loan Eligibility

To be eligible for schemes such as Mudra or CGTMSE:

• Business must fall under micro or small enterprise segments
• Entrepreneurs should not have defaulted on past loans.
• There are special loan schemes for women, SC/ST entrepreneurs, or rural segments.

Mudra Loan Schemes
Shishu	Up to ₹50,000
Kishor	₹50,000 to ₹5 lakh
Tarun	₹5 lakh to ₹10 lakh
Tarun Plus	₹10 lakh to ₹20 lakh

How to Apply for a 10 Lakh Business Loan Online?

The business loan rejection rate is higher in India for multiple reasons. Either the business owners are not familiar with the business loan application process or commit mistakes ranging from submitting unrealistic business plans to maintaining a poor credit score. You can improve your chances of small business loan approval by following this step-by-step online application process:

Necessary Business Loan Application Documents

Identity Proof	Aadhaar Card, Driving License, Passport
KYC	PAN card
Address Proof	Aadhar Card, Rent Agreement, Driving License, Voter’s ID, Ration Card and Passport
Banking Documents	Last 6 months current account bank statements, ITR or GST returns, Financial statements (P&L, Balance Sheet)
Business KYC	GST Registration Certificate, Shops & Establishment Certificate and Business PAN Card

How to Apply for 10 lakh Business Loan Online

• Compare Lenders: Choosing the right lender that not only offers favourable terms but also helps you meet your financial objectives is the most crucial step of the loan application process. Choose the right lender by comparing all of them and their terms.
• Check Eligibility: After selecting a lender, you must check the eligibility criteria set and ensure that you fulfil their requirements.
• Fill Application Form: It’s an important step where you must provide all necessary details without mistakes such as business name, turnover, and loan size.
• Upload Documents: You must provide all the necessary documents for identity verification, business verification and KYC.
• Verification & Approval: Once you have submitted all the documents and completed KYC, wait for approval, which could take 1–3 days for NBFCs/government schemes and up to 3 weeks for banks.
• Disbursal: On loan application approval, the lender credits the amount directly into your bank account, which you can use to grow your business.

Online Application Platforms

When choosing a lender, you select either NBFC, government schemes, or private/public banks. The most popular platforms to apply for a 10 lakh business loan online are:

FlexiLoans	NBFC	Unsecured loan
HDFC Bank and ICICI Bank	Private Sector Banks	Secured loan
SBI and PNB	Public Sector Banks	Secured loan
Indifi, Lendingkart	NBFCs	Secured/Unsecured loan
Mudra or CGTMS	Government Schemes	Subsidies

Interest Rates and Repayment Terms for 10 Lakh Business Loans

Interest rates and repayment terms have a direct impact on your business loan and financials. This is why you must study them in order to manage your finances post-loan.

Interest Rates for 10 Lakh Business Loan

Business loan interest rates in India are usually between 10% to 24% annually. However, it depends on:

• Loan tenure
• Business turnover
• Credit score
• Availability of collateral

Suppose you take a loan for business of 10 lakh. Here is how much your EMI will be:

Principal Amount	₹10 lakh
Interest Rate	11%
Tenure	5 Years
Monthly EMI	₹21,742
Total Interest	₹3,04,545
Total Amount Payable	₹13,04,545

Tenure and EMI

The repayment terms for business loans will depend on your business and credit profile. Tenure usually ranges from 6 months to 5 years. You can also utilise an online business loan EMI calculator to select the most suitable option. Increasing tenure decreases EMI but also increases the interest you have to pay on the loan.

Flexible Repayment Terms

Depending on the lenders, you can get access to these benefits:

• 6 months of EMI moratorium periods
• Foreclosure or part-prepayment with no additional charges
• Step-up EMIs wherein the EMIs go up step by step along with the business growth.

Benefits of Getting a 10 Lakh Business Loan Online

Applying for a 10 lakh business loan online is useful for small business owners as well as entrepreneurs in various ways. It’s the 21st century, and getting loans has never been more convenient and easy. Here are some of the main benefits of online business loan of 10 lakh:

1. Speed and Convenience

The speed and convenience of application is one of the most important 10 lakh loan benefits. As a business owner or entrepreneur, you can apply for a SME business loan from the comfort of your home or office, at your own pace, without ever having to visit the branch.

The whole process, from submission of application to approval, is done completely online. Many of the online portals offer instant approval within 24–72 hours, which is great for businesses requiring immediate access to capital.

2. Minimal Documentation

The most useful benefit of the process is that you can get an easy business loan online with minimal documentation. Traditional business loans require a lot of documents and stand in long bank queues. Online business loan platforms by NBFCs, on the other hand, demand minimal paperwork in the form of ID proof, registration certificates, bank statements, and financial reports. The process becomes much faster and more convenient with e-KYC and PAN authentication.

3. Access to Wide Range of Lenders

With several Fintech portals and online NBFCs, you can compare loan offers side by side before selecting. You can see interest rates, loan tenure, processing charges, and other costs in one single platform. This helps you select the most cost-efficient and appropriate option. This visibility and presence of competitive terms enable borrowers to negotiate improved terms and prevent overpayment.

4. Government Subsidies and Schemes

Mudra loans alone have disbursed over ₹33+ lakh of collateral-free loans, with 4.79 crore applications sanctioned in the FY25. While submitting an application online through government-approved portals or taking loans in schemes such as Mudra or CGTMSE, the lender can further benefit from reduced interest rates, no collateral, and repayment support. Such schemes help micro, small, and start-up enterprises enjoy inexpensive credit with fewer impediments.

Common Mistakes to Avoid When Applying for a 10 Lakh Business Loan Online

Though it’s quick and easy to apply for a 10 lakh business loan online, most applicants end up making mistakes that delay the approval process or, worse, face rejection. Here are some mistakes to avoid in a business loan application for a better chance of getting approved for a business loan:

1. Incomplete or Incorrect Documentation

Incomplete or poor documentation is the most common cause of loan application rejection. Make sure that all the necessary documents are properly filled up, updated, and consistent. These documents include ID proof, business registration, bank statements, GST returns, and financials. Small differences in signatures, different PAN numbers, or old addresses can ring alarm bells for lenders.

2. Not Checking Loan Terms Thoroughly

Most borrowers get blinded due to quick approvals and ignore the terms and conditions. However, you should always check the interest rates, processing charges, prepayment penalties, EMI schedules, and any additional charges before signing the loan agreement. What seems like a good deal at first glance can prove expensive later if not carefully considered.

3. Ignoring Eligibility Criteria

Every lender has its own set of business loan eligibility criteria like minimum turnover, age of business, credit history, and other financial reports. Applying for a loan without these documents can lead to loan rejection. You should always do pre-verification of your eligibility using online tools in advance.

4. Not Considering Repayment Capacity

Borrowers often try to get as much money as they can. They don’t consider whether they can repay that amount comfortably or not. Don’t make this mistake. Use EMI calculators to calculate your monthly repayment liabilities and match them with your cash flow. Over-borrowing creates financial stress, leads to EMI defaults, and hurts your credit history.

Conclusion

MSMEs are essential to economic growth since they provide major contributions to exports, employment, and production in many nations. In India, there are more than 6.3 crore MSMEs that account for 45% of the nation’s overall exports. It is not just small businesses that are growing in India but also the online financing market.

It is now simpler and faster than ever to take a 10 lakh online business loan. You will find many Fintech websites, banks, and government schemes at your disposal that will help you get a 10 lakh business loan based on your requirements. Whether you need money for funding working capital, buying machinery, or hiring additional staff, a 10 lakh online business loan will help you in your finances to grow your business.

If you’re planning to grow your business, apply for a 10 lakh business loan online now through a secure online platform and take your business to new heights. However, you must avoid the common mistakes while applying for a 10 lakh business loan online and read all loan-related documents carefully.

FAQs for How to Get 10 Lakh Business Loan Online