Business Loan
Fulfil all your business goals, Get exclusive Business Loan offers waiting for you
What is Business Loan ?
Volatile market trends and increasing business needs cause demand for urgent immediate cash-in-hand. A Business Loan designed for this purpose gives you the advantage to avail unsecured credit at competitive interest rates.
Whether you plan to invest in infrastructure investment or upgrade plant and machinery, a Business Loan caters to all your commercial needs.
Different Types of Business Loan for Your Various Needs
Plant and Machinery Loan
You can install and upgrade your business plant and machinery to the latest standards to meet your growing business needs with plant and machinery or equipment loans.
SME and MSME Loan
Small and Medium Enterprises are now in a position to expand operations, and scale business heights easily with SME and MSME Loans.
Micro Business Loan
Small business loans are a way to finance small requirements, and as such are designed to be repaid in shorter loans periods to suit your needs.
Self Employed Professional Loan
Professionals such as Doctors, Chartered Accountants, and Architects are people who have little time at hand to attend to their professional finance needs. Hence, Self Employed Professional Loans are loans designed suit such a Professional's financial requirements.
Balance transfer
Transfer an existing Loan to another bank or NBFC that gives you better Business Loan eligibility criteria and interest rates.
Business Loan for Women
Especially designed for the women entrepreneurs, Business Loans for Women offer high-value finance to support growing business needs of women.
Working Capital Loan
Working Capital Loans are finance designed to maintain healthy cash flows with unsecured finance to strengthen and grow your business without disruptions.
Term Loans
These loans are given mainly for capital investment, which will be of long-term in nature. It could be for building the factory premises, improving the infrastructure, modernisation of the existing structure, etc. The quantum of loan involved in this facility will be high and will be disbursed in a lump-sum. The repayment period also will be longer and can range between 7 years to 20 years. The rate of interest will be based on the profile of the Company, Credit Rating, the quantum and period of the loan. The prime security will be the assets created out of the finance and collateral security will be a mortgage of residential/commercial property. To apply for this type of finance, you should have a detailed project ready along with a business charter as to how the loan amount will be utilized.
How to Apply for a Business Loan?
Fill Application Form
Enter your details in the Business Loan Application Form and furnish your essential documents as asked to further the process
Free Consultancy
You will receive call from Megamind loans Business Loan Specialist team, They will give full details and offers of different banks & NBFC.
Bank Process
as per your choice, your application get processed in desired bank for further verification and legal processing of documents.
Approval & Disbursal
After approval, your Business Loan Amount will be disbursed to your Bank Account
Features & Benefits of Business Loan
Affordable High-Value Capital
Well-known banks and NBFCs offer easy and quick short-term, medium-term, and long-term business loans as an ideal finance solution for your enterprise.
Flexi Loans
Withdraw only what you need and repay to suit your business fund flows at nil or low prepayment charges. You only pay interest on EMIs for the initial period of the loan and interest is charged only on the amount withdrawn.
Hassle-Free Quick Unsecured Loans
Business Loans are unsecured loans approved in 24 hours, which come to you with easy eligibility, and just a few documents.
Multi-Purpose End-Usage
Whether you're looking for investment in infrastructure, expansion in operations, purchase of equipment or inventory, or working capital needs, you have the advantage to seek a multi-purpose business loan, all in one place.
Collateral-Free
Business Loans are collateral-free, for which your personal or business assets are not put to risk, and since this means no appraisals of assets for valuation, you have the quick approval and disbursal advantage.
Online Account Access
You're simply free with the convenience of access to your business loan account for your loan statements and other details so that you can manage your loan from anywhere at any time.
Fees and Charges for Business Loan
You should be ready to pay the processing fees for your housing loan. Some banks charge less processing fees, but may make up for that somewhere else. On the other hand, some banks and financial institutions consolidate their charges and include them in the processing fees. Let us look at some common charges you will most likely incur when you apply for home loan.
Upfront fee for processing
Many banks charge an upfront fee for processing your application. This is usually in the range of Rs. 3,000 to Rs. 5,000. This is a non-refundable fee, even in case the bank rejects your loan application. In case they sanction your loan, they adjust this fee in their regular processing fees.
Processing fee
This amount ranges from 0.20% to a maximum of 2% depending on your employment status. Salaried employees incur a smaller fee whereas self-employed professionals and business persons have to pay more. Some banks do have a uniform rate. Note that you have to pay GST @ 18% on this processing fee.
Valuation charges
Many banks charge for the valuation of the property. They have independent evaluators on their panel. These banks have a fixed structure of payment. Some banks insist that the customer pays to the bank whereas some of them include this amount in their processing fee structure.
Legal scrutiny charges
Legal scrutiny of the property is mandatory. The financing bank has to ensure that you get a clear title to the property so that the mortgage holds well in law. Therefore, they have a panel of legal experts who carry out the search for a period of 30 years. You need to supply the property documents to these advocates to allow them to do the needful. Some banks ask the customer to pay the advocates separately whereas many banks include these charges in their processing fees.
Mortgage registration charges
The prime security for the home loan is an equitable Most of the states in India require you to register the equitable mortgage in the bank's favour. Under such circumstances, you incur stamp duty and registration charges. The equitable mortgage does not attract stamp duty in some states like Rajasthan. However, in states like Tamil Nadu, there is a stamp duty of 1% of the loan amount subject to a maximum of 25,000. In addition, you have to pay 5,100 as registration charges. These charges changes state wise please consult with lawyer/Financial consultant for better under standing. Be aware of these additional expenses when you avail Loan against Property (LAP).
Pre-EMI charges
Some banks have the system of charging pre-EMI charges. Ascertain these charges beforehand.
Insurance
Taking out insurance for the property is mandatory. At the same time, many banks and financing companies bunch a lot of their products like loan insurance, Mediclaim family floater policies, accident insurance, and critical illness cover, etc along with the loan. They provide the financing for the premium as well. Of course, you have to repay the same in your EMI. In a way, it is good to have these insurance policies because life is uncertain. In case something happens to the breadwinner and the principal borrower, the insurance can take care of the liability. However, other than the property insurance, all the other policies are optional. You can refuse to take them.
Business Loan Eligibility
Various factors go into the determination of your Loan eligibility. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons
Your current income
Self-employed professionals should submit the statement of accounts for one year where they receive the credits for the services rendered by them.
Continuity of business
Self-employed businessmen and professionals can furnish the income tax returns along with other financial statements like balance sheet and profit and loss statements. They can also furnish copies of invoices raised by their clients.
- Minimum 3 years Own Business Vintage
- Minimum Annual Turnover and Profit at Lender’s Discretion
- Registered Chartered Accountant Audited Balance Sheet Compulsory
- No Previous Default with any Financial Institution
Current obligations
It is possible that an applicant might have pre-existing personal loans, vehicle loans, and other loans for which they might be paying instalments. You have to account for these instalments as well while calculating Loan eligibility.
Credit history
he repayment track record of the applicant is of utmost importance. Every bank or financial institution is a member of CIBIL or another credit bureau. These bureaus keep track of the loan activities of every borrower. Based on this information, they generate your credit history profile and quantify the same by generating your credit score. This is a number ranging between 300 and 900. The higher your score, the better are your chances of getting a loan. Naturally, it goes without saying that defaults, frequent requests for loans or missing payments can pull down your credit score. A score of 700 and above is considered fair for determining Loan eligibility.
Age of the borrower
The minimum age of the borrower at the time of home loan application should be 21. The age at the time of maturity should generally be 65 years. Some banks stretch this limit to 70 years.
Business Loan Documents Required
Every customer has to satisfy the Know Your Customer (KYC) norms stipulated by RBI. You have to provide the documents relating to your KYC, employment, business, and income
Identity Proof
- PAN Card
- Aadhar Card
- Voter ID
- Driving License
- Passport
Address Proof
- Registered Rent agreement
- Aadhar Card
- Driving License
- Lease agreement
- Passport
- Latest Gas or electricity bill
Other documents:
- Loan application form duly filled in
- Photographs
- Signature Proof
Proof of Business
- PAN
- GST Registration Certificate
- Trade License Partnership Deed
- Article of Association
- Memorandum of Association
- Import Export Code
- Registration Certificate
- Professional Practice License for Doctors, Consultants, etc
- Registration Certificate of Establishment for Shops, Factories, and Other Establishments
- Business Address Proof
Income Proof – Financial Statement Audited by CA
- Profit and Loss Account Statement
- Balance Sheet
- 6 Months Bank Statements
- 3 years Income Tax Returns
Income Tax
- 3 years Income Tax Returns or Assessment Orders
- Advance Income Tax Paid
Business Loan EMI Calculator
When you decide to apply for a Business Loan, you need to assess your repayment capability so that you don’t end up in any financial problems and can find the cheapest Business Loan. Business Loan EMI Calculator is a useful tool in this regard for calculating the EMI (equated monthly instalment) of a Business Loan. It is a free of cost user-friendly tool that can be used anytime and from anywhere to calculate the monthly instalments you will have to pay. The Business Loan EMI Calculator requires you to enter a few Business Loan details to give you an accurate result, such as loan amount, interest rate, and repayment tenure.
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