Business loans need different inputs than personal loans - banks look at annual turnover, GST returns, ITR, business vintage (2-3 years preferred), and existing business debt. Eligibility is typically 20-40% of annual turnover for unsecured loans, more for collateral-backed ones. Rates: 12-22% unsecured, 9-14% with collateral.
When to use this
Use when: expanding your business and need working-capital loan, applying for MSME / Mudra / Stand-Up India schemes, comparing private banks (HDFC / ICICI / Axis) vs PSBs (SBI / BoB / PNB) vs NBFCs (Lendingkart / Capital Float) for business credit, planning bank-statement deposits before applying.
Frequently Asked Questions
What documents will the bank need for a business loan?
Standard set: business KYC (PAN, GST, incorporation cert.), 2 years' ITR + audited financials, last 12 months' bank statements, GST returns / sales register, existing loan statements. For larger amounts: project report, collateral docs (property papers, FD certificates). Mudra loans (< ₹10L) have lighter documentation.
Do I need 2 years of business vintage?
Most banks: yes. Some NBFCs and fintech lenders (Lendingkart, FlexiLoans, Capital Float) underwrite businesses with as little as 6 months of GST returns. Rates are higher (16-24%) but it's an option if traditional banks reject your application.
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