7-4-287, Navajeevan Nagar, Ferozguda, secundrabad - 500011.
Business Loan
Business Loan- Overview
Running a business is not easy, and you may have to face quite a few hurdles at various phases, which may need financial assistance to keep the business running and growing. Blooming businesses might demand quick business loans to stay at a consistent position in the market, and so the competition amongst the financiers is also increasing. At Finfree Enterprises, you can avail the business loans across India, and cater to fulfill the financial needs of micro, small, & medium businesses in various fields, for their overall growth & development.
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Easy documentation
Easy documentation
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Low interest rates
Low interest rates
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Improve credit score
Improve credit score
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Tax benefit
Tax benefit
Business Loan Features
Term Loans
Working Capital Loans
Business Expansion Loans
Equipment Financing Loans
Invoice Financing
Bill Discounting
Business Loan Eligibility and Documents
Read on to know the criteria required to apply for our Business Loan.
Eligibility Criteria & Eligible Entities
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Business Type - Most lenders provide loans to various types of businesses, including sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and more.
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Credit Score: - A good credit score is often required to qualify for a business loan. Lenders use your credit history to assess your ability to repay the loan.
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Business Age: - Some lenders require a minimum operational history for your business, usually ranging from a few months to a year or more.
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Annual Revenue: -Lenders may have a minimum annual revenue requirement to ensure your business has a stable income.
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Collateral: - Secured loans might require assets as collateral to secure the loan. Collateral can be real estate, equipment, inventory, or other valuable assets.
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Cash Flow: Lenders often evaluate your business's cash flow to determine your ability to repay the loan.
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Age Criteria: - Min. 21 years at the time of loan application & Max. 65 years at the time of loan maturity.
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Eligible Entities: - Individuals, MSMEs, Sole Proprietorships, Partnership Firms, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers, and other non-farm income-generating business entities engaged only in the services, trading, and manufacturing sectors
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Business Vintage – : Min. 1 year or above
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Business experience: – Min. 1 year, business location to remain same
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Annual Turnover: – Shall be defined by the Bank/NBFC
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Credit Score: – 700 or above (Preferred by most private and public sector banks)
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Nationality: – Indian citizens
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Additional Criteria: – Applicants must own either a residence, office, shop, or Godown.
Documentation for Business Loans
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ITR for the past 2-3 years
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Current Bank Account Statement for the last 12 months
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Photocopy of PAN Card
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Address Proof for Residence such as Voter Card, Passport, Aadhaar Card, Telephone Bill, Electricity Bill
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Address proof for Business such as the Telephone Bill or Electricity Bill
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Last Financial Year's provisional Financials and future year's projections.
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Company's business profile on the letterhead
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2 photographs of promoters and property owners.
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Sanction letter and Repayment schedule of existing loan
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GST registration certificate and GST returns of latest 2 years.
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D-Vat/Sale tax registration copy
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Udhayam Aadhaar registration certificate
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Rent agreement copy of factory and residence (if property is rented)
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Business Continuity proof of 3 years (3 years old ITR/Company registration etc)
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Company PAN Card, Certificate of Incorporation, MOA, AOA, List of Directors, and Shareholding pattern for Pvt Ltd companies
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Partnership Deed, Company pan Card for Partnership Companies
Fees and Charges for Business Loan
The fees and charges of business loans usually vary from lender to lender and from case to case. The below table gives you a clear idea of the charges related to business loans.
Particulars
Charges
Loan Processing Fees
1.5% to 5% of Loan Amount
Loan Cancellation
Usually 0 to 5% of Loan Amount
Stamp Duty Charges
60/- to 600/-
Legal Fees
NIL
Penal Charges
NIL
EMI / Cheque Bounce Charges
Approx 499/- to 599/-
We always help
They frequently asked
questions
?What is a business loan, and how much can one borrow?
A business loan is a type of financing provided to businesses for various purposes, such as starting a new business, expanding operations, purchasing equipment, or managing cash flow. The amount one can borrow depends on several factors, including the lender's policies, the borrower's creditworthiness, the purpose of the loan, and the financial health of the business. Typically, business loans can range from a few thousands to several Lakhs. Lenders assess the borrower's ability to repay the loan based on factors such as credit score, business revenue, and profitability.
? Who can apply for a business loan?
Business loans are available to various entities, including sole proprietorships, partnerships, LLCs, corporations, non-profit organizations, and startups. Eligibility is typically based on factors like the business's creditworthiness, revenue, profitability, and the borrower's personal credit history. Each lender may have specific criteria, so it's advisable to check with them for exact requirements.
? How Much Personal Loan You Can Get On Your Salary?
A final, personal loan amount that you can get from a lender depends on your salary, city of residence, age and other eligibility criteria. The best thing to know how much personal loan you can get on your salary will be using the personal loan eligibility calculator. It will tell you the amount that you can apply for as the loan after you select your city, age, salary and monthly expenses on the tool. This way, you can apply for the eligible amount and avoid the chances of rejections.
? What are requirements to get a business loan?
To get a business loan, you typically need to provide a business plan, demonstrate a good personal and business credit score, submit financial statements and tax returns for your business, and possibly offer collateral. Additional requirements may include legal documents, bank statements, and personal identification. Requirements can vary, so it's best to check with the lender for the specific documentation needed for your loan application.
? What is Udyam?
Udyam Registration, or MSME Registration, is a special card granted to small and medium-sized businesses by the government of India. This card has a unique number and a certificate stating that the company is a micro, small, or medium enterprise. This Udyam registration helps MSMEs secure loans with lower interest rates, reduced collateral requirements, and faster processing times, making it easier for small businesses to grow and thrive.
? How can I qualify my business for an instant business loan?
To qualify for an instant business loan, you typically need a good credit score, stable revenue, and a low debt-to-income ratio. Lenders may also require your business to have been operational for a certain period. Meeting these criteria increases your chances of qualifying for an instant business loan, which can provide quick access to funds for your business needs.
