₹1 Lakh Business Loan

As a small business owner, you may require additional funds to manage working capital or hire employees to grow your team. These needs require funding, and having access to the right amount of capital ensures your business continues to operate smoothly without straining your cash flow.

Get an idea of the repayment plan at various tenures below:

• 12-month tenure at 14% interest: The EMI will be around ₹8,979, and the total interest will be ₹7,745. 

• 36-month tenure at 14% interest: The EMI will be ₹3,418, and the total interest will be approximately ₹23,039. 

Choosing a shorter tenure can reduce overall interest costs, while a longer one offers more manageable monthly payments. With flexible tenure options and quick disbursal, a business loan can provide the financial support your business needs.

You can secure a business loan of ₹1 Lakh from leading banks and financial institutions on this platform at a competitive interest rate. The table below provides details of the interest rate, maximum tenure, and loan amount:

The loan tenure primarily affects your EMI and the total repayment amount. For instance, when you borrow ₹1 Lakh at an interest rate of 14% p.a., your EMI changes depending on the selected tenure, as illustrated below:

Disclaimer: Note that these are approximate values and are meant only for illustration. For actual EMI values, reach out to your lender.

In addition to your EMI and interest, additional charges may also apply to your loan. Refer to the details below for a comprehensive overview: 

Disclaimer: The above-mentioned details are subject to change at the lender’s discretion.

Let’s say you have taken a business loan of ₹1 Lakh at an annual interest rate of 12% for 12 months. To calculate your business loan EMIs, you need to use a standard mathematical formula. This formula considers the loan amount, interest rate, and tenure. The formula is:

EMI = P × R × (1 + R)n / [(1 + R)n – 1]

where: 

• P = Principal loan amount

• R = Monthly interest rate (Annual interest rate / 12 / 100)

• N = Loan tenure in months 

The monthly EMI, in this case, would be approximately ₹8,885. You can also use online business loan EMI calculators to generate quick and error-free results.

The eligibility criteria for a ₹1 Lakh loan for a small business may differ from one lender to another. However, here are some common requirements you may be asked to fulfil to qualify for a business loan of ₹1 Lakh:

1. Age: Above 21 years

2. Citizenship: Must be a citizen and resident of India

3. CIBIL Score: Should have a good CIBIL score of 700 or above

4. Eligibility: Self-employed professionals/non-professionals (e.g., traders, manufacturers)

5. Business Type: Partnerships, LLPs, and private limited companies

6. Experience: Minimum 1 to 3 years of business experience

7. Income: Annual revenue must be at least ₹1 Lakh, as per ITR

After fulfilling these criteria, you may have to submit some essential documents. The documents are as follows:

You can apply for a ₹1 Lakh business loan through the website. You can also download the Bajaj Markets app. Follow these simple steps:

• Step 1: Click on the ‘Apply Now’ option on this page

• Step 2: Provide your personal and business details

• Step 3: Enter your preferred loan amount and tenure

• Step 4: Submit the application form

Following this, a representative will reach out to you for further verification and loan approval.

A ₹1 Lakh business loan at a 14% interest rate for 6 months comes with the following amortisation breakdown:

Disclaimer: Note that these are approximate values and are meant only for illustration. For actual EMI values, reach out to your lender.

Your CIBIL score indicates your credit reliability. Here is how taking a business loan can affect your score and overall financial standing:

• Pre-approval Impact

Before a business loan is approved, lenders usually conduct a hard inquiry to assess a business’s creditworthiness. A single hard inquiry does not impact the CIBIL score significantly; however, multiple inquiries within a short period indicate credit-hungry behaviour.

This may reduce the chances of approval and can slightly lower the score. Hard inquiries remain visible on the CIBIL report for up to two years.

• Post-repayment Impact

Once the loan is approved, maintaining a strong repayment history is essential. Delayed EMIs or loan defaults negatively affect the credit score. Repeated missed payments are recorded in the credit report and result in a lower score.

High credit utilisation and holding several outstanding loans also weaken the repayment capacity over time.

You can use the ₹1 Lakh loan for a small business in several practical ways. Here are some common uses:

• Buying Equipment or Tools

You can use funds to purchase essential machines, tools, or technology that help you start, run, or improve your business operations. Whether you need updated software, reliable hardware, or specialised tools for your trade, having the right equipment can increase efficiency and support growth.

• Managing Working Capital

Use your funds to manage everyday business expenses. This includes covering rent, utility bills, staff salaries, or purchasing stock to keep your shelves full. Maintaining healthy working capital ensures you can keep your business running smoothly without interruptions.

• Marketing

Invest in promoting your brand to attract more customers. You might run online advertisements, build a professional website, manage active social media campaigns, or distribute printed materials such as flyers or brochures. Effective marketing helps you build visibility and drive sales.

• Handling Emergencies

Set aside funds as a financial safety net to deal with unexpected costs. These may include emergency repairs, last-minute supply issues, or other urgent situations that could disrupt your operations. Being prepared allows you to respond quickly and minimise the impact on your business.