₹10 Lakh Business Loan

Planning to expand your small business, open a new branch, or invest in high-value machinery? For businesses ready to take the next big step, substantial funding is key. Practical financial solutions like a ₹10 Lakh business loan may address such needs. 

Here’s how:

• For a 36-month tenure at an interest rate of 14% p.a., you would have to pay an EMI of ₹34,178, with the total interest coming to ₹2,30,395

• Alternatively, at a 14% annual interest rate, extending the loan tenure to 60 months may increase your total interest payment to ₹3,96,095 but lower the EMI to ₹23,268

So, shorter tenures help minimise overall interest costs, and longer ones make monthly repayments more manageable.

Since no collateral is required, and documentation is minimal, you can get a ₹10 Lakh business loan quickly through lenders on Bajaj Markets. This gives you the flexibility to fund significant capital investments or scale operations on terms that suit your business.

If you are looking for a ₹10 Lakh loan for your business, you can explore different options on Bajaj Markets. Refer to the following table to compare interest rates, maximum amounts and tenures:

The duration of loan repayment directly influences the EMI amount and total repayment cost. Consider this example to understand how loan tenure impacts EMI if the borrowed sum is ₹10 Lakhs at an interest of 15% p.a.

In addition to the EMI on a ₹10 Lakh business loan, you may also have to pay certain fees and charges as per the scenarios. Here are the typical charges you may incur when taking a ₹10 Lakh business loan:

Suppose you took a business loan of ₹10 Lakhs from Bajaj Markets. Consider the interest rate as 15% p.a. and the loan tenure of 24 months. To calculate the EMI manually, you can use the following formula:

EMI = [P x R x (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

Using the formula, the EMI will be ₹48,487. The total interest will be ₹1,62,680, and the total amount payable will be ₹11,63,680.

To get a business loan of up to ₹10 Lakhs, you need to meet certain eligibility requirements. These include:

1. Age: You must be over 21 years

2. Citizenship: You need to be an Indian 

3. Credit Score: You must have a good CIBIL score

4. Eligibility: Self-employed professionals (like doctors) and non-professionals (like traders or manufacturers)

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

6. Experience: At least 1 to 3 years of business experience

7. Income: Annual income of over ₹1 Lakh as per ITR

Along with that you need some documents for the application and verification process. Keep the following documents ready when applying for a ₹10 Lakh business loan:

Getting a business loan on Bajaj Markets, through website and app, is quick and easy. Just follow these simple steps:

1. Tap on the ‘Check Eligibility’ button on this page

2. Provide your basic details

3. Enter the loan amount and choose your repayment tenure

4. Submit the form. The lender will verify your details and initiate further processing

Before applying for a ₹10 Lakh business loan, understanding the amortisation schedule helps you check affordability and plan repayment efficiently. The amortisation schedule for a loan of this amount taken at 15% p.a. for 6 months would look like this:

Your CIBIL score shows how creditworthy you are. Here's how a business loan can affect it:

• Pre-approval Impact

When you apply for a business loan, the lender checks your credit report to evaluate your financial behaviour. This kind of hard enquiry may lower your CIBIL score slightly. But this is usually temporary.

• Post-approval Impact

Maintaining good credit behaviour by paying your loan on time indicates that you are a reliable borrower. It will help increase your credit score. Maintaining a good credit score improves your chances of securing future loans on favourable terms.

A ₹10 lakh business loan can be a powerful financial tool to support various stages and needs of a business. Here are different ways in which you can use the loan amount:

• As a Working Capital

Businesses with seasonal cash flow shortages or delays in customer payments can use these funds to manage day-to-day operations like payroll, rent, and utility bills. This ensures smooth functioning even during off-peak seasons or periods of delayed revenue.

• For Inventory Purchase

Retailers or manufacturers can use these funds to stock up on raw materials or finished goods. Having sufficient inventory on hand helps meet customer demand promptly and avoid lost sales.

• For Equipment Purchase

A manufacturing unit can use the fund to buy upgraded tools or machinery. Investing in modern equipment can boost productivity and reduce operational costs over time.

• For Hiring and Training

If you are looking to scale operations, a business loan can help you recruit skilled employees and provide training. This investment in human capital can significantly enhance service quality and operational efficiency.