You can apply for a business line of credit up to ₹2 Lakhs on Bajaj Markets. Get flexible access to funds and use anytime for your business expenses, helping you manage cash flow smoothly and grow your business.
A Business Line of Credit (LOC) is a flexible financing option designed to support your business with varying financial needs. It provides access to a pre-approved credit limit, allowing you to withdraw funds as needed. Unlike traditional loans, interest is charged only on the amount used, making it a cost-effective solution.
An LOC for business offers flexible borrowing to manage cash flow, inventory purchases, or seasonal expenses. You can easily apply for a business line of credit online through a simple process. It offers competitive interest rates and flexible repayment terms for quick and reliable access to funds.
Here’s a quick overview of how a credit line for business works:
Lenders evaluate your business's creditworthiness, financial stability, and collateral (if required) to approve a credit limit. This represents the maximum amount you can borrow at any given time.
Once approved, you can withdraw funds up to the assigned credit limit whenever necessary. This flexibility is great for meeting short-term financial needs. It helps with buying inventory or handling seasonal cash flow issues.
The interest rate for a business line of credit is typically charged only on the utilised amount. For example, if the credit limit is ₹10 Lakhs, and you borrow ₹2 Lakhs, the lender charges interest only on the ₹2 Lakhs.
As repayments are made, the credit limit is replenished, allowing you to borrow again without reapplying. This revolving structure gives you continuous access to funds. It is a reliable tool, like an unsecured business line of credit.
A business line of credit generally has 2 distinct phases:
Draw Period
You can withdraw funds as needed during this phase
Repayment Period
Once the draw period ends, you repay the outstanding balance, with no further withdrawals permitted
Here’s everything you need to know about the key features of a business line of credit:
You can access funds instantly, often up to ₹2 Lakhs, to address immediate financial requirements.
Get a business line of credit online with no additional processing charges, ensuring cost-effectiveness.
Convert the credit utilised into an EMI-based loan with flexible tenures such as 3, 6, 9, or 12 months.
Applications require only essential personal and professional documents, which can be submitted online.
You can often enjoy a grace period of up to 5 days each month. This allows you to pay dues without facing penalties.
Here’s a breakdown of the interest rates and charges for a business line of credit on Bajaj Markets:
Partner Name |
Charge Type |
Details |
Interest Rate |
Starting at 26% p.a. |
|
Processing Fee |
Nil |
|
Conversion to Loan Charges |
Interest charged is increased to 32% p.a. |
|
Bounce Charges |
₹750 + GST |
|
Late Payment Charges |
36% |
|
Minimum Tenure |
3 Months |
|
Maximum Tenure |
12 Months |
Disclaimer: The charges mentioned above are indicative and subject to change at the lender’s discretion. Please verify the latest details with the lender before applying.
To qualify for a business line of credit, you must meet eligibility criteria demonstrating business stability and financial health.
Here are the details:
Your business must be a proprietorship, partnership, private limited company, or other recognised legal entity
Most lenders require your business to have been operational for at least two years to demonstrate stability
You should typically fall between 21 and 65 years
You must be self-employed and actively involved in managing the business
To get a business line of credit, you must provide the following documents:
PAN card
Aadhaar card or any government-issued identity proof
Udyam Aadhaar certificate
GST registration or equivalent business registration documents
Financial statements
Bank statements
Other documents showcasing your business's operational and financial health
Once you’ve gathered the required documents, submit them along with your business line of credit application for quick processing
With the online business line of credit available on Bajaj Markets, you can quickly apply from the convenience of your computer or mobile device.
Just follow these steps:
Click ‘Apply Now’ on this page
Fill out the form with your essential personal and business information to initiate the process
Choose a lender from the options available on Bajaj Markets that best suits your financing needs
Specify the required credit amount and select a repayment tenure that aligns with your business goals
Complete the application process by submitting the form online for quick processing
Once submitted, your application will be reviewed, and a representative will contact you to complete the process.
Here’s a comparison between a business line of credit and a business loan:
Aspect | Business Line of Credit | Business Loan |
---|---|---|
Definition |
A revolving credit facility where funds can be borrowed as needed |
A lump-sum loan disbursed upfront for a specific purpose |
Borrowing Limit |
Offers a pre-approved credit limit, reused upon repayment |
Fixed loan amount approved during application |
Interest |
Charged only on the amount utilised |
Charged on the full loan amount, regardless of usage |
Flexibility |
Highly flexible, funds can be withdrawn multiple times |
Less flexible, provides a one-time disbursement |
Repayment Structure |
Revolving credit with variable repayment based on usage |
Fixed EMI payments over a predetermined tenure |
Approval Process |
May involve periodic reviews of business performance |
Approved once, based on the initial application |
Tenure |
Can be ongoing or limited to a specific draw period |
Fixed loan tenure determined at approval |
Collateral Requirement |
May or may not require collateral, depending on the lender |
Often requires collateral, especially for higher amounts |
Use Cases |
Ideal for managing cash flow gaps and short-term expenses |
Suitable for large investments or long-term projects |
Here are the different types of lines of credit available:
A flexible loan option for individuals, which allows borrowing up to a set limit for personal expenses. It can be secured or unsecured.
A type of credit line secured against the equity in your home. It offers a revolving credit limit and typically lower interest rates due to the collateral.
A credit line tailored for businesses to cover short-term expenses or manage cash flow, offering flexibility in borrowing and repayment.
A type of credit that allows an individual or business to withdraw more money from their bank account than is available, up to an agreed limit, to cover short-term cash flow issues.
A credit option designed to assist students with tuition, living expenses, and other educational costs, often offered by financial institutions with favourable terms for students.
To apply for a business line of credit, you typically need:
Proof of business existence (e.g., registration documents, business license)
Financial statements, including balance sheets and profit and loss statements
Personal and business tax returns
Business bank statements
Credit history of the business and/or the business owner
The interest rate on a business line of credit can vary depending on factors such as the lender, your creditworthiness, and whether the credit line is secured or unsecured. On Bajaj Markets, interest rates start from 26% p.a..
Some of the risks of a business line of credit include:
Repayments are made on the borrowed amount with interest, and the credit limit is replenished as payments are made.
It is best for handling short-term money needs. This includes cash flow gaps, buying inventory, or covering unexpected costs.
Most lenders require a good credit score, typically around 650 or above, but criteria can vary.
Approval timelines for a small business line of credit depend on the lender and the documentation provided, often ranging from hours to a few days.
LOC stands for Line of Credit, a flexible financing option allowing businesses to borrow up to a set limit as needed.