Business Line of Credit (LOC)

A Business Line of Credit (LOC) is a flexible financing option designed to support businesses with varying financial needs. It provides access to a pre-approved credit limit, allowing businesses 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. Businesses can easily apply for a business line of credit through a simple online process. It offers competitive interest rates and flexible repayment terms for quick and reliable access to funds.

Here’s a breakdown of the interest rates and charges for a business line of credit on Bajaj Markets:

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.

Here’s everything you need to know about the key features of a business line of credit:

Quick Borrowing

Businesses can access funds instantly, often up to ₹2 Lakhs, to address immediate financial requirements.

Zero Processing Fee

Get a business line of credit online with no additional processing charges, ensuring cost-effectiveness.

Conversion to Loan

Convert the credit utilised into an EMI-based loan with flexible tenures such as 3, 6, 9, or 12 months.

Minimal Documentation

Applications require only essential personal and professional documents, which can be submitted online.

Grace Period

Borrowers can often enjoy a grace period of up to 5 days each month. This allows them to pay dues without facing penalties.

Here’s a quick overview of how a business LOC works:

Credit Limit Approval

Lenders evaluate the business’s creditworthiness, financial stability, and collateral (if required) to approve a credit limit. This represents the maximum amount the business can borrow at any given time.

Accessing Funds

Once approved, businesses 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.

Interest Accrual

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 the business borrows ₹2 Lakhs, the lender charges interest only on the ₹2 Lakhs.

Repayment and Revolving Feature

As repayments are made, the credit limit is replenished, allowing businesses to borrow again without reapplying. This revolving structure gives you continuous access to funds. It is a reliable tool, like a business line of credit loan.

Draw and Repayment Periods

A business line of credit generally has two distinct phases:

• Draw Period: Businesses can withdraw funds as needed during this phase

• Repayment Period: Once the draw period ends, businesses repay the outstanding balance, with no further withdrawals permitted

To qualify for a business credit line, applicants must meet eligibility criteria demonstrating business stability and financial health.

Business Type

The business must be a proprietorship, partnership, private limited company, or other recognised legal entity

Business Vintage

Most lenders require the business to have been operational for at least two years to demonstrate stability.

Age of Applicant

The applicant should typically fall between 21 and 65 years.

Self-employment Status

The applicant must be self-employed and actively involved in managing the business.

To get a business line of credit, applicants must provide the following documents:

KYC Documents

• PAN card

• Aadhaar card or any government-issued identity proof

Business Proof

• Udyam Aadhaar certificate

• GST registration or equivalent business registration documents

Additional Business Proof

• Financial statements

• Bank statements

• Other documents showcasing the business's operational and financial health

Here’s a comparison between a business line of credit and a business loan:

Choosing the right platform for a business line of credit ensures smooth access to funds and favourable terms. Bajaj Markets provides flexible and reliable financing solutions tailored to your needs.

Here is what makes it a trusted choice for you:

Quick and Easy Application

Get an easy business line of credit with minimal documentation and a hassle-free online application process.

Instant Access to Funds

Upon approval, businesses can access funds quickly, ensuring no delays in meeting their financial needs.

Competitive Interest Rates

Bajaj Markets provides access to lenders that offer attractive interest rates, helping businesses reduce borrowing costs and manage cash flow efficiently.

Flexible Repayment Options

Businesses can pay back the borrowed money based on their financial ability. Repayment terms are flexible and can meet different needs.

Applying for a business line of credit on Bajaj Markets is simple and hassle-free. Just follow these steps:

1. Click ‘Apply Now’ on this page

2. Fill out the form with your essential personal and business information to initiate the process

3. Choose a lender from the options available on Bajaj Markets that best suits your financing needs

4. Specify the required credit amount and select a repayment tenure that aligns with your business goals

5. 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.