✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now! Check Eligibility

Have you always dreamt of starting your business venture but have been deterred by the need for funds? Well, there is no better time than now. Leading lenders offer startup business loans without collateral. Also known as unsecured loans, you do not have to support the loan application with any asset like machinery, equipment, gold, goods or property. Access to a collateral-free loan opens up immense possibilities for startup businesses. The loan allows you to set up and grow your business easily, and you do not have to be hassled with the need to keep your assets at stake.

Features and Benefits of Business Loans for Startups


Startup business funding offers flexible repayment terms and tenures to new business owners. 

Quick Availability

Startups get fast access to capital from most lenders to unlock growth and opportunities.

Unsecured Loan

New ventures can safeguard high-value assets as these loans are available without collateral.

Hassle-Free Documentation

The documents required to apply for small business startup loans are minimal. 

Business Loans for Startups by the Indian Government

Here are some of the top startup business loans by the Indian government.

1. Pradhan Mantri Mudra Yojana (PMMY)

This scheme offers an MSME startup loan classified as MUDRA (Micro Units Development and Refinance Agency). Financial institutions, including regional rural banks, MFIs and NBFCs, can offer this startup funding solution.

Traditional or regional craftsmen, vegetable sellers, machine operators, store owners, service firms, etc., can all apply for a Mudra loan.


The startup loan amount ranges from ₹50,000 to ₹10 Lakhs and is categorised as Shishu, Kishor, and Tarun, depending on the loan amount. Moreover, women business owners can avail of this loan at discounted interest rates, making the loan more affordable.

2. Sustainable Finance Scheme

Started to support ventures that work towards sustainable development and clean, energy-efficient operations, the scheme is also run by SIDBI. As such, an entrepreneur working towards sustainability through their venture can apply for these startup loans. 


Under this scheme, you can get financing of up to ₹1.5 Crores with a repayment tenure of up to 6 years. 

3. Credit Guarantee Scheme (CGS)

As the name suggests, the scheme aims to extend credit and financing to the MSME sectors. Established and emerging MSMEs engaged in service or manufacturing operations can apply for this MSME loan for startup businesses. 


However, businesses engaged in Self Help Groups (SHGs), agribusiness, academia, retail, etc., avail financing under this scheme. Under this plan, run by the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), you can avail up to ₹5 Crores as startup business funding.

4. Standup India

The primary aim of this scheme is to offer business loans for startups headed by women and people belonging to the SC/ST category. Standup India Under this scheme, you can get financing of up to ₹1 Crore as startup funding. 


However, to qualify for this scheme, you should have a greenfield enterprise. This means that it should be a first-time venture in the trading, manufacturing, and service sector. 


Apart from the above, there are other government schemes that offer an MSME loan for startup businesses. These schemes include:

  • Financing through NABARD (National Bank for Agriculture and Rural Development)

  • Startup India Scheme

  • Bank Credit Facilitation Scheme

  • Udyogini

  • Coir Udyami Yojana


Remember to check the details of the scheme before applying to ensure that you get seamless access to the funds you need.

Read More

Eligibility Criteria of Business Loan for Startups

To apply for a startup loan, you must meet the following eligibility criteria:

  • You must be an Indian citizen

  • You must be a self-employed individual

  • Your age must be between 21 to 70 years

  • You must have a CIBIL score of at least 700

  • The business must have a vintage of at least 3 years

  • The business must meet the minimum annual income terms 

  • The business must not be in the blacklisted or excluded category


You can check your startup business loan eligibility with the help of the Business Loan Eligibility Calculator. Keep in mind that the above eligibility criteria may vary depending on the lender you apply with. 


Check the lender’s website before applying for startup business funding to ensure that you meet all the criteria. 

Read More

Documents Required for Startup Business Loan

Here are the documents that you need to apply for a startup business loan:

  • 2 passport-size photographs

  • Proof of Identity: Aadhaar card/ Driving licence/ PAN card/ Passport/ Voters ID

  • Address proof:  Aadhaar card/ Passport/ Utility bills/ Lease Agreement

  • Signature Proof: PAN Card/ Passport/ Bank verified signature

  • Bank statement for the last 6 months

  • ITR form and certified copies with income computation, balance sheet, and Profit and Loss (P&L) statement for the last 2 years

  • Sole Proprietorship Declaration or authenticated copy of Partnership Deed

  • Certified copy of Memorandum and Articles of Association

How to Apply for a Startup Business Loan

Most lenders allow you to apply for an instant business loan for Startup using online as well as offline modes. To apply for business loans for startups, follow the steps given below: 

  • Step 1: To apply online, visit the lender’s official website and to apply offline, visit the lender’s nearest branch.

  • Step 2: Fill up the application form and submit the necessary documents.

  • Step 3: The lender will contact you to assist and understand other related aspects.

  • Step 4: The loan application is then evaluated before it is approved.

  • Step 5: After approval, the funds get transferred into your account quickly.

Things to Consider When Applying for a Startup Loan

If you are seeking loans for your startup, you need to consider the following points:

  • Provide a precise estimation of the available working capital

  • Create a clear, thorough, and workable business plan

  • Your business plan should be able to explain where you intend to spend the funds

  • Include a summary of the company's aims and objectives

  • Provide a graph of expected profits and expansion of the venture

Business Loans for Startups From Banks and Financial Institutions

Our Partners
sort list
Minimum Interest Rate
sort list
Maximum Loan Amount
sort list
Maximum Loan Tenure
sort list

Ambit Finvest

20% p.a.

₹50 Lakhs

36 months


AYE Finance

29.50% p.a.

₹2 Lakhs

30 months


Bajaj Finance Limited

9.75% p.a.

₹30 Lakhs

72 months



18% p.a.

₹50 Lakhs

36 months


IIFL Finance

16.50% p.a.

₹30 Lakhs

48 months



24% p.a.

₹3 Lakhs

60 months



22% p.a.

₹30 Lakhs

36 months



14% p.a.

₹2 Lakhs

12 months



19.20% p.a.

₹35 Lakhs

36 months



20.5% p.a.

₹35 Lakhs

36 months


Credit Saison

22% p.a.

₹10 Lakhs

36 months


U GRO Capital

26% p.a.

₹2 Lakhs

12 months

View More

Disclaimer: The rates mentioned above are subject to constant change. You must always check with the lender before applying. The final interest rate applicable to you will also depend on factors such as your repayment tenure, age, monthly income, and CIBIL score.


Before applying under any scheme or with any lender, carefully assess the terms and conditions of the loan. This will enable you to understand which is the best deal and ensure the growth of your venture. Visit the Bajaj Markets website to compare small business loans for startups and apply with ease.

FAQs on Business Loans for Startups

What are the other fees and charges associated with a business loan for startups?

Apart from the interest rates, business loans for startups also have other charges such as processing fees, bounced EMI fees, prepayment or foreclosure fees, and more. You can check the list of applicable charges on the lender’s website.

How would I know if I am eligible to avail startup loans?

To know your eligibility, you can check the lenders’ website. Some of the generally accepted criteria for startup loans include being an Indian citizen between 21 and 65 years of age. You must have a CIBIL score of at least 700. Along with that, your company must have a vintage of at least two years, and it should meet the minimum revenue requirements.

How to get a loan for a small startup?

The best way to get a business Startup loan is by applying at the National Small Industries Corporation or NSIC. Alternatively, you can check with the lenders to assess the small business loan offers available. 

Are there any government loans for a startup business?

Yes, there are numerous government startup loans for new business, such as National Bank for Agriculture and Rural Development (NABARD), National Small Industries Corporation Subsidy, Credit Link Capital Subsidy Scheme, Stand Up India Scheme, and Mudra Loan Scheme, among others.

How hard is it to get a startup loan in India?

Your access to startup loans depends on the viability and current performance of the company. This is because the performance and viability of the loan are key factors that lenders assess. However, there are many lenders that offer easy and quick access to funds.

Is it mandatory to have a business plan before availing startup loans?

Yes, you must have a business plan before applying for a startup loan. To offer startup loans, lenders look at the business plan, objectives, and goals to assess the viability of your venture and their feasibility in making the funds available. Lenders will also assess how and where you will use the funds, so mention that in your plan.

What is the purpose of business loans for startups?

A business loan for a startup primarily supports the capitalisation of a firm that you want to launch. Getting a loan to launch a new business would help your operations by enabling you to get the needed equipment and machinery. 

Loan Offer
Download App