Business Loan

Q: ✔️What is the maximum tenor for a business loan?

The maximum tenor offered for a business loan is typically 60 months. However, this aspect depends upon the lender and your loan profile.

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

A Business Loan is an unsecured loan that can be used for a new or existing enterprise. Whether it is expanding your business to new locations, purchasing advanced machinery, hiring new staff, or clearing all your debts, a Business Loan is a great choice. Today, many banks and non-banking financial companies (NBFC) offer quick business loans at competitive interest rates. If you are eligible and have the required documents in place, you can enjoy the best-curated deals and get instant approval on Business Loan.

Our Business Loan Partners

Our Partners	Interest Rate Range	Maximum Tenure
Bajaj Finance Limited	17% onwards	72 months
Lendingkart Finance Limited	15% onwards	36 months
KreditBee	15% onwards	9 months
FlexiLoans	12% onwards	36 months
IIFL Finance	18% onwards	60 months
InCred	20% onwards	48 months
AYE Finance	28% onwards	36 months
Indifi	16% onwards	36 months
Ambit Finvest	20% onwards	36 months

*The interest rate charges are subject to constant change as they are affected by several factors. Please check the prevailing interest rate with your lender before applying.

Features and Benefits of Business Loan

Access to a High and Affordable Capital

Bajaj Markets provides access to high-value business loans that range up to ₹50 Lakhs. Moreover, the low-interest rates make business loans the perfect choice for short-term, intermediate-term, and long-term funding requirements.

Flexi Loan Facility

This facility lets you withdraw funds as per your needs and preferences. Here, the interest is only charged on the withdrawn amount.

Hassle-Free Unsecured Loans

You can get instant approval on business loans, depending on your eligibility.

No Collateral or Security Needed

The Bajaj Markets offers collateral free business loan. This essentially means that you don’t have to pledge any asset to secure your loan. The collateral-free loan enables you to get funding with much ease.

Exciting Offers

Personalised pre-approved offers and value-added services could make your experience of availing of a business loan even more amazing.

Disclaimer: Terms and conditions apply to the above-mentioned benefits, and these may vary based on the lender.

Eligibility Criteria for Applying a Business Loan

To be eligible for a business loan, you must meet the following conditions:

You must be a self-employed individual
Self-employed professionals include doctors, chartered accountants, etc., and self-employed non-professionals include traders, manufacturers
You must be between 25-65 years of age
Business units such as partnerships, limited liability partnerships, and private limited companies can apply for a business loan
You must have a minimum business experience of 3 years in the current business and at least 5 years of business experience on the whole
The minimum annual income (ITR) must be ₹1.5 lakh per annum

Business Loan Fees & Interest Rates

Bajaj Markets provides access to well-curated new business loans that attract a nominal rate of interest. Thus, you enjoy affordable EMIs throughout the loan tenure. Follow the listed table to view the interest rate and charges applicable on a business loan:

Interest Rates, Fees & Charges Details
Interest Rate	Starting from 12% p.a.
Processing Fee	Up to 4.72%
Loan tenure	Up to 72 months
Pre-closure Charges	4% of principal outstanding amount + GST
Eligibility Criteria	₹ 90,000 turnover for 3 months
Loan Amount	₹ 25,000 to ₹50 Lakhs
Instalments	Flexible Monthly/Bi-weekly

How to Apply for Business Loan Online

Applying for a new business loan online on Bajaj Markets is now really simple. Just follow these steps:

Visit the Online Platform: Visit the Bajaj Markets website, select the category titled ‘Business Loans’ in the ‘Loans’ section and click on ‘Apply Now.’
Online Form Filling: Fill in your personal and business details.
Select Your Lending Partner: From the list of loan offers, select a business loan from your preferred partner.
Specify Loan Details: Choose your preferred loan amount and repayment tenure.
Required Documents: Upload the scanned copies of all the required documents.
Approval & Disbursal: Submit your application; post verification and approval, the money would be disbursed to your account.

Documents Required for a Business loan

Below we have provided a list of documents required to apply for small business loans in India.

Identity Proof: PAN card/passport/driving licence/Voter’s ID
Address Proof: Aadhaar card/passport/utility bills/lease agreement
Bank statement for last 6 months
ITR form in addition with certified copies with details such as 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

3 Unique Variants of our Business Loans

You can avail three unique variants of business loan on Bajaj Markets. Here is a closer look at each of these types of business loans and what they entail.

Term Loan

This is one of the most common types of business loans. Both small businesses as well as larger and more established entities may opt for this loan variant. Here, you borrow the funds needed and repay the borrowing over a fixed term.

The repayment is made in the form of Equated Monthly Instalments (EMIs), which include an interest component as well as a principal component. You can repay the loan before the tenure if you wish to, but you may incur foreclosure charges for the same.

Flexi Term Loan

In this kind of business loan, you can pay off a significant portion of your borrowing as and when you have the funds. Alternatively, if your credit limit is not fully utilised, you can even borrow additional funds as and when your business needs them. The interest due will be automatically adjusted throughout the loan tenure, based on the amount of principal outstanding. Your EMI will include both the principal component as well as the interest adjusted as needed.

Flexi Hybrid Loan

A flexi hybrid loan is very similar to a flexi term loan. The primary difference, however, is how the EMIs are constituted. In a flexi hybrid loan, during the initial phase of the repayment, your EMIs will only consist of the interest applicable on the loan. After a certain amount of the interest is repaid, the EMIs will start to include both the interest and the principal components of your business loan.

Types of Business Loans

As per the business needs and requirements, various types of business loans are available.

1. Start-up Business Loans: As an aspiring entrepreneur, if you want to start your business venture and need financial assistance, you can always apply for a startup business loan. You can also avail of this loan if you wish to expand the operations of your start-up enterprise.

2. Working Capital Loan : With a working capital loan, self-employed individuals can manage the daily expenditures of the business. This includes managing steady cash flow, purchasing machinery, and paying short-term debt. In a nutshell, availing this loan will help you take care of finances associated with day-to-day operations.

3. Machinery Loans : A machinery loan can help you with expenses related to your business equipment. With this loan, you can purchase new machinery, upgrade existing ones, or even repair faulty equipment.

4. SME and MSME Loans : With the help of an MSME loan, you can finance business requirements like revamping your company’s infrastructure, purchasing machinery or raw materials, or expanding your business operations in general.

5. Business Loan for Women : Most financial institutions offer business loans for women that can help female entrepreneurs become self-sufficient and enable the growth of their enterprises.

6. Term Loan : A term loan is a popular form of business finance offered by leading lenders across the country. Depending upon the lender's terms, it could either be secured or unsecured. The loan is typically provided for a period that ranges between 1 to 20 years. The amount offered is majorly driven by the credit history of the business.

How to Calculate Business Loan EMI?

Business loan EMI calculation can be done using the following basic formula, i.e.

E = P x r x (1+r)n/(1+r)n-1

Here,

‘E’ stands for EMI

‘P’ represents the loan amount

‘r’ stands for the monthly interest rate and

‘n’ represents the duration of the loan

On Bajaj Markets, you can find a business loan EMI calculator. This tool enables you to calculate the EMI amount through the web interface. This EMI calculator allows you to understand the breakdown of each component, including the interest and principal loan amount. Simply put, you can effectively undertake your financial planning based on the computations.

Reasons To Apply For a Business Loan

If your business is in need of funds and you want to avail a quick business loan, apply online for this facility easily today. However, if you’re not sure about getting a business loan for your venture, here are some reasons why this kind of funding may be the right choice.

Increased Working Capital

Working capital is the term used to refer to the funds you have to meet your business’s short-term obligations. There are special working capital business loans available for this very purpose. By availing this facility, you can improve liquidity in your business and meet your working capital requirements easily.

Business Expansion

Over time, as you scale up your business, you will need to expand your venture in different ways. This includes the launch of a new product or service, the opening of a new branch, the purchase of new equipment and machinery as well as renting out new office spaces. All of this requires additional funding, and business loans can help you with this.

Credit Building

Business loans can also help with credit building for the future. Each time you repay the EMIs due on your business loan promptly, you give your business credit score (or personal credit score, in case of a sole proprietorship or the likes) a boost. This will make it easier for you to obtain more credit facilities for your business in the future.

Improved Business Marketing

Marketing is another aspect of business that requires a sizable budget. To get word of your business out to your target audience and to achieve higher lead conversion, you need a robust marketing plan. Business loans can give you access to the funds needed to promote your business better and expand your customer base.

Upgradation of Your Workforce

With a business loan, you can also expand and/or upgrade your workforce to meet the growing needs of your business. The funds borrowed can help you hire new recruits or pay existing employees a higher salary when a hike is due. It can also fund the upskilling or reskilling of your workforce as and when needed.

Dos and Don'ts of Business Loans

Here are some factors that you must consider when getting a business loan online:

Dos	Don’ts
Stay prepared with your documents and business plan	Make multiple loan applications
Conduct a comparative lender review	Fall prey to low cost loans without reading the terms and conditions
Borrow only the required amount	Create a real business budget
Estimate your expenses appropriately	Pay off your loan too quickly

Quick Links

Govt Business Scheme

FAQs on Business Loan

A business loan is borrowed capital that can be used to support an existing or new business. The funds can be used to increase employee strength, expand the enterprise, purchase equipment, build working capital, and more. A business loan is an unsecured loan that can be used to cover the expenses involved in running/growing a business. With most lenders, a business loan can be availed without pledging an asset as collateral.

To get a business loan, you must have a credit score of at least 685. The higher your score, the better are your chances of getting a business loan at negotiable rates.

The maximum tenure offered for a business loan is typically 60 months. However, this aspect depends upon the lender and your loan profile.

Yes, a business loan is unsecured or collateral-free. This essentially means that you can acquire the business loan without having to pledge an asset as security.

The minimum turnover required to qualify for getting a business loan can vary based on the criteria set by different lenders. Typically, it can range from around ₹10 lakhs to around ₹40 lakhs or so.

Any entity engaged in a legal business in India can avail a business loan if it qualifies for one, depending on the eligibility criteria in place. This includes entities like partnership firms, one person companies, private companies, public companies, as well as government-owned subsidiary companies. Furthermore, there are also small business loans for self-employed individuals, sole proprietary concerns and other micro, small and medium-sized business entities.

The minimum and maximum limits on business loans vary from one lender to another. Broadly speaking, if you opt for a bank loan for business funding, the minimum amount you can borrow may range from around ₹1 Lakh to ₹3 Lakhs. The maximum amount, on the other hand, can be as high as ₹25 Lakhs to ₹50 Lakhs or more. Since this is quite a wide range, it is best to check the details pertaining to the lender you opt for.

As a business owner, you have your own personal credit as well as your business’s credit. If you guarantee a loan personally, it could affect your personal credit. Or, if you are a small business owner, it is likely that the loan will be offered based on your personal credit. As a result, it may affect your credit profile. On the other hand, for entities like companies, the business’s credit alone matters.

Latest News On Business Loan

By 2031, the Market for Unsecured Business Loans Is Expected to Grow at a CAGR of 11.7% And Reach $12.5 Trillion

According to the report published by Allied Market Research, the world-wide unsecured business loan industry was valued at approximately $4.3 trillion in 2021 and is expected to grow further to $12.5 trillion by 2031, thereby witnessing a 11.7% CAGR from 2022 - 2031. This report offers an in-depth look at the market trends, value chain, competitive scenario and regional landscape. The working capital loan segment is expected to dominate the loan market during the period of forecast.

- June 29, 2023

Business Loans Without Security From 2022 to 2027, the Market Will Grow by USD 2,895.17 Billion, with American Express Co. and Bajaj Finserv Ltd. emerging as Major Market Growth Contributors

The unsecured loans industry is growing at 10.13% CAGR, with an expected net worth of 2,895.17 billion dollars by 2027. Banks and NBFCs offer digital loans with minimal procedure and instant fund disbursal.

Bajaj Finserv, American Express Co., Deutsche Bank AG, etc., are emerging as notable contributors to economic growth.

The unsecured loans will witness the forecast growth as they are short-term, collateral-free loans and are digitally accessible. The quick procedure and flexible payment method make it a viable option among customers.

- May 25, 2023

RBI Floats Circular Draft to Ensure Proper Disclosure of Penal Charges and Interest

In an effort to promote fair lending practices, the Reserve Bank of India (RBI) has floated a circular draft - “Fair Lending Practice - Penal Charges in Loan Accounts.” The main objective of this circular is to ensure that all regulated bodies are transparent in disclosing all applicable interest and penal charges. RBI is focused on preventing regulated entities from using penalties as tools to revenue enhancement. RBI has invited stakeholders to comment on the same on or before 15 May, 2023.

- April 25, 2023