If you are an owner of a small scale industry and need funds for expanding your business, meeting working capital requirements or simply surviving a tough economic environment, you can take a business loan for small scale industries. Nowadays, you can carry out the application process for a small scale industry business loan entirely online. What’s more, you will need to submit very few documents during the same. This article will tell you every other thing you will need to know about business loans for small scale industries.
Very simply put, a small scale industry loan is an unsecured form of credit that you can take from a lender to accomplish various business objectives. You can use the loan money to scale up your business operations, meet the working capital requirements, survive a tough economic time or to simply consolidate high interest debt. If you apply for a small scale industry loan from Bajaj Markets, you can get it at an interest rate starting at just 12% per annum.
What’s more, you can repay it over 60 months so that your equated monthly instalment (EMI) outflow does not disturb your monthly budget. Another benefit of a small scale industry business loan is that you can avail funding of up to ₹50 lakh as one. Another notable feature of a small scale industry business loan is that you will have to pay a processing fee not more than 3% of the loan amount. What’s more, you can foreclose a small scale industry business loan at no additional cost.
The eligibility criteria you must meet and the documents you will need to submit for a small scale industry business loan are as follows:
Nationality |
Indian |
Employment Type |
Self-Employed |
Business Experience |
3 years |
CIBIL Score |
650 or more |
The documents that you will need to submit while applying for a small scale industry business loan are as follows:
Know Your Customer (KYC) Documents |
Aadhaar card/PAN card/Ration card/driving licence, and proof of current address (in case you are living in a rented property) |
Business Ownership Proof |
Any kind of licences and registrations in the name of your business. |
Income Proof |
Audited profit and loss statements/Income Tax Returns of at least the past 3 years/Bank statements of at least the past 2 years. |
Some of the benefits of registering your small scale industry are:
You can easily get finance for business expansion as a registered small business owner.
Registering your small business also helps you save tax in the form of rebates, which will help you reduce the cost of running your company.
It allows you to be an active participant in government tenders and get bulk orders to scale up your business.
Permanent registration as an SSI enterprise helps you to acquire government licences and certificates to build your credibility in the industry.
You can easily adapt to a dynamic business situation, since you run a comparatively smaller enterprise.
Whether you are striving to get your company running, want to upgrade the machinery or even start a new business, you have several funding options to choose from. It is not just the small scale industries loan scheme from the Government that can come to your rescue and help you fulfil your dreams. As an alternative, you can always apply for a small business loan from Bajaj Markets. You can get business loans from lending partners of Bajaj Markets at competitive interest rates and with flexible loan repayment tenure, which can be as high as 5 years.