Startup Loan for New Business (Startup Business Loan)

A startup business loan is designed to help entrepreneurs launch, operate or expand a new business. The funds can be used for expenses such as purchasing equipment, stocking inventory, setting up operations, managing working capital and covering other initial costs.

Some lenders and government-backed schemes offer collateral-free funding to eligible startups, although approval depends on the business profile, borrower’s creditworthiness and scheme-specific conditions.startupindia.

On Bajaj Markets, you can compare startup business loan options from multiple lenders, review eligibility criteria and choose financing that aligns with your business needs, cash flow and growth plans. Consider the interest rate, processing fee, repayment tenure and other charges before applying.

Estimating your startup business loan EMI with a Business Loan EMI Calculator, helps you understand whether the monthly repayment fits comfortably within your business's expected cash flow. 

The key factors that affect your EMI are:

• Loan Amount: The amount you borrow for your startup.

• Interest Rate: The rate charged by the lender.

• Loan Tenure: The period over which you repay the loan. A longer tenure usually results in a lower EMI, while a shorter tenure increases the EMI but reduces the overall interest outgo.
   

Example

Let's assume you borrow ₹5 Lakhs for your startup at an interest rate of 14% p.a. for a tenure of 3 years (36 months). The estimated EMI would be approximately ₹17,090 per month. This means you would need to set aside around ₹17,090 every month to repay the loan over the selected tenure.

To apply for instant business loans, you must meet the following eligibility criteria:

• Nationality: You must be an Indian citizen

• Work Status: You must be a self-employed individual

• Age: Your age must be between 21 to 60 years

• CIBIL Score: You must have a CIBIL score of at least 700

• Business Vintage: The business must have been operational for at least one year.

• Business Type: Partnership, LLP or Private Limited company

• Turnover: Minimum ₹2 Lakhs

Note: 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. 

Most lenders allow you to apply for an instant business loan for a startup using online and offline modes. To apply for a loan for a startup business, follow the steps given below: 

• Step 1: Click here to start your loan application

• Step 2: Fill in your basic personal and business information in the online form

• Step 3: Provide the desired loan amount and choose your repayment tenure

• Step 4: Submit the completed form for verification

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

The Government of India has launched several initiatives to foster entrepreneurship and provide financial stability to new ventures. These schemes offer various benefits, from collateral-free credit to early-stage funding, helping entrepreneurs scale their operations.

• Startup India Scheme:
  The Startup India Scheme is a flagship initiative designed to build a strong ecosystem for innovation. It offers benefits such as tax exemptions for three years, self-certification compliances, and a faster pathway for patent registrations.

• Mudra Loan (PMMY):
  Under the Pradhan Mantri Mudra Yojana, startups can access loans up to ₹10 Lakhs. It is categorised into Shishu (up to ₹50,000), Kishor (up to ₹5 Lakhs), and Tarun (up to ₹10 Lakhs) to meet different business lifecycle needs.

• CGTMSE Schemes:
  The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides collateral-free credit to MSMEs. It encourages lenders to provide a Business Loan for startups by providing a government-backed guarantee cover in case of default.

• SISFS (Startup India Seed Fund Scheme):
  The SISFS provides financial assistance to startups for proof of concept, prototype development, product trials, and market entry. This is crucial for early-stage startups that lack the initial capital to validate their business idea.

• Atal Innovation Mission (AIM):
  AIM is an initiative to promote a culture of innovation and entrepreneurship across the country. It supports the establishment of greenfield incubation centers and provides scaling support to existing startups through specialised programs.