Today, a majority of lenders offer startup business loans and these give aspiring entrepreneurs the financing they need to get their ventures off the ground. The funding can be used to fulfil all the requirements of establishing the business.
To learn about a startup loan for a new business, how to get a startup business loan and more, read on.
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
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.
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
Here is a list of the partner lenders on Bajaj Markets that offer Business Loans for Startups:
Our Partners |
Interest Rate Range |
Max Loan Amount/ Tenure |
Avail Loan |
20% onwards |
36 months |
||
28% onwards |
36 months |
||
12% onwards |
36 months |
||
18% onwards |
60 months |
||
20% onwards |
48 months |
||
16% onwards |
36 months |
||
15% onwards |
9 months |
||
15% onwards |
36 months |
||
1.25% p.m. onwards |
72 months |
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.
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.
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.
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.
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.
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.
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.
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.