Business Loan For Startups
India is revolutionising its business spectrum through innovative startups, contributing positively to India’s economic growth. Currently, India is ranked third worldwide in the startup ecosystem, with over 75,000 registered startups. However, these companies need constant capital to fund business operations.
Like other businesses, startups also require high capital to invest in various aspects, such as working capital, advertisement, marketing, manufacturing, acquisition, or expansion. Hence, business owners look for the ideal startup business loan to fulfil their capital requirements. Business loans for startups allow entrepreneurs to raise immediate capital to cover their startup expenses.
IIFL Finance offers comprehensive business loans for startups with attractive interest rates where business owners can raise Rs 30 lakh within 48 hours.
Startup Loan EMI Calculator
Features and Benefits For Startup Business Loans
Startups are capital heavy. They need to market and promote the company to differentiate their business from other startups. Therefore, they take startup business loans that can assist in achieving their goals. Here are the features and benefits of a loan for a startup:
Eligibility Criteria For Startup Business Loans
Lenders such as NBFCs or banks review business loans for startup applications based on their set eligibility criteria. If you are looking to avail a startup loan for a new business, you must fulfil the listed-below startup loan eligibility criteria:
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You have an established business operating for more than six months at the time of application.
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The minimum turnover is Rs 90,000 in the last three months from the time of application.
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The business does not fall under any category or list of blacklisted/excluded businesses.
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The office/business location is not on the negative location list.
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Charitable organisations, NGOs, and trusts are not eligible for a business loan.
Documents Required For Startup Loans For Business
The approval of a loan for a startup requires completing KYC verification, where the business owner has to submit certain documents. Here are the documents required for a startup loan for a new business:
Business Loans For Startups Interest Rates
Startup business loans must be repaid by business owners with interest within the loan tenure. These interest rates depend on several factors, such as the desired loan amount, the business financials, credit score, turnover, loan tenure, etc. The factors result in different interest rates for various types of startup business loans.
Here are the business loans for startup interest rates:
| Rate of Interest | 12.75% - 44% p.a. |
|---|---|
| Loan processing charges: | 2% - 4% + GST*( Additional Upto ₹500 will be charged as Convenience Fees ) |
| Cheque/ ACH Return charges: | ₹500/ + GST* per instance |
| Cheque/ ACH swapping charges duplicate no- dues certificate: | ₹500/ + GST* per instance |
| Penal Interest | 24% per annum |
How To Avail Startup Business Loans?
Here is the process to avail of business loans for startups in India.
Business Loan for Startups FAQs
You can avail of two forms of business loans for startups: Term Loans and Working Capital Loans. Working capital loans are short-term whereas term loans are long-term. Furthermore, there are government startup loans offered by the Indian government.
You can get business loans for startups in India by finding an ideal bank or NBFC which offers such loans with affordable interest rates.
Yes, for the approval of the startup loan, it is mandatory to have a business plan before applying.
The venture must be operating for a minimum of six months before applying for business loans for startups.
With IIFL Finance’s business loans for startups, you can avail of a maximum loan amount of Rs 30 lakh.
There are numerous government startup loans such as Mudra Loan Scheme, The Credit Guarantee Scheme (CGS), the Stand-Up India Scheme, Credit Link Capital Subsidy Scheme, etc.
Yes, IIFL Finance offers business loans for startups without collateral.
Among various types of loans, such as personal loans, and gold loans, a dedicated startup business loan can be the best for a startup business in India.