More power to you if being an entrepreneur and having your own start-up is your goal. But, for any start-up, the unavailability of start-up capital could be a major setback. Sometimes, even the good start-ups with an effective business model do not reach their potential due to a lack of funds. This is where a start-up business loan can be helpful.
This article gives you complete details about a business loan for a start-up, its features and benefits, eligibility criteria, documents required and how to apply. Read on!
Some major benefits of startup business loans include the following:
The eligibility criteria for obtaining a startup business loan are as follows:
Note that these requirements vary across different lenders.
Business owners willing to take loans should submit the following documents to the concerned financial institution.
Note that some financial institutions may require additional documents.
Business owners should first calculate the EMI amount for their desired principal level by using an online business loan EMI calculator. After that, they can apply for a startup business loan by following these steps:
Step 1: Open the lender’s official website and click on ‘Apply Now’.
Step 2: Fill in the personal information.
Step 3: Enter the loan amount and EMI
Step 4: Click Confirm and wait for the confirmation message.
Applicants should make sure that they have the required documents ready before initiating the application procedure. In the case of the offline procedure, the applicant needs to visit the NBFC or bank’s nearest branch and submit the duly filled application form along with the required documents.
Some leading banking institutions providing loans to startups are as follows:
The Government of India provides loans to small businesses, especially in the MSME sector, at a low cost. Some institutions that provide start-up loans for new businesses are as follows:
Entrepreneurs should consider some basic factors that would influence their loan application. Such factors include the following:
To make money, a business owner will have to spend money. Business enterprises need capital to purchase machinery, expand operations, or for research and development. Obtaining a start-up business loan from banks is the easiest and most flexible way to raise funds and meet the various requirements.
Ans: Numerous financial institutions provide loans for small businesses subject to certain conditions. The application process can be initiated from the official website of that institution, mobile application or by being physically present.
Ans: Entrepreneurs can avail of start-up business loans offered by the Indian government without any collateral. These include loans provided by Mudra Yojana, Startup India, etc.
Ans: Lenders can offer financial assistance even with bad credit history at a high-interest rate or for a short tenure.
Before you go…
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.