Start Up Business Loans In India: Everything You Need To Know

With young minds rolling out, a country like India intended to build a strong business eco-system called Startup India in 2015. And now, globally, India stages the 3rd largest start-up ecosystem with 80,000+ ventures.

The Indian government, banks, and other financial institutions made it possible for entrepreneurs and new business owners to obtain startup business loans easily, thus allowing youngsters to accomplish their funding goals in a few years.

Business Loans For Startups

Like any other business, there is a high capital requirement for startups. Start up loan for new business can be acquired for various reasons such as for working capital requirements, advertising, marketing, manufacturing, acquisition, expansion, etc. Term loans and working capital loans are the two primary types of start-up business loans offered by lenders. Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the economy, and so are the MSME Business loans.

Features & Benefits of Instant Startup Loans

This immediate capital offers attractive benefits and special features.

  • Flexible Repayment: Startup business loans are easy to obtain and have flexible repayment terms. Unlike traditional business loans, startup loans offer a greater degree of flexibility so the new business owners can concentrate on growth rather than just repaying the loan.
  • Instant loan for business: It requires minimum documentation and ensures swift disbursement of funds as soon as the loan gets approved. No prepayment fees are charged.
  • Tax Benefits: There are often tax benefits associated with business loans. For a period of three years, new entrepreneurs are eligible for tax relief.
  • Competitive interest rates: There is fierce competition between lending institutions for the attention of customers, so most lenders offer reasonable/lower interest rates on business loans. This makes it easy for new entrepreneurs.
  • If you meet the eligibility criteria, you can obtain collateral-free financing without the need for any collateral or security.
    Get a high-value loan without having to pledge any assets.

Documents required for start-up business loans in India

  • Duly fill out the application form with two passport-size photographs attached.
  • Proof of Identity: KYC documents of the applicant’s Passport, PAN card, Aadhaar card, Driving Licence, and Voter’s ID serve the purpose.
  • Address proof: Use utility bills like telephone and electricity bills or an Aadhaar card.
  • Proof of Age
  • Signature Proof
  • Proof of stable income
  • Self-drafted Business Plan
  • Business Income Tax Certificate
  • Sole/Partnership proprietor declaration
  • Proof of business ownership
  • You must procure the IT returns and financial statements for the past two consecutive years.

Eligibility Criteria for a new business loan in India

  • Applicants must be an Indian citizen.
  • Should have a CIBIL score of at least 700.
  • It is essential that the business has been operating for at least two years.
  • Your business should have a minimum income of INR 2 lakhs or an approximate turnover of Rs.90,000 in the past three months.
  • Applicant’s age can range from 21 to 65 years.

Click here for details on startup business loan eligibility.

Prior to applying for a startup business loan, it is important to take into account a few things including the interest rate, processing fees, service charges, penalties, and prepayment charges.

Wrapping Up

Are you looking for a startup business loan that will allow you to break down all barriers to your business? Buddy Loan offers customized personal loans for your business to meet your unique needs from top-trusted lenders.

Like any other business, there is a high capital requirement for startups. Start up loan for new business can be acquired for various reasons such as for working capital requirements, advertising, marketing, manufacturing, acquisition, expansion, etc. Term loans and working capital loans are the two primary types of start-up business loans offered by lenders. Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the economy, and so are the MSME Business loans.

So What are you waiting for? Apply for an instant start-up loan NOW! For more information reach us at info@buddyloan.com

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