What is a Small Business Loan?

A small business loan, also known as a commercial loan, is loan products designed especially for investment in a business. Business loans for small businesses cater to the urgent needs that a new opportunity can throw up. These loans can either be secured by collateral or be unsecured, based on the amount needed, the type of loan and the relationship between the business and the lender.

Advantages of Business Loan

  • Faster approval of the loan
  • Less documentation required
  • No collateral if opted for an unsecured small business loan

Small Business Loan Eligibility Criteria

The criteria that you must meet before applying online for a small business loan include:

  • The borrower should be a self-employed professional, manufacturer, retailer or trader.
  • The minimum age to apply for a business loan application is 21 years.
  • The maximum age at the time of loan maturity should be 65 years.
  • The borrower's minimum turnover should be Rs. 10,00,000 in the last 12 months.
  • ITR of more than 2.5 lakhs in the past year.
  • The individual should be running the business for 3 years and have at least 5 years of business experience.

Small Business Loan Procedure

The procedure for applying for a small business loan is quite simple. You can apply online for a small business loan in 3 simple steps:

1. Check The Criteria

The first step before applying online for a small business loan is to check if your application matches the criteria as mentioned above. This will ensure that your loan does not get rejected later in the process.

2. Submit Application And Documents

Submit the business loan application form available online and submit it along with all the required documents.

3.Wait For Small Business Loan Approval

After you are done with all the formalities, all you need to do is wait until your loan gets approved. The loan amount will be released directly to your account.

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