Business loan
Business loans for MSMEs, traders and shop owners
A business loan funds the gap between what your business earns and what it needs to grow — stock ahead of a season, a new machine, a second outlet, or simply working capital while receivables clear. Most offers here are unsecured, so they rest on your business vintage, turnover and banking record rather than on property. Compare them on total cost and on how quickly funds actually land.
Why borrowers pick it
What a business loan gives you
Collateral-free options
Many partners lend against turnover and banking history alone, so you keep your assets unencumbered.
Priced on cash flow
Lenders read your GST filings and bank statements, which often works in favour of a business with steady inflows.
Flexible tenures
Short tenures for a stock cycle, longer ones for equipment — choose the term that matches what the money is for.
Built for MSMEs
Traders, manufacturers, professionals and service businesses are all covered by at least one partner on the panel.
Eligibility
Who qualifies for a business loan
Criteria differ by lender. These are the ranges our partners commonly apply — the exact rule is shown on each offer.
The business
- An established business with a track record the lender accepts
- Turnover that meets the lender's minimum
- GST registration where it applies to your trade
- Registered as a proprietorship, partnership, LLP or private limited company
The applicant
- Within the lender's age limits at loan maturity
- A good credit record for both the business and the promoter
- No active default with any lender
- Indian resident with a registered business address
Paperwork
Documents you will need
Keep soft copies ready before you apply — most partners complete verification digitally.
Identity and business proof
- PAN of the business and of the proprietor or partners
- Aadhaar of the applicant
- GST registration certificate or Udyam registration
- Partnership deed, MOA and AOA, or the shop and establishment licence
Financials
- Recent current account statements
- Recent income tax returns
- Audited balance sheet and profit and loss account where required
- Recent GST returns
Costs
Interest, fees and charges
The rate is only part of the cost. Read this table alongside the total payable shown on each offer.
| Charge | What lenders typically apply |
|---|---|
| Processing fee | A percentage of the sanctioned amount + GST, set by the lender |
| Interest rate | Set by the lender based on your business profile |
| Prepayment / foreclosure | As per the lender's terms, after a minimum number of EMIs |
| Late payment charge | As per the lender's terms |
| Renewal fee (for credit lines) | As per the lender's terms |
Figures in brackets are placeholders. Final rates and fees are set by the lending partner and are disclosed in the sanction letter before you accept an offer.
FAQs
Business loan questions, answered
Do I need collateral for a business loan?
Not for the unsecured offers on this page — those are assessed on turnover, banking record and credit history. If you can pledge property, a loan against property usually carries a lower rate and a longer tenure.
How much can my business borrow?
Lenders typically size the loan against monthly turnover and existing obligations. Filing GST returns on time and keeping business inflows in one account both tend to raise the sanctioned amount.
Is a new business eligible?
Most partners ask for a minimum business vintage. Newer businesses may still qualify with a co-applicant, collateral, or under a government-backed scheme your lender participates in.
Can I use a business loan for personal expenses?
No. Business loans are sanctioned for business use, and lenders may ask for end-use evidence. For personal needs, compare personal loan offers instead.
Compare business loan offers side by side
Checking offers is a soft enquiry, so your credit score is not affected.