" You execute business we execute loans"

What is business loan?

Business loans are unsecured financial assistance provided by banks and NBFCs in India. The primary aim of these is to support the urgent needs of your growing business. Most financial institutions offer term loans and flexi loans to cater to the business needs of a company. Business loans are also called commercial loans. All types of businesses such as a sole proprietorship, privately held company, partnership firms, self-employed individuals and retailers can avail these loans.

Benefits of Business Loan

As per convenience promoters offers different repayment options. They may work out a repayment plan as per the business cash flows to avoid facing financial difficulties while servicing the loan.

Monthly installment can be lower or increased by owners as per the profitability or choose bullet payments to periodically repay the amount.

  • Flexibility
    • According to the requirement of the fund different types, the owner avails the loan.
    • Many companies can choose term loans to meet the fund requirements in the short to long-term.
    • They may choose for working capital loans to meet the operational expenses of the business.
    • An overdraft facility whereby promoters may overdraw the current accounts as per the agreed terms and conditions.
    • The flexibility makes it easier for promoters to avail a loan for the business facility.
  • No Collateral Required
    • No income or collateral documents need to submit to avail the loan.
    • A property or land must be owned by the borrower for a 100% loan disbursement.
    • For a small business start-up, these loans help to meet their business requirements and sustain the progress.
  • Short-term Option
    • Businesses which look for their fund requirements can opt short-term loan.
    • This meets their requirements to fill a short-term financial gap.
    • In addition, there are flexible loan options depending on the size of the business like
    • 100% disbursement,
    • 70% pay-out (if shown company tax return) etc.
    • This makes easier for businessmen to expand their business and to sustain the cash flow.
  • Competitive Interest Rates
    • Not only banks and certain NBFCs but also other lending companies can also offer business loans. However, at competitive interest rates.
    • Capital Float provides a business loan to start-ups, small and medium businesses in India at very competitive interest rates, nominal processing fees, with absolutely no hidden charges.
    • These features make financial institution some of the most preferred lenders in the present small business loan market.
    • Anyone in business can reap the rewards from financial education and professional advice.
    • Grow your business with a smarter business loan.
  • Property as a Loan for Business
    • There has been a substantial growth in e-commerce since 2014. It has grown multifield within very less time.
    • The growth has been off the charts for a while. The number of e-commerce firms has also risen with many start-ups coming into play.
    • This implies enough options to confuse a buyer and enough competition for a seller.
    • The connection between buyers and sellers has become a competition in itself.
    • The sellers also have to compete within. The internet has revolutionized the way the FMCG market works.
    • However, it has changed the way how companies conduct their businesses and how the buyers buy goods.
    • They can easily compare the goods and their prices and buy from the best options. To lure the customers, they also use different incentives.
    • This makes customers come back to them. Consumers can purchase goods at their convenience at any place and any time.
    • The sellers also get benefits by reducing the overhead cost thus increasing cost efficiency and ultimately increasing profitability.
    • If any person runs an online business, he will be familiar with unique funding challenges they face. It uses a lot of your management skills and time.
    • You need to keep a check on your stock, working capital etc.
    • Financing your e-commerce business is an essential process, for finance is a vital component of the business.
    • However, it can lead to unimaginable harm to a business and reduce the growth prospects of a company
    • E-commerce loans help the companies make the road easier. They don’t have to fight out for the resources.
    • The loans help them get resources easily which they could not be able to arrange easily.
    • However, there are various factors affecting business loan approval.

Benefits of e-commerce Loans in Business

  • Website Development
    • An effective website is the most important thing for an e-commerce business.
    • It automatically increases the number of customers that visit your website.
    • It should be updated regularly as well. This requires professionals and thus more money.
  • Expanding your Produce Range
    • You must try to keep growing. To grow, you need to expand your range of product that the business sells.
    • Thus, you may need the funds for manufacturing costs and stock purchase.
  • Create the Infrastructure

Companies need to provide an efficient infrastructure to offer seamless services to its customers, it includes:

    • Delivery channels
    • Payment gateways
    • Storage facilities
    • Manufacturers etc. Also, you need to provide an efficient and secure system to prevent leakage of sensitive user information. This can be solved via business loans facts.
  • Stock or Working Capital
    • Sometimes, it takes a major portion of your cash to cover stock and working capital.
    • A loan can easily help you cover those costs and use cash to grow the companies.
  • Financing Restructuring
    • A business loan can consolidate your existing loans.
    • This helps you save time and effort. You need not keep a track of too many debts.
  • Hire Competent Personal
    • After getting a loan, you can have enough money to hire a competent and professional staff.
    • However, this can help you grow sales and turnover to grow your company.
  • Promote their Ventures
    • The company has to promote their ventures to be visible on the internet. Having more money means more promotions.
    • This will help in maximizing their online presence, and provide benefit to the company

Eligibility for a Business Loan

  • Business loans can be availed by the following entities, such as MSMEs, SMEs, entrepreneurs, small business owners, artisans, traders, retailers, manufacturers, private limited and public limited companies, sole proprietorship, partnership firms, limited liability partnerships, etc.
  • Age Criteria: Minimum age 18 years at time of loan application and maximum 65 years at time of loan maturity
  • Loan Amount: Minimum 10,000 and maximum  50 lakhs, can exceed up to 10 crore and more, depending up on business requirements and applicant’s profile
  • Repayment Tenure: From 12 months to 60 months
  • CIBIL/Credit Score: 650 or above
  • Applicant should be Indian national with no past criminal records
  • Business existence: minimum 2 years form the date of incorporation
  • Business experience: Minimum 1 year in the same line of occupation
  • Company’s Turnover: To be decided by the lender or financial institution


Documents Required for Business Loan

  • ID Proof: Papers as proof of identity like Passport, Pan card, Voters ID Card and Driving License.
  • Address Proof
  • Proof of Continuity of Business
  • Bank Statement 6 Months
  • Board Resolution (If pvt ltd co. is co-borrower/Partnership Authorization Letter {if partnership firm is co-borrower}
  • ITR & Statement of Computation of Income – for last 2 Years
  • CA Certified or Audited P/L Account Statement and for >40 Lacs cases Audit report along with schedules of P&L and Balance Sheet – for last 2 years
  • Latest ITR of Co-Applicants – For last 2 Years
  • Ownership Proof of Residence or Office Bottom of Form


Self Employed (Private Ltd. Co. and Partnership Firms) include Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services.

  • Eligibility Criteria:
    • Minimum Turnover of 40 Lakhs.
    • Years in business: Minimum of 3 years in current business and 5 years total business experience
    • Business must be profit making for the last 2 years
    • Minimum Annual Income (ITR): 1.5 Lakhs p.a.
    • Documents required:
    • PAN Card
    • Address Proof (Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/Trade license /Sales Tax certificate)
    • Bank Statement (latest 6 months bank)
    • Last 2 Years ITRs (computation of income) Balance Sheet and Profit & Loss a/c. Audited or Certified by a CA
    • Proof of continuation (ITR/ Trade license /Establishment /Sales Tax certificate)
    • Sole Proprietor Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association & Board resolution (Original)


Self Employed (Individuals). include – Sole proprietors, Partners & Directors

  • Eligibility Criteria
    • Minimum age of Applicant: 21 years
    • Maximum age of Applicant at loan maturity: 65 years
    • Years in business: Minimum of 3 years in current business and 5 years total business experience
    • Minimum Annual Income (ITR): 1.5 Lakhs p.a.
  • Documents required:
    • Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)
    • Address Proof (Ration card Tel/elect. Bill/ Lease agreement/ Passport/ Trade license /Sales Tax certificate)
    • Bank Statement (latest 6 months)
    • Latest ITR along with computation of income, Balance Sheet & Profit & Loss a/c for the last 2 yrs. Audited or Certified by a CA
    • Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
    • Other Mandatory Documents (Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)