Capital Resource is one of the most important requirements of any business, new or thriving. Many business owners, SME’s, MSME’s, and startups often turn to banks, NBFCs, and financial institutions to help grow their businesses in the form of a business loan. At LoanSumo, we help companies access Business Loans in India. Our loans are enabled by our large network of lenders across banks, NBFC’s, and private finance lenders.
LoanSumo works with lenders like banks, NBFC’s, and private finance to offer business loans. Our online business loans come with an easy application process and quick loan disbursals. Our loans can be availed by many types of business including new businesses, startups, small businesses, SME’s, and MSME’s. Some of the banks and NBFC’s offering business loans including SBI, HDFC, Tata, LendingKart, ICICI, etc.
Here are some aspects to be known by businesses that are interested in businesses loans from LoanSumo:
- Loan Amount Sanctioned: Up to 1 Crore INR
- Loan Tenure: Up to 60 Months
- Interest Rate Range: 15% – 25%
The exact terms of the business loan and the decision of approval and disbursement will be made the bank or NBFC. LoanSumo assesses the customer need and appropriately matches them with the right lender. Thereafter, the lender works directly with the borrower to finalize terms and conditions.
Unsecured Small Business Loans
There are two types of business loans: Unsecured Business Loans and Secured Business Loans.
Secured Business Loan:
Secured Business Loans are Loans for Businesses that are given out with an underlying security protecting the bank’s asset. Examples of Secured Business Loans include Invoice Financing and Loans against Property. Since these loans have a guaranteed security tied to the loan, banks are able to recoup the asset in case of losses.
Unsecured Business Loan:
Unsecured Business Loans are Loans given out to businesses without security or collateral. These loans are usually given after judging the business’s success through their IT Return Documents. The banks’ checks for unsecured business loans are usually more stringent.
SME, MSME & Small Business Loans
SME Loans are loans targeting small businesses and Small and Medium Enterprises. Many SME’s have different requirements in India, and Small Business Loans are created to meet these specific needs in assisting with their cash flow or capital inputs. Most banks and NBFC’s including SBI and HDFC have their own unique requirements for small business loans. We work with multiple lenders to ensure customers’ needs are met. LoanSumo also helps online businesses and sellers get access to SME Business Loans.
Business Loans from Government
The Government of India supports many different small business loan schemes to promote entrepreneurship and SME’s/MSME’s in India. Some of the popular government loan schemes include the Mudra Loan Scheme and Stand up India Scheme.
Business Loans – Interest Rates
|BANK||LOAN AMOUNT||INTEREST RATES||PROCESSING FEE|
|HDFC BANK||Up to INR 50 Lakh||15.5% – 18.3%||Up to 2.50%|
|ICICI BANK||Up to INR 1 Crore||13% – 16.5%||Up to 2%|
|KOTAK MAHINDRA BANK||Up to INR 75 Lakh||16% – 19%||Up to 2%|
|STANDARD CHARTERED BANK||Up to INR 75 Lakh||13.5% – 20%||Up to 2%|
|BAJAJ FINSERV||Up to INR 30 Lakh||16% – 21%||Up to 2%|
|CAPITAL FIRST||Up to INR 75 Lakh||13% – 20%||Up to 2%|
LoanSumo operates across all the major metros in India including Delhi, Mumbai, Hyderabad, Chennai, Bangalore, Kolkata, and Pune
Unsecured Business Loan – Eligibility & Requirements
To be eligible for an SME Loan, or SME Loan, here are some of the basic requirements:
- Age of Owner of Business to be between 21 years and 65 years
- Age of Business for which loan is taken should be greater than 3 years
- Minimum Annual Revenue of the Business should be 50 Lakhs INR per annum
What kind of companies are eligible for Unsecured Loans and Funding?
- New Businesses and Startups
- Small Businesses
- SME’s & MSME’s
- Women-owned Small Enterprises
- Commercial Establishments
- E-Commerce Sellers & Online Businesses
Some of the documentation requirements of the loan include:
- IT Returns of the company for the last 3 years
- IT Returns of all business owners for the last 3 years
Based on the requirements of the business loan and the eligibility of the business owner and the company, we will rightly match the company with an appropriate lender.