Business Loan for New Business: A Comprehensive Guide

Although starting a new business is an exciting endeavor, it often necessitates a significant amount of funding. Many entrepreneurs take out business loans to fund their ventures. If you’re thinking about getting a loan to start your new business, you should understand the basics. This guide will teach you everything you need to know about Business Loan for New Business.

Business Loan for New Business Applicable Fees

Type of feeApplicable charges
Rate of interest9.75% to 30% per annum
Processing feesUp to 3.54% of the loan amount (inclusive of applicable taxes)
Bounce chargesIn case of default of the repayment instrument, Rs. 1,500 per bounce will be levied.
Document processing chargesRs. 2,360 (inclusive of applicable taxes)

Features of Business Loan

  • Few documents are needed for a startup loan.
  • The majority of financial institutions provide this loan directly through their branches, online, or through a one-minute application process. Even the convenience of doorstep service is provided by some lenders.
  • Potential business owners must provide documentation of their credit history.
  • When granting business startup loans, financial institutions typically don’t require any kind of security or collateral.
  • competitive interest rates, but the only factor affecting it is the credit history of the individual
  • Repayment simplicity and adjustable term

Eligibility Requirements for Business Loan

  • The candidate must be between the ages of 21 and 65. evidence of identity, such as an Aadhar or PAN card
  • Identification proof such as a driver’s license or Aadhar card
  • Business or firm PAN card
  • bank statement for the previous six months
  • authenticated copies of The association’s articles and memorandum

Business Loan for New Business Pros

  • The financial institution is not entitled to the business’s profits.
  • The loan approval procedure moves quickly. As a result, the money is available right now.
  • Tax benefits are available to borrowers for interest paid on their loans.
  • It contributes to raising the company’s credit rating.
  • Financial institutions examine every detail of the business plan, but they have no control over how the business is run or how the borrowers use the money.

How to get a Business Loan for New Business?

  • Select the “APPLY” option located on this page.
  • Enter the OTP and your 10-digit mobile number.
  • Provide your basic information on the application form, including your date of birth, PAN, full name, and PIN.
  • To access the loan selection page, please click “PROCEED” after entering all of your information.
  • Enter the required loan amount.
  • Select between our three business loan options: Flexi Hybrid, Flexi Term, and Term.
  • Click “PROCEED” after selecting the repayment tenure, which ranges from 12 to 96 months.
  • Finish your KYC and send in your application for a business loan.


It is necessary to comprehend important elements like applicable fees, eligibility requirements, and the application process to obtain a business loan for a new venture. It provides easy access to large amounts of money with low documentation requirements and competitive interest rates. But to be approved, you must continue to meet eligibility requirements and have a good credit score.


Q1. How much can be borrowed, and what is a business loan?

A. A business loan is one type of financial product that can help you cover both expected and unexpected business expenses. You can apply for this type of unsecured financing without providing any form of security. If you meet the simple qualifying requirements, the Bank can provide you with a business loan of up to Rs. 80 lakh. The loan amount will be transferred to your bank account within 48 hours of accepting your application.

Q2. What is the lowest CIBIL score needed to be eligible for a business loan?

A. A CIBIL score of 685 or higher is regarded as a good credit score. Having all of your paperwork in order and having a high business turnover also enhances your profile.

Q3. Who may submit a business loan application?

A. A Business Loan can be applied for by business entities such as proprietary concerns, partnership firms, private limited companies, self-employed professionals, and self-employed non-professionals. All applicants must meet the eligibility requirements and provide the necessary documentation.

Q4. How much revenue must a business have to be eligible for a business loan?

A. You must be the owner of a company that has been in operation for at least three years to qualify for a business loan. Additionally, you must have filed income tax returns for a minimum of one year.

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