LendingKart Business Loan

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Business Loan

Get Lendingkart business loans up to Rs. 35 Lakhs to fund all financial needs of business owners. The loan can be repaid easily in a maximum tenure of up to 36 months through EMIs. You can easily apply for the loan online and get an affordable interest rate starting from just 18% p.a.

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On LendingKart bank official website

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Updated: 20-05-2024 03:39:12 PM

LendingKart Business Loan Details

Following are the key highlights of Lendingkart loan for business

Rate of interest 18%
Minimum loan amount Rs. 50,000
Maximum loan amount Rs. 35 Lakhs
Repayment tenure 1 to 36 months
Documentation charges As applicable
Processing fee 3%
Foreclosure charges  Nil
Minimum turnover Rs. 90,000 in the last 3 months
Average loan ticket size Rs. 6 Lakhs
Insurance premium Premium percentage depends

Types of LendingKart Business Loans

The following are the different types of LendingKart business loans:

1. Working Capital Loan

Lendingkart offers a customized working capital loan for small and medium enterprises (SMEs) and startups to meet their working capital needs. A working capital loan helps them in running everyday operations. These loans usually cover recurring expenses of a business such as accounts payable, wages, etc. Lendingkart working capital loans help offset your working expenses during a low sales/ revenue period.
Following are the 6 most common working capital loan types for SMEs:

  • Bank Overdraft/ Credit Line: Under this, banks or other financial institutions provide a pre-approved withdrawal limit on your current account. Interest is charged only on the amount utilised, even if a higher limit was sanctioned to you.
  • Equity Funding: Business owners can acquire this funding through personal resources/ investors, such as investment through friends or family. These loans are mostly availed by start-ups and businesses having a less-than-ideal credit score.
  • Short-term Loans: These are just normal secured working capital loans, sanctioned at a fixed rate of interest with short repayment tenure of up to 1 year.
  • Loan on Accounts Receivables: These loans are sanctioned against the confirmed value of the sales order. If you have a reliable customer base, this kind of loan is ideal for your business.
  • Factoring/ Advances: Similar to the accounts receivable loan, this loan variant is offered against your future credit card receipts and not on confirmed sales. However, it is only suitable for a business which accepts credit card payments.
  • Trade Creditor: This loan facility is offered by a current or new supplier on placing bulk orders. Trade creditors usually have strict policy parameters that are to be followed by the borrower.

2. Unsecured Business Loan

Lendingkart offers customised collateral-free business loans to SMEs in India in just 5 minutes for critical business operations. These loans are free from any bureaucratic red tape and have a straightforward application, approval, and disbursal process. These business loans help your small business grow, allowing you to invest in infrastructure, operations, and plant & machinery. They can also be a veritable medium of maintaining business for critical business operations. You can avail of unsecured business loans under Bank Overdraft/ Credit Line, Equity Funding, Short-term Loans, Loan on Accounts Receivables, Factoring/ Advances, or Trade Creditor categories.

3. MSME/ SME Loan

Micro, small and medium enterprises (MSME) and small and medium enterprises (SME) loans are the same. These are offered to businesses falling under MSME or SME categories. Lendingkart offers special unsecured SME and MSME Loans online to businesses which are in need of quick finance in India.

Following are 5 most common ways to utilise these loans:

  • Inventory Management:  It is a critical part of all small businesses as their profit depends on the sale volumes. You can use the MSME Loan to secure the inventory supply chain, replenish existing stock, manage seasonal dips, or buy new product samples for sale.
  • Purchasing Plant and Machinery: You can use these loans to purchase new equipment. Investment in purchasing plant and machinery needs heavy funding.
  • Working Capital Management: These loans can be used to cover your everyday business operations and recurring expenses such as accounts payable, wages, etc.
  • Consolidate Your Business Debt:: MSME Loans allow you to consolidate your smaller debts under a single EMI, reducing the strain on your monthly budget. It also helps in aligning debt repayment with invoicing schedule..
  • Invest in Marketing: Marketing helps in the growth of your business by increasing its outreach. However, marketing is an expensive affair and requires investment. With MSME/ SME Loans you can successfully run such a campaign.

4. Business Loan for Women

There is phenomenal growth in India’s MSME sector. It contributes above 45% of our industrial output and a part of this success story is contributed by women entrepreneurs of the country. Lendingkart is a great platform for women entrepreneurs who are looking for a business loan as the whole process is quick, reliable, and allows personalised loan terms for every business.

Features of LendingKart Business Loan

The key features of the Lendingkart business loan are as mentioned below:

Purpose of the loan: Working capital finance for day-to-day operations of the business and term loans to build infrastructure for the business and for expansion of the business.
Quantum: The minimum quantum of the loan is Rs. 50,000 and the maximum quantum of the loan is Rs. 35 Lakhs, depending on the customer risk and profile.
Interest rate: Lendingkart interest rate for business loan are customised and range from 18% to 40% per annum, based on the annual turnover, cash flow and the health of the business.
Repayment: The loan amount along with interest has to be repaid within a maximum tenure of 36 months. Instalments can be paid either monthly or bi-weekly.
Security: No collateral security is required.
Processing charges: One-time processing fee of 3% of the loan amount will be charged.
Pre-closure charges: Nil. Pre-closure is allowed only after full payment of the first EMI.

Why Choose LendingKart Business Loan?

  • Quick processing: The application process is 100% online, which makes the processing faster and enables approval of the loans on the same day of receiving the online application.
  • No collateral required: LendingKart does not insist on collateral security for providing a loan. So, you need not mortgage your valuable assets and worry about losing their ownership in case of eventualities in the business.
  • Enables streamlining of business cash flow: It provides funding at the right time which can be paid in easy instalments, enabling balancing the business fund and company capital fund.
  • Helps to improve the credit score: If the credit score of your business has declined due to unpredictable market conditions, then a business loan from LendingKart is the right option to improve your credit score.
  •  Flexible repayment: The loan tenure can be chosen as per your business behaviour. If the going is good then you can repay your loan earlier with their fortnightly EMI option. Otherwise, you can choose longer loan tenure to arrive at the EMI as per your affordability.
  • Interest rates: The interest rate is fixed on case to case basis. The rate depends on the annual turnover, cash flow and the health of your business which makes it the best rate available in the market.
  • No hidden costs: LendingKart charges only a one-time processing fee. There are no other hidden costs other than this. The cost of the loan is maintained at a low level on account of this.

LendingKart Business Loan EMI Calculation

Equated Monthly Instalment (EMI) consists of both principal and interest components. Business loans that can be paid off in EMIs are most convenient for business owners. They can plan their commitments if the loan has to be repaid in EMI as it will be a constant amount month after month.  To calculate your business loan EMI, you can use our Business Loan EMI Calculator available on our website. Just enter the loan amount, interest rate and tenure to get the calculation instantly.

Here is an example:

  • Loan amount to be availed: Rs. 50 Lakhs
  • Applicable interest rate: 15% p.a.
  • Repayment tenure opted for: 3 years
  • Here’s the calculation result by our EMI Calculator:
  • EMI to be paid each month: Rs. 1,73,327
  • Total interest amount to be paid: Rs. 12,39,759
  • Total amount to be paid by the borrower: Rs. 62,39,759

In addition to the above information, the EMI Calculator will also provide you the complete amortization schedule of your business loan payment.

The complete amortization schedule for the above example is:

Year Opening Balance Amount Paid by customer(EMI*12) Interest paid during the year Principal paid during the year Closing Balance
1 ₹ 50,00,000 ₹ 20,79,920 ₹ 6,54,649 ₹ 14,25,271 ₹ 35,74,729
2 ₹ 35,74,729 ₹ 20,79,920 ₹ 4,25,530 ₹ 16,54,389 ₹ 19,20,340
3 ₹ 19,20,340 ₹ 20,79,920 ₹ 1,59,580 ₹ 19,20,340 ₹ 0

After calculating the EMI and before applying for the loan you have to consider the following:

  • Asses various finance options other than the loan before availing a business loan. A business loan may not be the only option to source your fund requirement to run the business. You can exercise various options like improving sales, cutting on operation costs and using the funds lying in the contingency funds.
  • Have a business plan ready before you go for a Business Loan. The business plan should have the areas for which the funds from the business loan will be utilised. By doing so you will be clear about critical areas where the loan has to be channelised to take the business to another level. Building a good relationship with LendingKart will enable you to get funding for the next project immediately on clearing the loan availed for the present project.
  • Plan a strategy for the business growth by involving operational heads, business advisors and financial planners of the Company before going in for a Business Loan. If the loan is availed and it is not utilised in the direction which would yield a business growth then it is not worth it.

LendingKart Business Loan Documents Required

The following list of documents is required for LendingKart Business Loan:

  • Bank statements for the last 12 months: To be submitted by Proprietorship, Partnership, Private Limited, LLC, and One Person Company.
  • Business Registration proof like GST Filing/ Trade License/ Drug License/ TIN/ VAT Registration/ Gumastadara/ Business Registration Certificate: To be submitted by Proprietorship, Partnership, Private Limited, LLC, and One Person Company.
  • Copy of Company’s PAN Card: To be submitted by Private Limited, LLC, and One Person Company.
  • Copy of Proprietor’s PAN Card: To be submitted by Proprietorship, Partnership, Private Limited, LLC, and One Person Company.
  • Copy of Partnership Deed: To be provided by the Partnership firm
  • Copy of Proprietor’s Aadhaar Card: To be submitted by Proprietorship, Partnership, Private Limited, LLC, and One Person Company.

LendingKart Business Loan Eligibility

The following are the eligibility criteria for LendingKart Business Loan:

  • The business has to be in existence for the last 6 months (3 months for Working Capital Loan) and should be well established.
  • The business should have a minimum turnover of Rs. 90,000 in the last 3 months prior to the date of the loan application.
  • The business should not be a part of the blacklisted/excluded list for SBA Finance.
  •  NGOs, Trusts, and charitable institutions are not eligible for the Small Business Loan or Small Business Working Capital Loan.
  • The location of the business should not be in the negative location list.

LendingKart Business Loan Charges

LendingKart business loans involve the following charges:

  • Interest rate of 15% to 27% p.a.
  • One-time processing fee of 2% to 3% of the loan amount sanctioned.
  • Rs. 10 as signature verification charges will be collected which has to be directly deposited to the specified LendingKart Finance Limited Account.
  • No pre-closure charges will be collected. Only the interest of the current month in which the loan is foreclosed, will be charged. Pre-closure allowed on full payment of the first EMI.

How to Apply for LendingKart Business Loan?

To apply for LendingKart Business Loan, follow the steps mentioned below:

  • Check Eligibility: Firstly, check your eligibility for LendingKart Business Loan
  • Submit Application: Complete the application form, which 100% online. Enter your personal, business, and financial details to receive an MSME/ SME Loan offer.
  • Upload Documents: Next, upload digital copies of the required documents for verification in a single-step process.
  • Get Sanctioned: You will receive approval and disbursal of your MSME/ SME Loan within 3 working days. The application will then be evaluated to propose a fair sanction.
  • Receive Funds: After approval, you will receive your loan within 3 days. Use it to grow your business.

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LendingKart Business Loan FAQs

No, there are no special offers for Women Entrepreneurs at LendingKart.

As it is the loan processing time is very minimal at LendingKart. To hasten it further you will have to download the correct documents and give accurate information that is called for.

Bi-weekly EMI will enable you to pay the loan faster. A loan availed for a working capital requirement can be replenished faster so that funds are available for further use.

The loan will be provided even when the credit score is low but the interest rate will be high. This will increase the cost of the loan which is not good for the business. So, it is better to aim at keeping the credit score high.

Yes, minimum turnover of over Rs. 90,000 three months prior to the date of loan application is required to be eligible for a Business Loan at LendingKart.

At LendingKart, they have devised a technical tool to assess the creditworthiness of the borrower which eradicates manual intervention to a large extent. So, the evaluation will be done as quickly as 3 days.

Payment can be done through NACH or by any other stipulated modes wherein the bank account will be debited automatically on the due dates.

Sales and revenue are the determinants for the sanctioned limit. With an increase in sales/revenue, the limit also can be enhanced.

LendingKart is the best choice because the loan evaluation is done quickly and there is no elaborate paperwork involved.

There are no charges for renewal. Only one-time processing charges will be collected at the time of availing the loan.

Lendingkart business loans do not put your valuable assets on risk. These are unsecured business loans that do not require any collateral or security.

LendingKart Finance Limited is an RBI-registered, non-deposit-taking NBFC that provides loans to MSME businesses in India.

You can get a maximum of Rs. 35 Lakhs with a Lendingkart business loan?

Yes, you can easily apply for  Lendingkart business loan online through its mobile app or official website.