Startup Business Loan

Following are the key features and benefits of startup business loans:

• You don’t need any collateral or security to avail of a startup business loan.
• Startup business loans have flexible repayment tenure.
• The documentation requirement for business loans for startups is minimal.
• The funds are instantly disbursed to the bank account of the applicant.
• The applicable business loan interest rate depends on the applicant’s credit history.

The start up loan eligibility criteria differs from one lender to another. Following are some generic startup business loan eligibility criteria:

• The applicant should not be aged below 21 years when applying for the new business start up loan the maximum age should not be above 65 years when the loan matures.
• The applicant should be an Indian citizen.
• The applicant must have a well-drafted business plan.
• The concerned startup must be a sole proprietorship, partnership firm, private/public limited company or a limited liability partnership.
• The applicant should have a credit score of 750 or above.
• The applicant should not have any previous loan defaults with any lender.
• The total turnover of the business should not be more than Rs. 25 Crores.

You will need the following documents to apply for a small business loans startup:

• Duly filled application startup loan application form.
• Recent passport-sized photographs.
• KYC documents of the applicant as well as co-applicants including Passport, Aadhaar Card, Voter ID Card, PAN Card, Driving License, and Utility Bills.
• Self-drafted Business Plan.
• Bank statement of the last 12 months.
• Last 1 year’s Income Tax Return.
• Business address proof as well as PAN Card.
• Business Incorporation Certificate.
• Any other document as required by the lender.

Following are some of the best banks that offer instant business loan for startup:

HDFC Bank’s Key Features

• Loan amount available of up to Rs. 40 Lakhs (Rs. 50 Lakhs in select location).
• Rate of interest starting from 15.75% p.a.
• A processing fee of 0.99% of the sanctioned loan amount will be levied by the bank.
• Repayment tenure of 1 to 4 years.

TATA Capital Key Features

• Loans amount available between Rs. 5 Lakhs to Rs. 75 Lakhs.
• Rate of interest for this start up financing starts from 19% p.a.
• A processing fee of up to 2.50% of the sanctioned loan amount plus GST will be levied by the bank.
• Repayment tenure of 1 to 3 years.

Kotak Mahindra Key Features

• Rs. 3 Lakhs to Rs. 75 Lakhs startup business loan without collateral available.
• Fund against credit card receivables (FCCR) also available up to Rs. 3 Crores.
• Processing fee up to 2% of the loan amount plus applicable taxeswill be charged.
• Repayment tenures of up to 4 years available.

Fullerton India Key Features

• Unsecured business loan for startup up to Rs. 50 Lakhs can be availed.
• Repayment tenure of up to 5 years is available.
• The processing fee is up to 6.5% of the loan amount plus applicable GST.