Business Loan

A business loan is a financial product specifically designed to provide funding to entrepreneurs, startups, small and medium enterprises (SMEs), or large corporations. It helps businesses manage their cash flow, invest in infrastructure, purchase inventory or machinery, hire staff, or expand operations.

There are various types of business loans available, including:

• Term Loans (short-term or long-term)

• Working Capital Loans

• Equipment Financing

• Line of Credit

• Invoice Financing

• Startup Loans

Business loans can be either secured (requiring collateral) or unsecured (no collateral needed), and repayment terms vary based on the loan type and lender policy.

Lenders typically assess eligibility based on:

• Business age and turnover

• Credit score (CIBIL)

• Financial statements

• Business plan and projections

Interest rates and processing fees differ by lender and loan type. Many banks, NBFCs, and online lenders offer quick business loan approvals with minimal documentation today.