What is business loan?
The terms and conditions of a business loan are typically customized by the lender based on the specific requirements and financial health of the firm. Key factors considered include the business’s creditworthiness, financial statements, and the intended purpose of the loan, ensuring you receive a tailored financial solution.
Types of Business Loans Tailored for Growth?
YesLoans helps you explore various types of business loans to match your strategic objectives:
Get In Touch With Us
We do not charge any upfront fees.
Find out the best deal we can offer without it affecting your credit score.
EMI Calculator
EMI
₹ 0Interest
₹ 0Total
₹ 0Eligibility Criteria & Documentation: Simplified for Your Business
- Business Vintage: Minimum of 1 to 3 years in operation (varies by lender and loan type).
- Annual Turnover: Varies significantly based on the loan amount and lender.
- Profitability: Consistent profitability is often a key factor.
- Credit Score: A healthy credit score for the business and/or promoters is essential.
- Business Registration: Valid business registration and necessary licenses.
- Business KYC Documents: PAN Card of the business, Certificate of Incorporation/Registration.
- Promoter/Director KYC: PAN Card, Aadhar Card, and proof of address for all key individuals.
- Business Bank Statements: Last 6 to 12 months' bank statements.
- Financial Statements: Audited financials for the last 1-3 years (Profit & Loss, Balance Sheet), Provisional Financials if the latest audit is pending.
- GST Returns: Latest GST returns (e.g., GSTR-3B).
- Business Proof: Shop & Establishment Certificate, Udyog Aadhar, Partnership Deed, Memorandum of Association (MoA) & Articles of Association (AoA), etc.
- Income Tax Returns (ITR): Business ITRs for the past 1-3 years.
- Loan Sanction Letters: If any existing loans.
- Business Vintage: Minimum of 1 to 3 years in operation (varies by lender and loan type).
- Annual Turnover: Varies significantly based on the loan amount and lender.
- Profitability: Consistent profitability is often a key factor.
- Credit Score: A healthy credit score for the business and/or promoters is essential.
- Business Registration: Valid business registration and necessary licenses.
- Business KYC Documents: PAN Card of the business, Certificate of Incorporation/Registration.
- Promoter/Director KYC: PAN Card, Aadhar Card, and proof of address for all key individuals.
- Business Bank Statements: Last 6 to 12 months’ bank statements.
- Financial Statements: Audited financials for the last 1-3 years (Profit & Loss, Balance Sheet), Provisional Financials if the latest audit is pending.
- GST Returns: Latest GST returns (e.g., GSTR-3B).
- Business Proof: Shop & Establishment Certificate, Udyog Aadhar, Partnership Deed, Memorandum of Association (MoA) & Articles of Association (AoA), etc.
- Income Tax Returns (ITR): Business ITRs for the past 1-3 years.
- Loan Sanction Letters: If any existing loans.
Your 5-Step Path to Business Loan Approval
Experience a quick and transparent application process with YesLoans
Submit Your Requirements:
Tell us your business needs and
desired loan amount.
Explore Personalized Offers:
Review and select from the best business loan offers from our extensive network of lenders.
Easy Document Upload:
Securely upload your necessary business and financial documents online.
Dedicated Support:
Our Relationship Manager will guide you through the process, assisting with any queries.
Rapid Sanction & Disbursal:
Receive quick approval and swift transfer of funds to your business account.
Why Businesses Choose YesLoans?
- Access Best Deals: Get the lowest interest rates and most favorable terms tailored for your business.
- Free Credit Report: Access your business credit report to understand your financial standing.
- Live Rate Comparison: Transparently compare loan options from multiple lenders in real-time.
- Strong Lender Partnerships: Benefit from our tie-ups with 100+ reputable Banks & NBFCs.
- Quick & Seamless Process: Our digital platform ensures fast processing and quick disbursal across India.
- Expert Guidance: Our dedicated team is here to provide professional advisory services.
FAQ
A business loan can provide the necessary funds to finance growth initiatives thus leading to business expansion. It also helps to maintain working capital to cover day-to-day operational expenses, such as purchasing inventory, paying salaries, managing cash flow, and meeting short-term obligations. It enables to bridge the temporary gaps in cashflow.
Here are some tips that can help:
- Prepare necessary documents in advance and gather all the required documents for the loan application, such as business financial statements, bank statements, income tax returns, identity proof, address proof, and any other documents requested by the lender.
- Maintain a good credit by paying bills and existing loans on time, keeping credit card utilization low, and minimizing credit inquiries
- Have a well-documented business plan which should outline your business goals, financial projections, repayment strategy, and how the loan funds will be utilized. It enhances your credibility as a borrower.
- Improve your debt-to-income ratio: the ratio of your monthly debt obligations to your monthly income. A lower DTI ratio indicates better financial stability.
- Consider collateral option helps to increase the chances of approval and expedite the process since secured loans have a lower risk for lenders.
There are several benefits of taking a business loan from us. Here are some key advantages:
- Financial flexibility: This can include expanding your operations, purchasing equipment or inventory, hiring staff, or meeting working capital requirements.
- Cash flow management: With a business loan, you can bridge the gap between payables and receivables, ensuring smooth operations.
- Tax benefits: Interest paid on business loans is eligible for tax deductions, which can help reduce your taxable income.
In general, lenders typically prefer businesses with a minimum turnover of around Rs. 10 lakhs to Rs. 25 lakhs per annum for small business loans. However, this requirement may vary significantly depending on the lender, loan amount, and the nature of the business.
You may be able to obtain a business loan for salaried individuals depending on the lender you choose, subject to any applicable eligibility requirements.
The eligibility is based on factors mentioned below:
- Last 2-3 years of financials to get an estimate of business’s financial health
- Nature of the industry the business deals in and how has that industry performed in recent times
- Obligations of the company for instance the other installments (EMIs), credit limits, etc
- The company’s past credit history
