Business Loan

Collateral-free business loans of amounts up to Rs. 2 crores can be availed by the citizens and residents of Mumbai at an interest rate starting from 16% p.a. Business loans, MSME loans, Working Capital loans, and various other credit facilities are offered to the residents by the Private and Public Sectors Banks, NBFCs, Micro Finance Institutions (MFIs), Small Finance Banks (SFBs), Regional Rural Banks, etc.

Eligibility Entities & Criteria

The following entities can avail business loans in Mumbai:

• Individuals, Business Owners, Entrepreneurs, Startups, Self-employed Professionals, SMEs & MSMEs
• Artisans, Traders, Retailers, Manufacturers, Shopkeepers, Small Vendors & Retailers
• Private and public limited companies, Sole Proprietors, Private Limited Companies, and Partnership Firms engaged only in the Manufacturing, Trading, or Services sectors

Basic eligibility criteria to meet before applying for a business loan are—

• Minimum age limit of the applicant should be at least 18 years and the maximum up to 65 years at the time of loan maturity
• Minimum Annual Turnover and profit depend on lender’s requirements
• Current Business experience should be a minimum of 2 years
• Business should be operations and in profit for last 1 year
• Applicants with no previous defaults with any financial institution

Documents Required for Loan Application

o sanction the applied Loan, the lender needs some documents to verify the authenticity and credibility of the loan seeker. Thereby, some required documents are—

• Filled application form with passport-sized Photographs
• Identity Proof (Passport/Voter’s ID/Driving License/PAN Card/Aadhar card)
• Address Proof (Latest Utility Bill/Ration Card/passport)
• Income proof: Last 1 year ITR, Last 2 years’ P&L statement and Last 6 months’ bank statement
• Business address and vintage proofs
• Company establishment certificate
• Any other document required by the lender

FAQs

Ques: How is my loan eligibility counted?

Ans: The credit scores of the entity and the last 1 year’s financial report and your ability to repay the loan on and within given time will count as your eligibility to get business loan.

Also Check: eligibility criteria on business financing in India

Ques: What is the Minimum and Maximum loan limit offered for business loan?

Ans: There is no minimum loan amount limit to borrow, however, most of the collateral-free loans are offered for the maximum loan amount of up to Rs. 2 crore. The loan amount sanctioning depends on your business size and eligibility and upon the terms and conditions of the respective bank, NBFC, or financial corporation.