Which Company Offers The Best Small Business Loans For Startups?

Every startup needs money for working capital & for other operations. Read to know which company offers best small business loans only at IIFL finance.

2 Sep,2022 19:39 IST 90
Which  Company Offers The Best Small Business Loans For Startups?

Almost every startup needs money for working capital and other business operations from time to time. And, almost every startup faces a cash crunch, and quite often at that.

That is where a business loan can come in handy. It can help a startup tide over a crunch and keep its operations running smoothly so that the company grows its production and revenue, adds newer clients and pays its employees and vendors on time.

Where can a startup get a business loan? Startups have plenty of choice in this matter as India has dozens of commercial banks as well as hundreds of non-banking finance companies (NBFCs) looking to provide business loans.

So, how does a startup choose which lender to approach? To begin with, startups must first determine their loan requirements and repayment capacity. Then, they should compare various lenders, their loan approval processes, interest rates and other terms and conditions to find out which bank or NBFC matches their requirements.

For instance, state-run banks generally offer slightly lower interest rates than private-sector banks and NBFCs. But they also follow tedious loan approval and disbursement process and have onerous documentation requirements.

On the other hand, several private-sector banks and new-age NBFCs offer faster approval processes, better customer service and competitive interest rates. Among these, startups would do well to choose well-known, reputed and large lenders such as IIFL Finance.

The IIFL Advantage

IIFL Finance is one of India’s largest NBFCs. It is part of Mumbai-based IIFL Group, one of the largest financial services groups in India. The company provides a range of loan products to meet every requirement of borrowers.

IIFL Finance offers several loan products to meet startups requirements. The company not only offers competitive interest rates but also customizes repayment options to match a startup’s cash flow cycles. This helps in making the repayment process smooth, and the startup does not have to struggle to pay the installment every month.

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IIFL Finance biggest advantage is that it follows a fully digital process for business loans, from application to approval and disbursal and then to repayment. This means startups do not have to visit the company’s branch and can finish the entire process online, thus saving precious time and effort.

Moreover, IIFL Finance even allows prospective borrowers to reach out via WhatsApp. The WhatsApp facility makes applying for a small business loan as easy and quick as chatting with your friends or family. This facility allows startup to avail business loans up to Rs 10 lakh in less than ten minutes, with minimal documentation.

Unsecured Business Loans

An unsecured business loan doesn’t require the startup to pledge anything with the lender. This can be a very good option for a startup which may not have the necessary collateral to pledge.

A startup can take an unsecured business loan up to Rs 30 lakh from IIFL Finance if it is engaged in manufacturing, trading and services, and does not need to worry about risking their assets. The startup can complete the entire application process with just a few clicks online and the loan gets disbursed within 48 hours.

For loans up to Rs 10 lakh, one needs to have KYC documents, PAN card, and bank statements. For loans above Rs 10 lakh and up to Rs 30 lakh, the borrower would also need to submit the company’s GST registration certificate.

Secured Business Loans

A startup can also take a secured loan from IIFL Finance by pledging any movable or immovable property.

IIFL Samman Loan Against Property allows a startup to borrow as little as Rs 5 lakh and up to Rs 35 lakh. The loan can be repaid with a long tenure of as much as 10 years.

Based on their eligibility and financial requirement, borrowers can also opt for a regular Loan Against Property. Under this IIFL offers a maximum loan of as much as Rs 10 crore for up to 10 years with simple repayment options.


As a startup, you can ill afford to waste your time and effort in dealing with lenders that follow a long and tedious process to approve a small business loan. So, you should choose a reputable lender that can offer you the most convenient and quickest financing option with minimal paperwork. IIFL Finance matches all these requirements.

You have the option for taking either a collateral-free business loan or one that is secured against an asset. IIFL offers business loans as low as Rs 5 lakh and up to Rs 10 crore with repayment period that can stretch up to 10 years.

IIFL Finance follows a simple process. You don’t need to go to the company’s branch and can fill in a small online application form and keep identity and address proof documents at hand. After a quick verification, the loan amount is credited instantly into the startup’s bank account. This makes IIFL Finance the best business loan provider.

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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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