E-commerce Business Loans

India has a vast and rapidly expanding market with growing internet users and smartphone penetration. The country's population of over 1.3 billion people presents a significant customer base for e-commerce businesses. The rising middle class, increasing disposable incomes, and changing consumer preferences towards online shopping make it an opportune time to tap into this market. Starting an e-commerce business in India is relatively easier and more cost-effective than setting up a physical retail store. This makes it more accessible for entrepreneurs and small businesses to enter the market.

IIFL Finance understands the nuances of setting up an e-commerce business and hence offers business loans that are tailored to every requirement.

An e-commerce business loan is a type of funding provided through a business loan to web or online-based businesses.

E-commerce Business Loan Features and Benefits

Small business loans for e-commerce offer several benefits and features that can be advantageous for online retailers. Here are some of the key benefits and features:

  1. Provides immediate working capital up to INR 50 lakhs to cover operational expenses

  2. Fuels business expansion and growth by funding initiatives

  3. Helps bridge cash flow gaps, ensuring smooth operations and preventing disruptions

  4. In the majority of cases, sellers' collateral is not even required

  5. Processing is as quick as within 48 hours and simpler than at traditional banks

  6. Compared to other loan forms, the interest rates are significantly lower

  7. No restrictions on the physical location of the company

E-commerce Business Loan EMI Calculator

Calculate your EMI and choose the most suitable product for you

E-commerce Loans Eligibility Criteria

Various qualifications must be satisfied in order to submit an application for a loan for e-commerce business in India. Before submitting an application, reviewing all the information carefully is essential.

  1. If your business is at least six months old, apply now

  2. Please provide proof of your recent quarter's turnover of at least INR 90,000.

  3. Make sure your business is not omitted or on a blacklist

  4. Stay away from unfavourable areas for your workplace or business

  5. Sorry, no trusts, NGOs, or charities are permitted

Documents required for E-commerce Business Loans

In order to ensure a smooth transition of your e-commerce business loan, here are a few essential documents that will be required:

  1. KYC records of you and your co-borrower

  2. Mandatory PAN card of you and your co-borrower

  3. Bank statement for the most recent 6 to 12 months for the main business account

  4. Signed copy of Standard terms (Term Loan Facility)

  5. Additional document(s) for processing loan requests and credit evaluation

  6. GST Registration details

  7. Copy of the owners' PAN and Aadhar cards, as well as their most recent 12 months' worth of bank statements

  8. Proof of a company's registration

  9. Copy of the partnership contract and the company's PAN card

E-commerce Loan Interest Rates

To sail smoothly through the cut-throat environment of the e-commerce world, IIFL Finance offers e-commerce small business loans in India at attractive interest rates. While they are subject to market risks and conditions, these loans are specifically designed to meet your unique business goals.

How to Apply for E-commerce Business Loan

IIFL Finance offers a seamless process to apply for ecommerce lending. Here's what you need to do:

  • Go to the business loan section of the IIFL Finance website.

  • Click "Apply Now" and complete the form.

  • Submit all the necessary paperwork to complete KYC.

  • Click the "Submit" button.

  • Following evaluation, IIFL Finance will grant the loan in under 30 minutes and deposit the money into your bank account within 48 hours.

IIFL Business Loan Related Videos

E-commerce Business Loan FAQs

Yes, you can. E-commerce business loans are specifically designed for online businesses.

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An e-commerce business loan is a type of funding provided through a business loan to online-based businesses or eshops.

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Business loans typically have higher interest rates and are secured. E-commerce loans are unsecured and free of collateral. Additionally, the processing fees and the interest rates are comparatively lower for e-commerce business loans.

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Like all other loans, e-commerce business financing also have an interest rate. Typically, these loans are taken for a short term. The interest rate could range anywhere between 12.75% to 44% p.a.

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Here are some major benefits of e-commerce business loans:

  • Flexible repayment terms are available.
  • These are small loans that meet the urgent need for working capital.
  • E-commerce loans are promptly and easily disbursed. 
  • Since an e-commerce loan is unsecured, little documentation is required.
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The business should be registered and exist for at least 6 months with a stable revenue/income representing a growth pattern. It should not be a venture for charitable purposes. The company should not be blacklisted or located at an undesirable spot. Every financial institution has its own set of eligibility criteria. It is better to check with them before you begin the application process.

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