Business Loan For Startups

India is revolutionising its business spectrum through innovative startups, contributing positively to India’s economic growth. Currently, India is ranked third worldwide in the startup ecosystem, with over 75,000 registered startups. However, these companies need constant capital to fund business operations.

Like other businesses, startups also require high capital to invest in various aspects, such as working capital, advertisement, marketing, manufacturing, acquisition, or expansion. Hence, business owners look for the ideal startup business loan to fulfil their capital requirements. Business loans for startups allow entrepreneurs to raise immediate capital to cover their startup expenses.

IIFL Finance offers comprehensive business loans for startups with attractive interest rates where business owners can raise Rs 30 lakh within 48 hours.

Startup Loan EMI Calculator

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Features and Benefits For Startup Business Loans

Startups are capital heavy. They need to market and promote the company to differentiate their business from other startups. Therefore,they take startup business loans that can assist in achieving their goals. Here are the features and benefits of a loan for a startup:

No Collateral

Availing a loan for women does not require pledging any asset as collateral.

Quick Disbursal

The startup business loans are approved within 30 minutes and disbursed within 48 hours.

Repayment

Startup owners can repay their business loans through affordable EMI options.

Eligibility Criteria For Startup Business Loans

Lenders such as NBFCs or banks review business loans for startup applications based on their set eligibility criteria. If you are looking to avail a startup loan for a new business, you must fulfil the listed-below startup loan eligibility criteria:

  1. You have an established business operating for more than six months at the time of application.

  2. The minimum turnover is Rs 90,000 in the last three months from the time of application.

  3. The business does not fall under any category or list of blacklisted/excluded businesses.

  4. The office/business location is not on the negative location list.

  5. Charitable organisations, NGOs, and trusts are not eligible for a business loan.

Documents Required For Startup Loans For Business

The approval of a loan for a startup requires completing KYC verification, where the business owner has to submit certain documents. Here are the documents required for a startup loan for a new business:

KYC documents – Identity proof and address proof of the borrower and all co-borrowers

PAN Card of the borrower and all co-borrowers

Last (6-12 Months) months bank statement of main operative business account

Last (6-12 Months) months bank statement of main operative business account

Additional document(s) for credit assessment and processing the loan request

GST Registration

Previous 12 months’ bank statements

Proof of business registration

PAN Card and Aadhar Card copy of the Proprietor(s)

Deed copy and company PAN Card copy in the case of partnerships

Business Loans For Startups Interest Rates

Startup business loans must be repaid by business owners with interest within the loan tenure. These interest rates depend on several factors, such as the desired loan amount, the business financials, credit score, turnover, loan tenure, etc. The factors result in different interest rates for various types of startup business loans.

Here are the business loans for startup interest rates:

Rate of Interest 11.25% - 33.75% p.a.
Loan processing charges: 2% - 4% + GST*( Additional Upto ₹500 will be charged as Convenience Fees )
Cheque/ ACH Return charges: ₹500/ + GST* per instance
Cheque/ ACH swapping charges duplicate no- dues certificate: ₹500/ + GST* per instance
Penal Interest 24% per annum

How To Avail Startup Business Loans?

Here is the process to avail of business loans for startups in India.

  • Visit IIFL Finance’s website and navigate to the business loan section.

  • Click “Apply Now” and fill in the business loan for a startup application form.

  • Submit all the relevant documents needed for completing KYC.

  • Click on the “Submit” button to complete the loan application process.

  • After review, IIFL Finance will approve the loan in under 30 minutes and disburse the amount within 48 hours into the borrower’s bank account.

Business Loans for Startups FAQs

You can avail of two forms of business loans for startups: Term Loans and Working Capital Loans. Working capital loans are short-term whereas term loans are long-term. Furthermore, there are government startup loans offered by the Indian government.

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You can get business loans for startups in India by finding an ideal bank or NBFC which offers such loans with affordable interest rates.

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Yes, for the approval of the startup loan, it is mandatory to have a business plan before applying.

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The venture must be operating for a minimum of six months before applying for business loans for startups.

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With IIFL Finance’s business loans for startups, you can avail of a maximum loan amount of Rs 30 lakh

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There are numerous government startup loans such as Mudra Loan Scheme, The Credit Guarantee Scheme (CGS), the Stand-Up India Scheme, Credit Link Capital Subsidy Scheme, etc.

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Yes, IIFL Finance offers business loans for startups without collateral.

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Among various types of loans, such as personal loans, and gold loans, a dedicated startup business loan can be the best for a startup business in India.

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