What is Business Loan ?
Volatile market trends and increasing business needs cause demand for urgent immediate cash-in-hand. A Business Loan designed for this purpose gives you the advantage to avail unsecured credit at competitive interest rates.
Whether you plan to invest in infrastructure investment or upgrade plant and machinery, a Business Loan caters to all your commercial needs.
Business Loan Features and Benefits
Affordable High-Value Capital
Well-known banks and NBFCs offer easy and quick short-term, medium-term, and long-term business loans as an ideal finance solution for your enterprise.
Withdraw only what you need and repay to suit your business fund flows at nil or low prepayment charges. You only pay interest on EMIs for the initial period of the loan and interest is charged only on the amount withdrawn.
Hassle-Free Quick Unsecured Loans
Business Loans are unsecured loans approved in 24 hours, which come to you with easy eligibility, and just a few documents.
Whether you’re looking for investment in infrastructure, expansion in operations, purchase of equipment or inventory, or working capital needs, you have the advantage to seek a multi-purpose business loan, all in one place.
Business Loans are collateral-free, for which your personal or business assets are not put to risk, and since this means no appraisals of assets for valuation, you have the quick approval and disbursal advantage.
Online Account Access
You’re simply free with the convenience of access to your business loan account for your loan statements and other details so that you can manage your loan from anywhere at any time.
Different Types of Business Loans for Your Varied Needs
Working Capital Loan
Working Capital Loans are finance designed to maintain healthy cash flows with unsecured finance to strengthen and grow your business without disruptions.
Plant and Machinery Loan
You can install and upgrade your business plant and machinery to the latest standards to meet your growing business needs with plant and machinery or equipment loans.
SME and MSME Loan
Small and Medium Enterprises are now in a position to expand operations, and scale business heights easily with SME and MSME Loans.
Business Loan for Women
Especially designed for the women entrepreneurs, Business Loans for Women offer high-value finance to support growing business needs of women.
Self Employed Professional Loan
Professionals such as Doctors, Chartered Accountants, and Architects are people who have little time at hand to attend to their professional finance needs. Hence, Self Employed Professional Loans are loans designed suit such a Professional’s financial requirements.
Micro Business Loan
Small business loans are a way to finance small requirements, and as such are designed to be repaid in shorter loans periods to suit your needs.
Business Loan Eligibility Criteria
Primarily an unsecured loan, a Business Loan empowers you to avail funds without collateral for infusion into your enterprise for purposes that you deem fit.
However, to avail such a facility, you need to fulfil certain eligibility criteria laid down by our Partner Banks and NBFCs.
- Minimum 18 years
- Maximum 65 years a time of Loan Maturity
- Resident Citizen of India with no Criminal Record
- Minimum 3 years Own Business Vintage
- Minimum Annual Turnover and Profit at Lender’s Discretion
- Registered Chartered Accountant Audited Balance Sheet Compulsory
- No Previous Default with any Financial Institution
- Credit Score of 700 & More
How to Operate
Business Loan Eligibility Calculator
Business Loan Eligible Entities
The following entities may avail of Business Loans at RA Capitals
- Resident Individuals
- Self-employed Professionals
- SMEs or Small and Medium Enterprises
- MSMEs or
- Small Vendors
- Private Limited Companies
- Public Limited Companies
- Sole Proprietors
Business Loan Rate of Interest
nterest Rate is a percentage of the Principal Business Loan amount payable to the lender as charges for borrowing. This Rate of Interest typically applies on the principal amount on an annual basis, which may be known as the Annual Percentage Rate or APR.
|Bank Name||Interest Rate||Processing Fee|
|HDFC Bank Ltd||15%||1.00%|
|IDFC First Bank||15%||1.50%|
|Axis Bank Ltd||15%||1.50%|
|Bajaj Finance Ltd||17%||2.00%|
|Dhanvarsha Finvest Limited||21%||2.00%|
|Aditya Birla Finance Ltd||18%||2.00%|
|Kotak Mahindra Bank Ltd||15%||2.00%|
|Standard Chartered Bank||16%||2.00%|
Business Loan Interest Rate Types
Banks and NBFCs offer two types of interest rates, namely fixed and floating. The EMI amount changes according to the type of interest rate a borrower chooses.
Fixed-Rate of Interest
When you opt for a Fixed Rate of Interest, the interest rate on your Business Loan remains constant throughout your loan period, and this allows you the freedom to plan your finances.
Floating Rate of Interest
Floating Rate of Interest changes according to the RBI lending benchmark, namely Repo Rate. This means, that although your EMI remain constant, your loan tenure may extend due to rate adjustments.
How to Calculate Interest on Business Loans
You may calculate Annual Interest on your Business Loans by using the following formula for calculating Simple Interest
SI = P x R x T / 100
P = Principal Amount, or Loan Amount
R = Rate of Interest or ROI
T = Time Period of the Loan
SI = Simple Interest
To calculate Monthly Interest on your Business Loan when the loan period indicates months, use the following formula
SI = P x R x T / 100
To calculate the Amount Payable with Interest Rate at the end of tenure the end of the maturity period, use the formula mentioned below
Total Amount Value = P x [1 + (R x T)]
Documents Required for a Business Loan
o prove your eligibility for a Business Loan, you will have to furnish documents with regards to each eligibility criteria.
To initiate the loans process, the following Documents you will require at hand to avail a Business Loan at the earliest.
Business Loans for Self-Employed, Non-Salaried, MSMEs, and SMEs
Self-Employed, Non-Salaried and SMEs seeking funds as Business Loan will have to furnish additional documents listed below to start the loans process.
- Proof of Business
- GST Registration Certificate
- Trade License Partnership Deed
- Article of Association
- Memorandum of Association
- Import Export Code
- Registration Certificate
- Professional Practice License for Doctors, Consultants, etc
- Registration Certificate of Establishment for Shops, Factories, and Other Establishments
- Business Address Proof
- Income Proof – Financial Statement Audited by CA
- Profit and Loss Account Statement
- Balance Sheet
- 6 Months Bank Statements
- 3 years Income Tax Returns
- Income Tax
- 3 years Income Tax Returns or Assessment Orders
Business Loan Balance Transfer
The Business Loan Balance Transfer is a process of transferring the outstanding balance of your business loan at your old rate of interest from your existing bank to a new bank of your choice offering you a lower rate of interest.
Business Loan Balance Transfer can be undertaken to reduce your EMIs by moving over to a lender who offers you a lower rate of interest or you can also choose to authorize such a transfer if you are dissatisfied with the services of your current lender.
Business Loan Balance Transfer Features
Better Rate of Interest
Easy Terms and Conditions
Extended Loan Tenure
Business Loan Balance Transfer Benefits
Lower Rates of Interest
A balance transfer allows you to transfer your debt to a bank charging you a lower rate of interest than your current lender. Resultantly, you enjoy better rates and reduced EMIs.
A balance transfer facility, which offers you a lower rate of interest, eventually materializes into decreased EMI payments. Thus you save a huge amount by paying lower value EMIs
Lenders offer you better services in terms of processing fees, waivers, last EMIs, etc. You might even find well-known lenders offering you better services, and customize your transfer facility accordingly.
Top Up Loan on Business Loan
Times arise when extra funds for multi-purpose uses are required when you have taken a business loan. Business loans give you access to funds for business purposes such as working capital, technological advancement, operations scale-up, etc. A top-up business loan on the other hand gives you the opportunity to avail extra funds over and above your existing business loan. A top up loan allows you to unburden your business by availing funds directly from your lender instead of making multiple loan applications for funds.
As an alternative to multiple debt requests, you simply have to request for a top up loan from your lender. Offers from NBFCs and Banks allow you the benefits of low interest rates, longer loan tenures, and quick processing for approval and disbursal of funds. This proves to be a one-stop solution for quick funds in emergencies. Take your pick of top up business loan options offered by Ruloans in association with well-known partner banks and NBFCs, and chat, email, or call 1800 2667576 to apply for a Business Loan Top Up.
Eligibility Criteria for a Business Loan Top Up
- You will be offered a top up business loan by your lender only when you have an existing outstanding business loan.
- Availing a top up business loan requires that you complete a stipulated period of paying a prescribed amount of your business loan.
- You are required to possess a good track record of repayments without overdue EMIs, and without missing EMI payments.
- The vintage or your business or your business should have been running for a stipulated period with a stable outlook.
- For eligibility to a top up business loan, a good credit score reflects a degree of the capacity to repay loans, and thus you will have to show a good credit score.
Documents Required for Business Loan
At Ruloans, Banks and NBFCs offer business loan top ups with less or no documentation only if you have an existing business loan depending on the requirements the lender prescribes. Here’s a list of common documents required for a top up on your business loan.