What is a Business Loan?
A business loan provides funding for business needs like startup costs, expansion, or operations. It can be secured or unsecured, with terms based on the business’s financial health. Used for inventory, cash flow, or investments, it’s tailored for commercial purposes and evaluated on revenue, credit history, and business plans.
Business Loan Interest Rate
Business loan interest rates depend on factors like the business’s credit profile, loan amount, repayment tenure, and lender’s policies. Lower rates reduce borrowing costs, so it’s important to compare offers from banks and NBFCs to find the best deal.
Secured Business Loans
Get Bigger Opportunities with Collateral-Based Loans
Secured business loans are ideal for businesses seeking larger loan amounts at competitive interest rates. By pledging assets such as real estate, equipment, or inventory as collateral, you gain access to:
Higher Loan Limits: Borrow whatever amount you want to support large-scale projects or capital investments.
Lower Interest Rates: Enjoy reduced rates due to the added security of collateral.
Flexible Repayment Terms: Choose repayment plans tailored to your cash flow and business goals.
Who Should Consider a Secured Loan?
Secured loans are perfect for established businesses looking to fund significant growth initiatives, purchase expensive equipment, or refinance existing debt at better terms.
Unsecured Business Loans
Quick and Convenient Funding Without Collateral
Unsecured business loans provide fast access to funds without requiring collateral. Ideal for small businesses and startups, these loans allow you to:
Borrow Without Risking Assets: No need to pledge property or equipment.
Fast Approval Process: Get funding quickly to meet urgent business needs.
Flexible Usage: Use the funds for marketing, inventory, payroll, or other operational expenses.
Who Should Consider an Unsecured Loan?
Unsecured loans are ideal for businesses with strong cash flow and credit history seeking short-term funding or smaller amounts for immediate needs.
Features and Benefits of a Business Loan
Flexible Usage: Funds can be used for various business needs like expansion, inventory, equipment, or working capital.
Loan Amount: Offers high loan amounts based on business requirements and financial health.
Collateral Options: Available as secured (with collateral) or unsecured (without collateral) loans.
Repayment Tenure: Flexible repayment options with short to medium-term tenures.
Quick Approval: Fast processing and disbursal for urgent business needs.
Interest Rates: Competitive rates based on business profile and lender policies.
Why Choose BigMudra for Business Loans?
Customized Solutions
We tailor our loan options to match your business goals.
Transparent Process
No hidden fees, just straightforward terms.
Expert Support
Our financial advisors guide you through every step of the process.
Fast Funding
Get the funds you need when you need them.
Business Loan Eligibility
To qualify for a BigMudra business loan, you typically need to meet the following eligibility criteria:
Age: 21-65 years (at loan maturity)
Business Age: Minimum 3 years (may vary by lender)
Annual Turnover: ₹90,000 to ₹250+ crore
Credit Score: Preferably 750 or above
Eligible entities include MSMEs, proprietors, LLPs, private and public limited companies, self-employed individuals, and professionals.
Business Loan Documents Required
Prepare the following documents for a smooth application process:
ID Proof (Voter ID, Driving License, Aadhaar, Passport)
PAN Card (individual/company)
Address Proof
Age Proof
Business continuity proof
Business registration documents
Recent photographs
Latest GST returns
6 months' bank statements
ITR for the last 2 years (with financial statements)
Entity-specific documents (e.g., partnership deed, MOA, AOA)
How to Calculate EMI for a Business Loan
To calculate your business loan EMI, use the formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1],- P = Principal loan amount
- R = Monthly interest rate (annual rate divided by 12)
- N = Loan tenure in months
Manual EMI calculations can be time-consuming and prone to errors. Instead, use an online EMI calculator for quick and accurate results. Just enter the loan amount, interest rate, and tenure. Tools like the BigMudra EMI Calculator instantly show your EMI, total interest, and repayment schedule. This helps you compare loan offers and choose the best one for your business.
How To Apply For Business Loan
Experience seamless loan processing with BigMudra. Our experts guide you through verification, ensuring instant fund access in your bank account.
Click the "Apply" button on this page
Create your account with your mobile number and basic details
Select loan preferences
Enter personal and business information
Complete KYC and submit your application
Our support team will guide you through the remaining steps
Fees & Charges
| Particulars | Charges |
|---|---|
| Interest Rate | 11% to 32% p.a. |
| Processing Fees | Up to 4% of the loan amount |
| Bonus Charges | ₹700 to ₹1200 per instance |
| Part Prepayment Charges | Up to 5% |
| Penal Charges | ₹8 to ₹12 per day |
| Stamp duty | As per state law |
| Annual Maintenance Charges | Up to 0.3% |
FAQs
What is a business loan?
At Big Mudra, we understand that every business is different and has different financial needs. That's why we offer Business Loans that are designed to be flexible and customisable, so you can get the quick funding required to grow your business. Whether you're new to business, experiencing a slowdown, or need funds for any other purpose, our Business Loans can help you get the money when you need it the most.
Can I get a business loan without collateral?
Yes! You can get a Business Loan without any collateral or security.
Am I eligible for a business loan?
You are eligible for a Business Loan if you fall under the category of sole proprietorship. However, the loan approval depends on the proper submission of documents, the basis of your financial history and our internal credit policy.
How long does it take for a business loan to be disbursed?
The business loan is disbursed within 24 hours from the time of loan approval.
How much EMI do I need to pay?
Your EMI depends on the loan amount and the tenure you selected for repayment.
What is the maximum amount I can take through a business loan?
You can currently take a business loan for up to INR 1 Cr.
How long can I take to repay the loan?
You can take up to 60 months to repay your business loan.
