Eligibility Criteria:

Eligibility criteria for business loans may vary among lenders, but common approximate criteria include:

• Business Type: Sole proprietorship, partnership, private limited company, or public limited company.
• Business Vintage: Most lenders prefer businesses with a minimum operational history of 2-3 years.
• Annual Revenue: Typically, lenders require a minimum annual turnover of ₹10 lakhs to ₹1 crore.

• Profitability: Positive or stable business profitability is often considered.
• Credit History: A good credit score of the business enhances the chances of loan approval.

Required Documents:

Required documents for business loan applications generally include:

• Proof of Identity: Aadhaar Card, PAN Card, Passport, or Driver's License.
• Proof of Address: Utility bills, Rental Agreement, or Bank Statements.
• Business Registration: Certificate of Incorporation, Partnership Deed, or Trade License.
• Financial Statements: Income Tax Returns, Profit and Loss Statement, Balance Sheet, and Bank Statements.
• Business Plan: Detailed business plan with financial projections (if required).
• KYC Documents: PAN Card, Aadhaar Card, and Photographs of the business owner(s).
• Collateral Documents: Property documents or collateral-related documents (if applicable).

Where and How to Apply for a Business Loan:

Business loans can be applied for through various channels:

• Banks: Visit the nearest branch of a bank and apply in person.
• Online Lenders: Apply through the official website of online lenders.
• Loan Aggregators: Utilize online platforms that provide loan comparison and application services.
• The application process involves filling out the loan application form, submitting the required documents, providing business-related information, and presenting a well-prepared business plan if necessary. Lenders may conduct business assessments and verifications before approving the loan.

Interest Rate and Other Charges:

• The interest rate on business loans varies based on factors such as the lender, loan amount, tenure, creditworthiness of the business, and the type of loan (secured or unsecured).
• As of the current market trends, the average interest rate on business loans in India ranges from approximately 9% to 18% per annum.
• Other charges may include processing fees (around 0.5% to 2% of the loan amount), prepayment charges (if applicable), documentation fees, and charges for late payments. These charges differ among lenders and should be reviewed in the loan terms and conditions.