Small Business Loan

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Small Business Loan in India

Small Business Loans are precisely Ideal for small businesses such as Retailers, traders, dealers, distributors, wholesalers, and service providers.

Small Business Loans can be availed when one needs a short term / small amount specific to business need, where documents required, time taken to process and disbursement to the customer business bank account is minimal. It can work as a perfect fit for various business enterprises as a source of fulfilling its working capital requirements in business or other business expansion needs.

At Grahaan Capital, we fully understand our customers and aim at providing solutions that are easy, quick and perfect to suit the customers needs. A Small Business Loan Application can also be made online in order to make the process even easier. Contact us to evaluate your business loan and other formalities related to business loans.

Features and Benefits of Small Business Loan

Tailored Loan Products: Provides flexible financing options that align with different business needs, helping small businesses manage operations, invest in growth, and address specific financial requirements.
Competitive Interest Rates: Reduces the overall cost of borrowing, making it easier for businesses to manage loan repayments without straining their finances.
Flexible Repayment Options: Eases the repayment process, ensuring that small businesses can repay loans in a way that aligns with their revenue cycles, thereby reducing financial stress.
Collateral-Free Options: Makes it easier for small businesses to access funds without risking valuable assets, which is particularly beneficial for businesses that may not have significant collateral.
Quick Approval and Disbursement: Provides quick access to funds, allowing small businesses to respond swiftly to opportunities, manage urgent expenses, or address cash flow gaps.
Supportive Financial Services: Provides small businesses with expert guidance and resources, helping them make informed financial decisions and achieve long-term success.

Business Loan EMI Calculator

Loan Amount:

50K 1Cr

Loan Term (months):

12 60

Interest Rate (%):

9.75 30%

Get Instant Fund

Eligibility Criteria for Small Business Loan

Get immediate approval for a business loan up to Rs. 1 Core. You can apply for our business loan online, as long as you meet some basic criteria mentioned below. Meet the simple requirements for business loan eligibility and complete the necessary documentation to receive the funds you require in as little as 24 hours* after approval.

Age: Minimum 21 years at the time of loan application & Maximum 65 years at the time of loan maturity
Nationality: Indian citizens, should not have defaulted on any previous loan(s) with any lender
Eligible Entities: Individuals, Startups, MSMEs, Sole Proprietorships, Partnership Firms, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers, and other non-farm income-generating business entities engaged only in the services, trading, and manufacturing sectors
Business Vintage: Minimum 1 year or above and your business should not fall under any list of blacklisted businesses.
Business experience: Minimum 1 year, business location to remain same
Annual Turnover: Preferably 6 lakhs per annum. Shall be defined by the Bank/NBFC
Credit Score: Preferably 700 and above as having higher credit scores improves chances of loan approval
Additional Criteria: Applicant must own either a residence, office, shop, or godown

* Charitable organizations, NGOs, and trusts are not eligible for a business loan.

Note: The above-mentioned eligibility criteria are for indicative purposes only. Actual eligibility criteria defined by Banks/NBFCs shall vary as per their sole discretion and shall be defined at the time of loan application submission.

Documents required for Small Business Loan

Documents required for business loans to establish your business identity, income, loan repayment capacity, and place of business. Here are the few common set of documents that you will need to submit when applying for a business loan:

KYC documents of applicants, partners, and co-applicants: Passport/ PAN Card/ Voter’s ID/ Aadhaar Card/ Driving License/ Utility Bills (Recent Water or Electricity Bills)
Address Proof: Business Vintage and Address Proofs
Income Proof: Last 6 months’ bank statement and Last year’s ITR for existing enterprises
Proof of Business: Business registration certificate, GST filing, Gumastadhara, trade licence, drug licence, TIN, VAT registration, Company PAN card.
Specific to Business Type: — Proprietorship: Proprietor’s PAN and Aadhar card copies.— Partnership: Partnership deed copy.— Pvt. Ltd./LLP/One Person Company: Specific documentation as required.
Any other document required by the lender *

Interest Rates & Charges of Small Business Loan

Although business loan rates and charges might differ significantly based on the credit history of the loan applicant and the business itself, the following table will provide you with a general indication of what to expect:

Particulars	Charges
Business Loan Interest Rates	9.75% p.a onwards
Loan Amount	₹1 Lakh to ₹1 Core
Loan Processing Fees	Minimum 2% plus applicable taxes
Lowest EMI per month	Starting from ₹2,112* per Lakh for 60 months
Loan Tenure	12 - 60 months
Prepayment/Foreclosure Charges	0%* If paid from own sources & 4% If paid from other sources
Default Interest	Minimum 3% per month
Repayment Instrument Dishonor Charges	Upto Rs. 2500/ + GST (if applicable) per bounce
Stamp Duty	At actuals (as per state)
* No Other Hidden Charges

Tips for Getting Small Business Loan

Demonstrate Strong Local Market Knowledge: Show lenders that you have a deep understanding of your local market, including customer needs, competitive landscape, and market trends.
Maintain Clear Financial Records: Ensure accurate and up-to-date financial documentation to demonstrate your business’s financial health to lenders.
Optimize Your Credit Score: Regularly monitor and improve your credit score by paying bills on time and reducing existing debt.
Understand Your Loan Purpose: Clearly define why you need the loan and how it will be used to grow or sustain your business.
Provide Collateral if Possible: Offering collateral can increase your loan approval chances and might get you better loan terms.
Compare Lenders and Loan Products: Research and compare different lenders and their loan products to find the most suitable terms and interest rates for your business needs.
Ensure Legal Compliance: Verify that your business complies with all legal and regulatory requirements, including proper registration, licenses, and tax filings, to avoid potential loan approval issues.

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Frequently Asked Questions (FAQs)

When can I opt for a Small Business Loan from Grahaan Capital?

The best time to apply for Small Business Loans is not tied to any specific time as it is a type of business loans. Whenever you have a requirement, you can go for Small Business Loan with us. Among the most frequent use of Small Business Loan are: working capital need, business enlargement, buying inventories, acquisition of fixed assets, etc.

What are the eligibility criteria for availing Small Business Loans?

Small Business Loans from us are available for self-employed individuals (proprietor, partners, directors).

In terms of Small Business Loan eligibility, you should know that we may stipulate fulfilment of particular minimum criteria such as net business income, age, business vintage, nature of business and owning a house / office/ shop depending on the person’s risk profile.

How long does it take to get a Small Business Loan?

Once you apply for a Small Business Loan with us, the required documents and proofs are verified, and the loan amount will credited to you at the earliest. It’s now easy to get an instant Small Business Loan from us to start your application.

How much of Small Business Loan am I eligible to receive?

The Small Business Loan amount that you can avail depends on certain factors. The loan amount an individual is eligible to borrow varies based on their banking, bureau score and business income. During the calculation of the loan amount, business entities, business income and liabilities are taken into account. You can always get in touch with us to know more on the subject.

How do I calculate my EMI for a Small Business Loan?

The easiest way to calculate the EMI on your Small Business Loan is to use our Business Loan EMI calculator. It is a free and easy-to-use tool that lets you know the exact EMI payable against the amount you borrow. To calculate the EMI, you must enter a few basic details in the calculator, such as interest rate, loan amount and loan tenure. Once you enter these details, the tool will display the results instantly.

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Small Business Loan