All About Start Up Loan for Your New Business

The pervasive entrepreneurship spirit in India has driven growth for Indian economy, making it the 3rd largest start-up economy after the US and the UK.  As per a report, 86% of countries consider India as a suitable place for start-ups, which is 30% above the global average for other start-up economies.
Supporting this growing culture, funding options for start-ups has also seen a massive increase of 108% from 2022 to 2022. The number’s only increasing in the present. In this scenario, start up loans come as a smart funding option to give impetus to your already running entrepreneurial venture.

What is a start-up business loan?

A start-up business loan caters to all necessary funding requirements of a new venture. It is a customised business finance that can help meet various business expenses like infrastructure costs, operational finance, overhead expenses, inventory maintenance and many more.

Know the attractive features of start-up business loans

Start-up business loans come with attractive features and benefits that make them suitable for financing your business. Check them out.
1. Collateral-free loan
Start-up business loan being an unsecured loan does not require you to pledge any collateral to avail it. With the right eligibilities, it is easy to get a collateral-free business loan.
2. Affordable rates of interest
Lenders like Bajaj Finserv make availing a start-up business loan affordable with competitive rates of interest, which are one of the lowest in the financial market.
3. Flexible repayment tenor
Start-up business loans are also easy to repay with a flexible repayment tenor of 12 to 60 months. So, you can give your business the much-needed boost immediately with this loan and repay it in easy EMIs over the loan tenor.
4. Quick and easy approval
With the necessary documents and required eligibility, you can get your start-up business loan approved within 24 hours of application.
5. Flexi Loan facility
Flexi Loan facility offered by lenders makes availing their business finance both convenient and affordable. With this new-age feature, you can go for multiple withdrawals of a pre-sanctioned loan amount. You need to pay interest only on the amount you borrower and prepay within the tenor as per the cash flow of your business.

Eligibility criteria and documentation for start-up business loan

Qualify for the loan by meeting simple eligibility criteria.
  • You should age between 25 and 55 years.
  • Your entrepreneurship venture should have a business vintage of a minimum of 3 years.
  • The income tax return for your business should be filed for at least for the past year.

Apart from this, you must also be a creditworthy borrower with a credit score of 750 and above.

The customer profiles that qualify for start-up business loans include the following.
  1. Self-employed professionals that include practising chartered accountants, allopathic doctors, architects and company secretaries.
  2. Self-employed non-professionals that include proprietors, manufacturers, traders, service providers and retailers.
  3. Entities that include LLPs, partnerships, closely held limited and private limited companies.

Once you meet the eligibility criteria mentioned above, you can apply with the necessary documents. Here’s the list

  • KYC documents such as Aadhaar card, Pan card, Voter ID, Passport, etc.
  • Proof of business/certificate of practice.
  • Necessary financial documents like balance sheet, profit and loss statement, etc.
  • Statement of bank account for the previous month.

So, prepare your start-up business for the credit and apply for it. Make sure to check the reasons why lenders deny loans to business owners before applying to minimise the risk of rejection of the application.

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