Yes, any individual who is 18 years and above is eligible to avail business loan.
The minimum loan amount offered is Rs. 50,000 under MUDRA loan category and maximum loan amount can exceed Rs. 50 crore, depending on the requirements.
The maximum age of availing a business loan is up to 65 years. Whereas, there are very few banks that sanction loan for people who are 70 years of age, or below.
Interest rate offered by various banks and NBFCs starts from 8.45% onwards.
You can repay the loan amount in minimum 12 months and maximum up to 10-15 years, depending on the respective bank or NBFC.
No, you are not required to submit any collateral to bank or NBFC.
The foreclosure charges and processing fees varies from bank to bank. Every bank and NBFC has different charges, so you need to check online from their official website.
Business loans can be availed for small or large scale businesses. If you are willing to start a new business, expanding the existing business, buy machinery and other capital goods, expand the business operations and purchase equipment you can apply for business loan from your preferred provider.
There are different kinds of business loans offered by banks and NBFCs and that include loans for self-employed and MSMEs, Mudra loans, Loans under PMMY and Stand-Up India, Working Capital loans, Term loans, SIDBI loan scheme, invoice discounting, letter of credit, loan for equipment purchase, etc.
Yes, women entrepreneurs too can avail business loan which are specifically designed for women. Most of the banks and NBFCs offer women entrepreneur centric business loans.
Nowadays, banks are giving attractive schemes to women entrepreneurs. These lending schemes are exclusively for women and it gives them relief in terms of interest rates and collateral. Some of the banks also have special departments for women entrepreneurs where they provide them business consulting, training and counseling along with avenues for marketing and showcasing of their products. Women entrepreneurs whose ownership is less than 50% in the company are not eligible to avail the benefits of the women’s special schemes.
Some of the popular loan schemes for women entrepreneurs are as follows:
Business Loan Interest Rates are mostly fixed, which means the Interest Rate will not change for the entire loan tenure. The business loan interest rate offered by banks and NBFCs starts at 8.45% onwards and can go up to as high as 24% onwards,depending upon the loan amount or applicant’s requirements.
Business Loans being unsecured loans do not require any collateral from the applicant. However, there are specific and very few loans in which plant, machinery or raw material need to be provided as collateral. Applicant does not require providing any asset like car or house to avail business loan.
The loan applicants enjoy flexible repayment tenure that goes up to 10-15 years, making it more preferable over other loans. The applicant also have an option of loan pre-payment in which he/she can foreclose the loan by paying some additional charges defined by the respective bank or NBFC.
