A Business Loan is a financial product designed to help businesses meet various needs such as working capital, expansion, equipment purchase, or operational costs. In India, these loans are offered by banks, NBFCs, and fintech lenders to both small and large enterprises.

📦 Types of Business Loan Products in India:

Loan Type	Description
Term Loan	Lump sum borrowed for a fixed tenure, repaid in EMIs
Working Capital Loan	For daily operations like inventory, payroll, etc.
Overdraft Facility	Flexible limit on current account; interest only on the used amount
Line of Credit (LOC)	Pre-approved limit, withdraw as needed
Loan Against Property (LAP)	Secured loan using commercial/residential property
Equipment/Asset Financing	For the purchase of machinery, vehicles, etc.
Invoice Discounting	Advance against unpaid invoices
Merchant Cash Advance	Based on future credit/debit card sales
MSME Loan	Specifically for Micro, Small & Medium Enterprises
Startup Loan	For early-stage ventures (some backed by SIDBI or government schemes)

📊 Key Features:

• Loan Amount:₹50,000 to ₹5 Crore (varies widely by lender)
• Interest Rates:9% to 24% p.a. (based on profile and security)
• Tenure:1 to 10 years
• Collateral:Both secured and unsecured options are available
• Processing Time:As quick as 24–72 hours for unsecured loans

🧾 Eligibility Criteria:

• Business vintage of at least 1–3 years
• Minimum turnover (varies: ₹10–₹50 lakhs+)
• Good credit history (CIBIL score usually 650+)
• Valid business registration and financial records

📑 Documents Required:

• KYC of business and owners
• Business registration certificate
• ITR for last 2–3 years
• Bank statements (6–12 months)
• GST returns, balance sheets, P&L

🏦 Top Lenders in India:

• Banks:HDFC Bank, ICICI Bank, SBI, Axis Bank, Kotak
• NBFCs:Bajaj Finserv, Indifi, Lendingkart, Tata Capital, NeoGrowth
• Government Schemes:
  • CGTMSE(Credit Guarantee Fund Trust for MSEs)
  • Stand-Up India
  • Mudra Loans (Shishu, Kishore, Tarun)