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    Loans for Business

    Lenders or banks provide business loans to businesses or new startups for various needs such as expansion, equipment purchase, or operational expenses. They come with a set repayment term and interest rate. Eligibility criteria may include a good credit score, a solid business plan, and a stable annual turnover. They offer benefits like flexible repayment terms and competitive interest rates.

    Benefits of business loan

    Get a loan on your terms. Choose from flexible EMIs and tenure options.

    100% digital process

    Submit all your details and documents online.

    Instant Loan approval

    Get your Loan application approved!!

    Flexible EMIs and tenure

    Choose the loan tenure and EMI amount as per your need.

    Why choose Airtel for a Business Loan?

    Airtel provides flexible loans with competitive interest rates. Its streamlined application process, quick approvals, and minimal documentation make it a go-to choice for businesses. Plus, it offers customizable repayment schedules to ease the financial burden.

    Steps to Apply and Get a Personal Loan for Business

    Follow the simple steps mentioned below

    Open Airtel Thanks App

    Find Shop > Airtel Finance

    Select Flexi Credit

    Fill in your basic details

    Get best offer

    Basis profile verification

    Complete the KYC

    Link your bank account

    Business Loan EMI Calculator

    Enter loan amount, interest rate, and tenure to get instant EMI results. This helps in budget planning and managing finances better. A must-use before applying for a business loan.

    Business Loan amount
    Enter the loan amount

     

    Tenure plan
    Choose your tenure plan

    Mo

    Rate of interest
    Adjust your interest rate

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    Principal

     

    Interest

     

    Features of Business Loan

    With Airtel Flexi Credit, you get below

    Personal loan amount

    ₹10,000 to ₹9,00,000

    Interest rates

    Starting from 11.75% p.a.

    Business Loan Tenure

    03 to 36 months

    Credit disbursal

    Within 24 hours

    100% online

    No paperwork

    Low processing fee

    2% GST

    Business Loan Eligibility Criteria

    One must be between the age-group of 21 and 65 to be eligible for a Business loan.

    Flexible employment type

    Business loans from Airtel Flexi Credit are available for salaried and self-employed individuals

    Monthly income criteria

    Anyone with a monthly income of ₹13,500 or more can apply

    Short term loan limit

    If you are looking for a loan between ₹10,000 to ₹9,00,000, then Airtel Personal Loan is perfect for you!

    Business Loan- FAQs

    What types of business loans are available?

    There are nearly 10 types of business loans available in India and they are as follows-


    • Term Loans (Short-term, long-term loans)

    • Cash Credit

    • Overdraft

    • Working Capital Loan

    • Unsecured Business Loan

    • Startup Loan

    • Business Loan against property

    • POS Loans or Merchant Cash Advance

    • Letter of Credit

    • Project Loans

    How do I determine how much money I need to borrow for my business?

    Determining how much money you need to borrow for your business involves several steps:

     

    Business Plan: Firstly, you need a robust business plan. A business plan will help you understand your business needs better and predict potential expenses and revenues.

    Budgeting: Create a detailed budget for your business. Include all potential expenses, from rent and salaries to supplies and utilities, as well as your projected income.

    Cash Flow Projection: This is an estimate of the money you expect your business to bring in and payout over a period. It will help you understand how much capital you need to keep the business running.

    Consider Unexpected Costs: Always anticipate unexpected costs and include a buffer in your loan amount to cover them.

    Existing Resources: Deduct your savings or any existing resources that you plan to invest in your business from the total amount calculated above.

    Loan Repayment: Consider your potential to repay the loan. You don’t want to burden your business with debt.

    Remember, every business is different, and the amount of money you need to borrow will depend on various factors such as your industry, business size, and location. It might be beneficial to consult with a financial advisor or accountant.

    What are the interest rates and terms associated with business loans?

    The interest rates and term period may differ depending on the type of business loan you apply for. They could begin from 8% and go up to 30% based on various factors like your credit history, amount of loan, tenure, etc.

    What are the eligibility criteria for getting a business loan?

    The eligibility criteria may slightly differ from one bank to the other. However, to explain the basic eligibility criteria for a business loan, the following factors are crucial-

     


    • The individual must be of Indian nationality

    • Must have an existing business running for 3 years

    • Must possess a decent CIBIL score

    • Age limit between 24-80 years

    • Must possess KYC documents, including Aadhar, Passport, PAN card, etc.

    How do I improve my chances of getting approved for a business loan?

    Improving your chances of getting approved for a business loan involves several steps:

    Good Credit Score: A solid credit history demonstrates to lenders that you are reliable and can manage debt effectively.

    Solid Business Plan: Banks and lenders want to see that you have a well-thought-out plan for your business. This includes an overview of the business, market analysis, sales and marketing strategies, and financial projections.

    Cash Flow and Revenue: Lenders are more likely to approve loans for businesses that have a steady cash flow and strong revenue. This shows that you will likely be able to repay the loan.

    Down Payment: If you can make a significant down payment, this can also increase your chances. It reduces the lender’s risk.

    Business Experience: Lenders prefer borrowers who have experience in the business they are in or have been in business for a few years.

    Complete Application: Make sure all the information in your application is accurate and complete. Any errors or omissions can lead to delays or a rejection.

    Remember, every lender has different criteria, so it’s important to do your research and understand what each lender is looking for.

    What documents and information will I need to provide when applying for a business loan?

    When applying for a business loan, you need to provide the following documents and information:

    Business Plan: A thorough business plan gives lenders insight into your business, illustrating your strategy, market analysis, and financial projections.

    Personal and Business Credit Reports: Lenders usually check both these reports to assess your creditworthiness.

    Financial Statements: This includes balance sheets, income statements, and cash flow statements for the past 2-3 years. If your business is new, you may need to provide projected financial statements.

    Bank Statements: Lenders often require both personal and business bank statements to understand your financial behaviour and the business’ cash flow.

    Tax Returns: You’ll need to provide both personal and business tax returns for the past 2-3 years.

    Legal Documents: These may include your business license and registration, articles of incorporation, contracts with third parties, franchise agreements, and any commercial leases.

    Collateral Information: If you’re applying for a secured loan, you’ll need to provide details about the collateral that you’re offering.

    Ownership and Affiliations: Lenders will want to know the ownership structure of your business and any affiliations with other companies.

    Business Resume: Some lenders may want to know about you (and your management team’s) business experience.

    Loan Application Form: Many lenders have their loan application form that you will need to fill out.

    Remember, requirements can vary by lender and the type of loan you’re applying for. It’s always a good idea to check with your lender to confirm what you’ll need to provide.

    How long does it typically take to get approved for a business loan?

    The loan approval may differ depending on the nature of your business loan. It usually takes a few days to a couple of weeks for the business loan to get approved. Certain lenders provide faster processing of small amount loans, whereas, for large loans, it may take a bit longer for documentation and evaluation.

    Are there any fees associated with taking out a business loan?

    Usually, banks/other financial institutions charge a fee of 2.5-3% on the principal amount for processing a loan application. This fee is non-refundable in nature and it is a one-time cost.

    Can I use a business loan to start a new business?




    Several banks offer business loans to start a new business. Therefore, it is crucial to have a solid business plan in place along with a decent credit history.





    What are the risks associated with taking out a business loan?

    Starting a new business is always a risqué move especially when you do not have a strong financial background. So if you’re planning to go for a business loan, you need to consider several risk factors. You could land in high debts if you default on your loan payments. You could lose collateral, your personal assets could be at risk if you don’t repay your loans on time.

    Can I repay my business loan early without penalty?

    Most business loans do not have a prepayment penalty which means you can repay the loan amount anytime without having to pay the penalty. However, it’s advisable to check with your lender before taking a business loan to be sure of the no penalty on prepayment clause.

    How does my personal credit score affect my ability to get a business loan?




    Your personal credit history determines your spending habits and your financial positioning. Especially in cases of small businesses, lenders or banks may want to study your personal credit profile as it is a deciding factor to sanction a business loan for you.





    What happens if I default on a business loan?

    If you default on a business loan, your credit score will be impacted negatively and you may not be able to secure any loan in future. Also, if you are repeatedly defaulting on your loan repayments, then the lender may also start legal proceedings to recover the loan amount.

    Are there any government programs or grants available to help small businesses obtain financing?

    Yes, various government programs such as the Pradhan Mantri Mudra Yojana scheme offers loan amount of up to ₹10 lakhs to micro, small, and medium sized companies to start their business dream.

    Personal Loan Lending Partner - Airtel Flexi Credit

    What is a Business Loan?

    A Business Loan is a specific type of loan designed to assist businesses with their financial needs. These business loans are usually obtained to start a new business, expand existing operations, purchase equipment, or manage day-to-day expenses. The bank or lender provides a certain amount of money that should be repaid with interest over an agreed period.

    Eligibility Criteria to Apply for Business Loan


    To apply for business loans, a set of eligibility criteria must be met. This usually includes a good credit score, a solid business plan, a minimum annual turnover, and a certain period of business operation. For new business loans, a strong business proposal and financial projections may be required.

    What are the Business Loan Interest Rates?


    The interest rates on business loans vary depending on various factors like the loan amount, tenure, the financial status of the business, and the lending institution’s policies. The rate of interest starts from 8% and can go up to 30% for different lenders or banks offering the loan. It’s essential to compare different rates before applying for a business loan to ensure you get the most affordable deal.

    Calculate EMI for Business Loans


    EMI, or Equated Monthly Installment, for business loans can be calculated using the loan amount, tenure, and interest rate. There are numerous online EMI calculators available that can help you determine your monthly payments.

    What is the procedure to apply for a Business Loan?


    To apply for a business loan, start by evaluating your needs and eligibility. Next, gather all the necessary documents, such as business financial statements, proof of business registration, and personal identification documents. Submit your application to the chosen lender and wait for their response. Some lenders even offer instant business loan approvals.

    Key Features and Benefits of Business Loans


    Business loans offer numerous benefits, such as flexible repayment terms, competitive interest rates, and the freedom to use the loan amount for any business-related expenses. They can be a great way to kickstart business growth, especially for new businesses.

    List of Documents Required for a Business Loan


    The documents required to apply for business loans may include a completed loan application form, proof of business existence, financial statements, tax returns, and a detailed business plan. If it’s a fresh startup, additional documents like projected financial statements might be required to get a business loan.

    Fees and Charges for Business Loan


    Apart from the interest rate, there might be other fees and charges associated with business loans. These include processing fees, late payment charges, prepayment fees, and charges for other services. Generally, banks/lenders may charge a fee of 2.5-3% on the principal amount for processing a loan application. This fee is non-refundable and has a one-time cost. Ensure to understand these additional costs before applying for a business loan.

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