Business Loan- Apply for Business Loan online Instant Approval & Easy Process | ReferLoan

Business Loan

Get Business Loan for business growth

Get Business Loan as in the entrepreneur era, there are many businesses coming up in India, but the growth of the business determines the future of an organization, and to make future new decisions and Ideas need to implement and to work on that idea financial support is required. So, for the support get a Business Loan for business growth and take your business to the next level.

The business loan supports all the startups, as well as an ongoing business and also supports with women entrepreneurs and the maximum funding provided by the business loan is about Rs.2 Crore according to the eligibility of an applicant with that we will understand everything about the business loan and how to apply for a business loan as well.

Details about business Loan

All this vary from different Banks and NBFCs and is decided according to

  • The total Loan amount to be paid by ReferLoan on behalf of different banks and NBFCs is Rs.2 Crore.
  • The repayment of Loan to the Bank is maximum up to 5 Years
  • Processing fee while processing of business loan starts from 1% to 3% rates
  • The minimum Business vintage offered is 3 Years
  • Foreclosure charges are different from bank to bank and can be done after 6 months only.

Best Features to take Business Loans

There are several features for applying for a business loan and those features are as follows:

  • The business purpose: the business loan is very different in case of other loan options because people apply for Business Loans for particular business purpose, the purpose may be uplifting of business to the next level or to implement new ideas into the current business, growth of infrastructure of the business or need to buy some advanced multipurpose technology or machinery and many more.
    • The Purpose of taking business loans is not only for big businessmen but small segment business people can also apply for a business loan with easy eligibility criteria.
  • Huge Business loan amount: every loan always depends on several things like the CIBIL of an applicant, the documents, business turnover, age, and many more. When every criterion in business loan matches with the bank policy then a huge business loan is to be provided to the applicant without any problem. The bank will also decide the amount of the loan according to the vision of the company. If the business is in profit according to the current balance sheet and upcoming cash flow which is to be projected for the upcoming fiscal year which also creates huge eligibility for the applicant to get a huge loan amount.
    • For more details regarding business loans – apply for a business loan and ReferLoan executive will provide a full solution.
  • Rate of Interest in Business Loan: as Rate of Interest always become a major factor while applying for a loan because the lesser the number the easier it becomes to repay the loan amount and the Rate of Interest in a Business Loan totally depends upon the eligibility criteria of one applicant like CIBIL of an applicant, total turn over of an applicant and so on.
    • With all this Rate of Interest also depends upon Banks and NBFCs as well because some bank or NBFCs start their Rate of Interest at a lower rate and some start their Rate of Interest at a higher rate.
  • Foreclosure for Business loan: there are different policy for foreclosure which varies from bank and NBFCs and we also introduce foreclosure for Business Loan as Early payment of loan or prepayment of Business Loan amount which means to say that, the applicant wants to pay the loan amount before the loan tenure is called as a foreclosure.
    • Basically, banks and NBFCs do have the option to close the loan amount before the loan tenure which can be done after 6 – 12 months only depending on Banks /NBFCs policy with some applicable charges.
  • Processing Fee for a business loan: Every bank & NBFCs have different criteria in processing free for a business loan as well which is taken to process the loan amount and to be given one time only which ranges between 1% to maximum up to 4%.

Business Loan Types by ReferLoan

1. Working Capital Loan by ReferLoan: The working capital loan is the best type of business loan for small business purpose where this loan help to fulfill the shortage of funds to any small business person in their day to days needs.

This loan basically meets the fund's requirements to the business person whey they stay in offseason or failed to unmeet the demands from the customer at the important business season. Working capital loan type is basically suitable for small business traders who get engaged in import or exporters, or small and medium manufacturers, wholesale marketers or any kind of retailers are eligible.

2. Funding for Schools: A school always need to be learning-friendly with different co-curricular activities which improves the learning capability of students and with the learning capabilities, the school itself grow and get some fame as well where more student comes for admission but for these upgradations for co-curricular activities new equipment or up-gradation of school is required which can be easily done by ReferLoan where we provide easy Funding for Schools. Any type of school, small or big is eligible for the loan amount for the expansion of a building or for more equipment or tools.

3. Equipment Loan: it’s a small business or a big one so, advanced equipment is always required for a fast work pace which directly brings up the growth of the company. We do provide an equipment Loan, which can be used to buy new or modern equipment because buying new modern technology-rich equipment cost a lot but will provide benefits in a loan run with a lesser interest rate.

4. Credit Card for Business purpose: there are numbers of credit card option out there but one credit card for business purpose really do provide huge credit limits and with this whenever you spend some money using a business credit card then you will get a chance to earn amazing rewards and points which is really a much better option than a debit card.

Cashback options are also available with a business credit card with protection against card loss or fraud as well but business credit cards required more documentation than other cards and rates can also be higher as compared to other credit cards.

Eligibility Criteria for instant Business Loan according to ReferLoan

The Instant Business Loan eligibility criteria always depend upon many factors and these eligibility criteria can be different according to different Banks and NBFCs as well.

Here are some eligibility criteria for a Business loan, and if you’re are facing any doubt – click on APPLY and fill out the form where ReferLoan Business loan expert will contact you and solve them.

  • The age of the applicant plays a major role while applying business loan for eligibility and the minimum age decided is 25 Years and the maximum age should not be more than 60 Years. These can be varied from different Bank and NBFCs policies.
  • The following are eligible for business loans they are
    • Proprietorship firm
    • Partnership firms
    • Private Limited Companies
    • Self Employed Individuals
    • Professionals who are doing manufacturing or service or any kind of import or export business.
  • The minimum business vintage required is 2 Years (or more) and not less than that.
  • An Income Tax Returns (ITR) is required (Years to be decided by different Banks and NBFCs)
  • The total business turnover includes – minimum business turnover and a minimum annual turnover (the years will be decided by different Banks and NBFCs)
  • 1 Year profit-making company or Firm is eligible or more depending on banks and NBFCs.
  • The minimum CIBIL required for applying for a business loan is 700 but there are few NBFCs who do Business loans with the CIBIL score of 650 as well with a high rate of interest.

Basic Documentations for Business Loan Online from Bank

Here are some basic documents to be required while applying for a Business Loan Online and keep these documents handy. There might be some more documentation required which can be asked by ReferLoan experts, some basic documents are as follows:

  • Proper Address proof of an Applicant: In address proof, the basic documents are: Aadhaar Card, Voter’s ID card, Driving License, rent agreement, utility bill, etc.
    • If the applicant is staying in rent, then the applicant needs to provide a proper “rent agreement”
    • If the applicant is staying in their own residence, then “latest utility Bill”
  • KYC or Know Your Customer Documents: these documents consist of: PAN Card copy, Voter’s ID Card, Driving License. Aadhaar Card, etc.
  • Business Proof which consists of GST Registration, License Trade, Drug License, Registration Under Shop ACT, etc.
  • Income Proof Documents which consist of Balance sheet and Profit and Loss Accounts that need to be audited by an Auditor and also with Auditor’s report.
  • If in case of partnership firm then “partnership Deep” is required
  • If in case of Company then
    • Articles of Association
    • Memorandum of Association
    • Board Resolution
  • Company or Partnership firm identity like PAN Card.
  • If a company has a commercial vehicle, then National and State Permit.

Details Documents of Business Loan

These are the document if BUSINESS IS LESS THAN 1 LAKH

1. For PROPRIETORSHIP CONCERN

Basic Documents of Main Applicant

  • KYC of Proprietor (Passport Size Photo, Aadhar Card & Pan Card Copy)
  • Latest Utility Bill of Residence if Owned (If Rented then Rent Agreement along with Latest Utility Bill)

Co-Applicant KYC

  • KYC of Co-Applicant (Passport Size Photo, Aadhar Card Copy & Pan Card Copy)

Business Vintage Documents

  • Copy of GST Registration
  • 1-Year-Old Business Vintage Proof (Any Registration or ITR 4)
  • Office Address Proof Latest Utility Bill (If Rented Rent Agreement Required with the latest utility bill 

2. PRIVATE LIMITED COMPANY

Basic Documents of Main Applicant

KYC of Company (Pan Card of Company+ MOA & AOA & Certificate of Incorporation of Company)

Co-Applicant KYC

  • KYC of all Directors and Major Shareholder of Company (Passport Size Photo, Aadhar Card & Pan Card Copy)
  • Latest Utility Bill of any of its Director Residence if Owned (If Rented then Rent Agreement along with Latest Utility Bill)

Business Vintage Documents

  • Copy of GST Registration
  • 1-Year-Old Business Vintage Proof (Any Registration)
  • Office Address Proof Latest Utility Bill (If Rented Rent Agreement Required with the latest utility bill)
  • List of Directors and Share Holders on Company Letterhead as on Date

 3. Partnership Firm/LLP

Basic Documents of Main Applicant

  • KYC of Partnership Firm/LLP (PAN Card Copy of Firm/LLP +Partnership Deed/LLP Deed of Firm/LLP)

Co-Applicant KYC

  • KYC of all Directors and Major Shareholder of Company (Passport Size Photo, Aadhar Card & Pan Card Copy)
  • Latest Utility Bill of any of its Director Residence if Owned (If Rented then Rent Agreement along with Latest Utility Bill)

Business Vintage Documents

  • Copy of GST Registration
  • 1-Year-Old Business Vintage Proof (Any Registration)
  • Office Address Proof Latest Utility Bill (If Rented Rent Agreement Required with the latest utility bill)
  • List of Directors and Share Holders on Company Letterhead as on Date

i. Financial Documents

  • Last 3 Years ITR along with Computation of Income of Applicant
  • Last 3 Year ITR along with Computation of Co-Applicant
  • Form 26 As Last 2 years
  • Audit Report + Tax Audit Report last 3 years (if available)
  • Last 12 months GSTR3B returns

ii. BANK STATEMENT

  • All Current and Limit Accounts Banking Last 12 months in PDF Format of Applicant
  • Saving Account bank Statement of Applicant & Co-Applicant Last 12 months in PDF format

iii. OTHER DOCUMENTS

  • All running loan sanction letter with repayments schedule of applicant and Co-Applicant.
  • If EMI is not on time, then SOA (Statement of Account) is also required.
  • 2 Business reference along with Contact
  • Contact detail of the person who will attend PD along with email address.
  • List of Debtors and Creditors on Letterhead of last 2 years and latest. If BL case> 1 Cr.

These are the document if BUSINESS IS FOR 1 LAKH OR ABOVE

4. For PROPRIETORSHIP CONCERN

Basic Documents of Main Applicant

  • KYC of Proprietor (Passport Size Photo, Aadhar Card & Pan Card Copy)
  • Latest Utility Bill of Residence if Owned (If Rented then Rent Agreement along with Latest Utility Bill)

Co-Applicant KYC

  • KYC of Co-Applicant (Passport Size Photo, Aadhar Card Copy & Pan Card Copy)

Business Vintage Documents

  • Copy of GST Registration
  • 1-Year-Old Business Vintage Proof (Any Registration or ITR 4)
  • Office Address Proof Latest Utility Bill (If Rented Rent Agreement Required with the latest utility bill

5. PRIVATE LIMITED COMPANY

Basic Documents of Main Applicant

  • KYC of Company (Pan Card of Company+ MOA & AOA & Certificate of Incorporation of Company)

Co-Applicant KYC

  • KYC of all Directors and Major Shareholder of Company (Passport Size Photo, Aadhar Card & Pan Card Copy)
  • Latest Utility Bill of any of its Director Residence if Owned (If Rented then Rent Agreement along with Latest Utility Bill)

Business Vintage Documents

  • Copy of GST Registration
  • 1-Year-Old Business Vintage Proof (Any Registration)
  • Office Address Proof Latest Utility Bill (If Rented Rent Agreement Required with the latest utility bill)
  • List of Directors and Share Holders on Company Letterhead as on Date

6. Partnership Firm/LLP

Basic Documents of Main Applicant

  • KYC of Partnership Firm/LLP (PAN Card Copy of Firm/LLP +Partnership Deed/LLP Deed of Firm/LLP)

Co-Applicant KYC

  • KYC of all Directors and Major Shareholder of Company (Passport Size Photo, Aadhar Card & Pan Card Copy)
  • Latest Utility Bill of any of its Director Residence if Owned (If Rented then Rent Agreement along with Latest Utility Bill)

Business Vintage Documents

  • Copy of GST Registration
  • 1-Year-Old Business Vintage Proof (Any Registration)
  • Office Address Proof Latest Utility Bill (If Rented Rent Agreement Required with the latest utility bill)
  • List of Directors and Share Holders on Company Letterhead as on Date

i. Financial Documents

  • Last 1 Years ITR along with Computation of Income of Applicant
  • Form 26 As Last 1 years
  • Last 12 months GSTR3B returns

ii. BANK STATEMENT

  • All Current and Limit Accounts Banking Last 06 months in PDF Format of Applicant
  • Saving Account bank Statement of Applicant & Co-Applicant Last 06 months in PDF format

 iii. OTHER DOCUMENTS

  • All running loan sanction letter with repayments schedule of applicant and Co-Applicant.
  • If EMI is not on time, then SOA (Statement of Account) is also required.

Documents Required in Business Loan for Professionals

  • KYC of Applicant & Co-applicant
  • Owner Ship Proof Latest Utility Bill of Residence & Office if owned. If Rented, Rent Agreement of Office and Residence along with latest Utility Bill
  • Copy of ITR along with computation of last 3 years of Applicant and Co-Applicant. (2 Year may also be considered)
  • Last 12 Month Saving Bank Statement in PDF of Applicant & Co-Applicant Last 12 Month Current Bank Statement in PDF of the applicant if any
  • Copy of MBBS/MD degree for Doctors or CA degree for Chartered Accountant, Or Certificate of Practice
  • Visiting Card of Applicant (if any)
  • Copy of GST Registration if any
  • Copy of Form 26AS of last 2 Year
  • All running Loan with Sanction letter if Any

Frequently Asked Questions

2. How to apply for Business Loan in India?

Applying for a Business Loan in India must be a haptic task because lots of documents are required and problems occur while applying for a business loan. ReferLoan makes it easy because ReferLoan has experts who will fully guide you with the documentation and the eligibility and help disburse the loan amount within a few days.

3. What are the benefits to choose ReferLoan for Business Loan?

There are several benefits to choosing ReferLoan for Business Loan and they are as follows

  • Business Loan experts in ReferLoan will support you with documentations
  • Strong ReferLoan Backend team will help logged in the file in the best Bank /NBFCs to provide a better Rate of Interest with the desired loan amount.
  • One place for several fulfillment of finances with single submission of documentations – like after taking a business loan, if a customer needs any kind of business-related insurance like Property Insurance, Stock Insurance, Marine Insurance then can be done by ReferLoan only.
  • Get fast service digitally from over PAN India.
  • Get full support from the ReferLoan team even after the disbursement of the Business loan amount.
  • ZERO Fee by ReferLoan for processing of any finances (Processing fee is applicable by Bank or NBFCs only)

4. What are the charges for Business Loan?

There are different changes that are charged by banks /NBFCs as policy and these charges may be – charges for documentation, Dishonor Cheque charges, Repayment mode swap charges, Duplicate NOC charges, foreclosure charges, Loan cancellation charges, and so on.

These charges will be deducted if any mistakes are done while applying these documents here are some basic mandatory charges taken by banks /NBFCs and they are:

  • Processing Fees charges: the minimum charge can be 1% and goes up to 3.5% of the total loan amount along with GST
  • Foreclosure Charges:
  • Foreclosure Charges: This varies from bank to bank and stays between 2% to 6% of the outstanding business loan amount.
  • Payment delayed charges: this charge starts from 2% and may go above the normal rate of interest if a penalty is overdue and keep on increasing.

 5. What is the minimum CIBIL required for Business Loan?

The minimum CIBIL required from maximum financial Intuitions starts from 700 but, there are few Banks and NBFCs who provide business loans to them who have CIBIL scores between 650 to 700 as well.

6. Can I get Business Loan if my CIBIL score is negative?

No, if you haven’t taken any kind of loan yet and your CIBIL score is -1 then you’re not eligible for a business loan, still you can talk to a ReferLoan expert about the same, maybe you become eligible due to perfect documentation.

7. Apply for a business loan in 3 Steps

Here are the simple steps to apply for a business loan

Step 1: Visit www.referloan.in or download ReferLoan application and click apply.

Step 2: fill out the form while choosing “Business Loan” in the loan section

Step 3: Click Submit

Our ReferLoan expert will contact you as soon as possible with all support.

8. The best place to apply for a Business Loan in Delhi NCR

Visit www.referloan.in applying for a Business Loan in Delhi NCR ReferLoan a leading fintech company tied up with 200+ Banks and NBFCs, check your eligibility, click on apply and get a business loan with full expert support and the least Rate of Interest.

9. Are partial payment options available in Business Loan?

Yes, partial payment is available with a Business loan but with fewer Banks or NBFCs with some processing fees which can be range between 1% to 4% on the part paid amount.

10. What is the maximum Tenure in Business Loan?

The tenure is basically depending on many factors like the age of the applicant, CIBIL, Loan amount, and many more, and the minimum tenure starts from 1 year and goes up to 7 Years.

11. How to get more funds In Business Loan

Here are some keys to keep in mind

  • Keep your CIBIL score healthy enough by the time of applying for a business loan
  • Don’t apply for loans in different banks – Only ReferLoan is the one roof for all financial solutions.
  • Make a strong business revenue model with details of the growth of business in the upcoming years.
  • Keep all your documents ready, and be sure that all the documents are correct and updated.
  • Understand how much funds are required for business and do deep research.
  • Just APPLY with ReferLoan and get what you deserve.