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Apoorv Chaudhary
by on May 22, 2021
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The cost of running a business is sometimes higher than what we expect. In those times, if you need additional funds, there is no better option than business Micro loans. These loans are quickly processed, do not require collateral, and have a flexible tenure.  

In this short post, we will explore some business loans that could help you out. The lenders are reliable, have trust in the market. After reading about them, you can choose one of them to get the loan.  

IDFC First Bank Business loan 

IDFC First bank is one of the primary banks in India offering a business loan. It offers Micro loanunsecured business loan and many others.  

  • IDFC First Bank offers a loan amount from Rs 3 lakhs to Rs 75 lakhs.  
  • The IDFC Business loan interest rate is 19% onwards  P.A 
  • The loan tenure is from 1 year to 5 years.  
  • The processing fee is up to 3.5% of the loan amount.  
  • The pre-closure is allowed after 6 EMIs at 4% or 5% charge of the outstanding loan amount.  
  • It does not require collateral.  

Lendingkart Business loan 

Lendingkart business loan especially focused on MSME and SME businesses. The Micro loan is aimed at providing easy access to finance to entrepreneurs.  

  • Lendingkart offers a loan amount from Rs 2 lakhs to 2 crores for eligible SMEs.  
  • The business loan rate of interest is from 15% to 27% per annum.  
  • The loan repayment tenure is up to 3 years. 
  • The pre-payment charge is NIL allowed after 6 EMIs.  
  • The penal interest rate is 2% monthly.  
  • The processing charge is between 1% to 2%, a minimum of Rs 1000. 
  • It does not need collateral.  

Bajaj Finserv Business loan 

Bajaj Finserv Business loan is focused on all-around requirements. Whether you need to buy new machinery equipment or need a customized Micro Business loan, it Is available.  

  • Bajaj Finserv offers business loans amount up to Rs 45 lakhs.  
  • The business loan interest rate starts at 18% per annum.  
  • The loan tenure is up to 1 year to 4 years.  
  • The processing charge is up to 3% of the loan amount.  
  • The pre-payment charge is allowed after 6 EMIs been paid. 
  • The prepayment charge is 4% of the principal loan amount. 
  • The penal interest is 2% monthly.  

Now, we have explored the basic details. It is essential to know to figure out which one you would prefer. Let’s move on to the eligibility criteria.  

IDFC First Bank Business loan eligibility criteria 

  • The applicant age should be between 23 years and 68 years/  
  • Self-employed individuals, partnership firms, or sole proprietors are eligible to apply for its business loan 
  • The business should be running for a minimum of 3 years.  

Eligibility criteria for Lendingkart Business loan 

  • Any partnership firm, private ltd company, LLP is eligible to apply.  
  • The age should be between 21 years and 65 years.  
  • The business should be established and running for at least 3 years.  
  • The business turnover should be a minimum of Rs 10 lakhs. 
  • The applicant should have a minimum of 2 years of work experience.  
  • The applicant should have an ideal CIBIL score.  

Bajaj Finserv Business loan eligibility criteria 

  • Self-employed professionals, sole proprietorship first, private ltd companies, trusts, and societies are eligible to apply for this Micro loan 
  • The applicant's age should be from 25 years to 55 years.  
  • The applicant should have at least 2 years of work experience.  
  • The applicant venture should be running for more than 3 years.  
  • The applicant should have filed ITR for at least 1 year. 
  • The applicant should have a good credit score 

Required documents for these lenders business loan  

The documents mentioned are the basic ones. Every lender will need them when you apply for their business loan. They may or may not ask for additional documents.  

  • Loan application form 
  • Passport size photographs 
  • Identity proof – Aadhar card, PAN card, Driving license, Voter ID card 
  • Address proof - The electricity bill, utility bill, telephone, bill,   
  • Business existence proof 
  • Business ownership documents 
  • Bank statement  
  • Income statement 
  • ITRs 
  • Memorandum of Association 
  • List of shareholders and directors
  • Documents for any other documents  
  • Again, a lender might require additional documents.  

Comparing these lenders business loan with other lenders 

Here is a list of few other lenders Business loans with interest rates and processing fees.  

Bank 

Business Loan Interest Rates 

Processing Fee 

SBI Business Loan 

11.20% 

From 2% to 3% 

HDFC Bank Business Loan 

15.65% 

from 0.99% to 2.50% 

ICICI Bank Business Loan 

16.49% 

from 0.99%, Up to 2% 

RBL Bank Business Loan 

16.25% 

1.80-2.20%  

Tata Capital Business Loan 

21.00% 

From 1.50% to 2.50% 

How to apply?  

So, we have three promising lenders, IDFC First bank, Lendingkart, and Bajaj Finserv business loan. To apply, you can download their respective app from the Google play store or visit their website. The instruction are simple, clear, and quick to follow.  

Conclusion 

These lenders offer a reliable Micro loan, which you can, utilized to run or start a business. However, as a precaution, you should read the loan documents before you finally sign on them.  

Posted in: Finance, Loan
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