Business Loan in India
A Business Loan In India lets the business owner to get funds from the banks, financial bodies, and NBFCs to run a new business or enlarge an existing business. The interest rate charged by the bank will depend on the borrowed amount offered to the borrower and the repayment schedule.
The Indian government has taken various initiatives to encourage the business loan start – up & small-scale industries and also provide financial support. Moreover, government of India have initiate various loan schemes for startup of business where the applicant does not need to pledge collateral or security.
Loan schemes by Indian government
- Stand-up India scheme
- MUDRA loan under PMMY
- Bank credit facilitation scheme
- CGTMSE Scheme
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Eligibility criteria for business loan
- The eligibility criteria for a business loan depends on many factors such as age limit of the borrower, repayment history, annual income, business turnover, etc.
- The age limit of the individual should be between 22 years to 60 years of age.
- The continuation of business should be a minimum of 3 years.
- The borrower with no default in any existing loan with any financial institution.
- The organization should avail a patron guarantee provided by the trademark and patent office.