How to Get Instant Business Loans Online Without Any Hassle

Suhana, a hardworking 32-year-old entrepreneur, ran a small boutique in Mumbai. Just before Diwali, she needed ₹8,00,000 to buy new stock for her designs. But getting a bank loan would take time, and she had only 15 days!

A friend gave her a game-changing idea – why not try an online business loan? Suhana quickly applied on a trusted NBFC's website. With a solid 720 credit score, 6 months of bank statements, and GST returns, her loan got approved in just 24 hours at a 14% interest rate.

And just like magic, ₹8,00,000 landed in her account within 48 hours! She placed her stock order on time, and Diwali sales shot up by 40%. With a comfortable ₹18,500 EMI per month, she repaid the loan stress-free in 18 months.

For Suhana, this online loan was a lifesaver – quick, easy, and perfectly timed. Today, her boutique is flourishing, and she happily spreads the word to other entrepreneurs: "When opportunity knocks, open the door fast!"

In this blog, we will explore some amazing tricks to get a business loan without any hassle.

What Is A Business Loan?

A business loan is a financial tool that helps businesses get funds for expansion, working capital needs, or purchasing new equipment. In India, banks and non-banking financial companies (NBFCs) offer different types of business loans tailored to specific business requirements.

Types of Business Loans

1. Term Loan: A fixed loan amount given for a specific period (12 to 60 months). It is used for business expansion, purchasing equipment, or starting a new project.
   
    
2. Working Capital Loan: Helps manage daily business operations like buying inventory or covering short-term cash flow gaps.
   
   
3. Overdraft Facility: Allows businesses to withdraw more than the available balance in their account, with interest charged only on the amount used.
   
   
4. Equipment Financing: A loan for purchasing new machinery or equipment, where the purchased asset acts as collateral.
   
   
5. Government Schemes: The Indian government offers special loan schemes like Mudra Yojana, Stand-Up India, and CGTMSE for MSMEs at lower interest rates.

Comparative Overview of Business Loan Types in India

For a swift and hassle-free online business loan, start by comparing lenders with fast approvals and minimal paperwork. Ensure you meet the eligibility criteria, have all necessary documents ready, fill out the application form, and let the lender handle the rest – approval and disbursal will follow in no time!

1. Compare Lenders and Loan Types

Getting a business loan quickly and without hassle has become easier in today’s digital age. However, choosing the right lender and loan type is crucial for successfully securing a loan.

• Research different lenders: Explore online platforms like IIFL Finance, Bajaj Finance, Poonawalla Fincorp, Shriram Finance, and Axis Bank.
  
  
• Consider loan types: Look at options like term loans, flexi-term loans, and unsecured loans.
  
  
• Check for collateral-free options: Some lenders offer business loans without collateral.
  
  
• Compare interest rates and repayment terms: Evaluate interest rates, repayment tenures, and other fees.

Below is a table showing examples of business loan options from major lenders:

Note: The above information is general and may change over time. For accurate details, contact the lenders directly.

Read More – The Fastest Way to Get a Business Loan Approved
 

Lender Analysis:

• IIFL Finance: Offers term loans from ₹5,00,000 to ₹50,00,000 at 12%-18% interest. Repayment tenure is 12-60 months. No collateral is required. Processing fees are around 2%.
   
• Bajaj Finance: Known for flexi term loans, offering ₹10,00,000 to ₹45,00,000 at 13%-16% interest. Repayment tenure is 12-48 months. No collateral is needed. Processing fees are about 1.5%.
   
• Poonawalla Fincorp: Provides unsecured loans from ₹3,00,000 to ₹30,00,000 at 14%-20% interest. Repayment tenure is 12-36 months. Processing fees are around 2%.
  
  
• Shriram Finance: Offers term loans between ₹5,00,000 and ₹25,00,000 with interest rates of 15%-22%. Repayment tenure is 12-48 months. Collateral is required. Processing fees are about 2.5%.
  
  
• Axis Bank: Specialises in unsecured loans from ₹10,00,000 to ₹50,00,000 at 11%-17% interest. Repayment tenure is 12-60 months. Processing fees are around 1%.

Select the best loan based on your business needs and financial situation. Consider factors like interest rate, repayment tenure, processing fees, and collateral requirements.

By carefully following this process, you can secure a business loan quickly and without any hassle.

2. Check Eligibility and Required Documents

To get an online business loan quickly and without hassle, it is important to understand the eligibility criteria and gather the required documents.

Know the Eligibility Criteria

Each lender has different eligibility requirements, but the common ones include:

• Business Type: Sole proprietorship, partnership firm, private limited company, or Limited Liability Partnership (LLP).
  
  
• Business Age: Your business should be active for at least 2-3 years.
  
  
• Annual Turnover: Some lenders require a minimum turnover of ₹40,00,000.
  
  
• Credit Score: A good credit score (650 or above) increases the chances of loan approval.
  
  
• Age & Experience: The applicant should be between 21 and 65 years old, with at least 3 years of business experience.

Gather Required Documents

To get a loan, you will need the following documents:

• Identity Proof: PAN card, Aadhaar card, Passport, or Voter ID.
• Address Proof: Aadhaar card, Passport, Electricity bill, or Water bill.
• Business Registration Documents: GST registration, Shop Act license, or Udyam Aadhaar.
• Financial Documents: Audited balance sheet and profit & loss statement for the last 2 years.
• Bank Statement: Bank statements for the last 6 months.
• GST Returns: GST return filings for the last 6 months.

Example:

Saquib is a 30-year-old entrepreneur from Bengaluru. He runs a sole proprietorship that has been operational for 3 years, generating an annual turnover of ₹45,00,000. With a credit score of 720, he seeks a ₹10,00,000 business loan to expand his operations. To apply, Saquib gathers his PAN card, Aadhaar card, GST registration, 6 months' bank statements, and 2 years' audited financials.

Below is a summary of eligibility criteria and required documents from top lenders: