Business Loan in Mumbai

In the fast-paced life of Mumbai, there are many budding entrepreneurs, constantly battling with the market force to establish something of their own. For rapidly growing businesses, flexible loan schemes can be a boon, which is why banks now offer a diversified range of loan schemes. There are number of financial institutions, including banks and NBFCs that offer business loans at competitive interest rates.

Eligibility Criteria for Business Loan in Mumbai

The following entities can avail business loans in Mumbai:

• Self-employed Individuals
• Traders, Manufacturers & Retailers
• Sole Proprietors
• Private Limited Companies
• Partnership Firms engaged in the business of Manufacturing, Trading or Services sectors

Basic eligibility criteria to meet before applying for a business loan are—

• Maximum age limit of the applicant should be at least 21 years at the time of applying for the loan and should not exceed 65 years at the time of Loan maturity
• Minimum Turnover depends on lender’s requirements
• Current Business should have minimum 2-year vintage
• Business should be in profit for last 1 year
• Business should have Minimal Annual Income (ITR) of Rs. 1.5 Lakh per annum

Calculate your Monthly EMI on – How is business loan EMI calculated?

Documents Required for Loan Application

o sanction the applied Loan, the lender needs some documents to verify the authenticity and credibility of the loan seeker. Thereby, some required documents are—

• Filled application form
• Valid Identity Proof (Passport/Voter’s ID/Driving License/PAN Card/Aadhar card)
• Valid address Proof (Latest Utility Bill/Ration Card/passport)
• 2 passport-sized Photographs
• Financial documents (Income tax return & profit and Loss & Balance Sheet of last 2 years/Last 6 months’ bank statement & business proof)
• Current year performance and projected turnover on letterhead of the entity

Sole Proprietorship Declaration/Certified Copy of Partnership Deed/Certified Copy of MoA, AoA & Board Resolution

Types of Business Loan

Business loan is both secured and unsecured loan offered at fixed and floating interest rates by the facilitated financial corporation, which gives you access to the needed credits that can be paid back over an agreed time period.

The various business loans that you can avail as a business in Mumbai include:

• Working Capital Loan
• Bill or invoice discounting
• Letter of Credit
• Term Loan (Long-term and Short-term)
• Mudra Loan
• Farm or Construction Equipment Loan
• Loan against Securities
• Merchant Cash Advance
• Machinery Loan
• Cash Credit Facility and Overdraft Facility
• Letter of Credit (LC) Facility and Bank Guarantee

Apply for business loans in other cities of India

FAQs

Ques.1: How is my loan eligibility counted?

Ans: The credit scores of the entity and the last 1 year’s financial report and your ability to repay the loan on and within given time will count as your eligibility to get business loan.

Also Check: eligibility criteria on business financing in India

Ques.2: What is the Minimum and Maximum loan limit offered for business loan?

Ans: You can avail loan ranging from minimum Rs. 10,000 to maximum Rs. 20 crore, depending on your business size and eligibility and upon the terms and condition of respective bank, NBFC or financial corporation.

Ques.3: How long does it take to disburse the business loan?

Ans: It varies from bank to bank, depending on the procedure to verify the eligibility criteria. But mostly your business loan will be disbursed within 5-7 working days.

Ques.4: What is the rate of interest and processing fee on business loan?

Ans: The interest rates may vary from one lender to another and will depend on the various factors related to the borrower. The processing fees would be communicated during the application procedure by the respective authority.