What a business loan looks like
Unsecured limit
Typically up to ₹50 lakh for an established business
Secured options
Loan against property at 9–13%, considerably cheaper
Overdraft
Interest only on the amount drawn, ideal for seasonal gaps
Tax treatment
Interest is a deductible business expense
Eligibility
- Business vintage of at least 2–3 years
- Annual turnover above ₹10 lakh, with filed GST returns
- Clean banking conduct with no cheque bounces in the last 12 months
- Promoter credit score of 700 or above
Documents required
- KYC of proprietors, partners or directors
- Last 12 months bank statements
- Last 2 years ITR with computation and audited financials
- GST returns and business registration proof
- Collateral documents where the facility is secured
Frequently asked questions
KYC of the promoters, twelve months of bank statements, two years of ITRs and financials, GST returns and business registration proof. Secured facilities also require the collateral papers.
Most lenders want two to three years of operations. Newer businesses are usually routed to MUDRA or CGTMSE-backed schemes, or need a co-applicant with independent income.
A term loan suits a one-time asset purchase. An overdraft suits a recurring working capital gap, because interest accrues only on what you draw and only for the days it is outstanding.
Business Loan calculators
Run the numbers before you speak to a lender — it is the difference between negotiating and accepting.
Know your number before you apply
Check eligibility and EMI here first. A formal application leaves a hard enquiry on your credit file — these calculators do not.