Get Quick and Easy Business Loan in Bangalore
- Shivafinz
- January 17, 2024
- 4:17 pm
Are you looking for hassle-free unsecured business loans in Bangalore? Look no further! Our unsecured loan options in Bangalore are designed to meet your business needs. Whether you need a business loan in Bangalore or an unsecured loan in Bangalore, we’ve got you covered. Explore our flexible and convenient unsecured business loans in Bangalore today.
A business loan in Bangalore is a financial instrument that provides entrepreneurs and businesses with the necessary capital for various purposes, such as expansion, equipment purchase, or operational needs. In the dynamic business environment of Bangalore, often referred to as the ‘Silicon Valley of India,’ these loans cater to diverse industries, ranging from technology startups to traditional enterprises.
Lenders in Bangalore, including banks and NBFCs, offer loans with flexible terms, competitive interest rates, and streamlined application processes, empowering businesses to thrive and contribute to the city’s flourishing economic landscape.
Compare Business Loan Interest Rates from Top Banks/NBFCs
Bank/NBFCs | Interest Rate (p.a) |
HDFC Bank | 6 %- 48% |
ICICI Bank | 6 %- 48% |
Yes Bank | 10.75% onwards |
IndusInd Bank | 11% onwards |
Kotak Mahindra Bank | 11.5% to 24% |
Axis Bank | 11.30% onwards |
IDFC First Bank | 10.75% onwards |
Bajaj Finserv | 12.99% onwards |
Tata Capital | 10.99% onwards |
Indifi | 12 %- 36% |
Lendingkart | 3%- 36% |
NeoGrowth Finance | 6%- 24% |
Source: https://www.moneycontrol.com/personal-finance/loans/business-loan/comparator
What are the Different Types of Business Loans Offered in Bangalore?
- Term Loans: Ideal for long-term business investments, term loans offer a structured repayment plan over a period of 1 to 5 years, supporting ventures like expansion and infrastructure development.
- Working Capital Loans: Tailored for day-to-day operational needs, working capital loans provide short-term financial assistance, ensuring businesses can manage expenses like payroll and inventory smoothly.
- Equipment Financing: Designed for acquiring machinery or equipment, this financing option aligns the loan tenure with the expected lifespan of the assets, facilitating business growth.
- Business Lines of Credit: Offering flexible credit, business lines of credit provide revolving funds, with interest charged only on the utilised amount, allowing businesses to manage cash flow efficiently.
- Invoice Financing: Addressing cash flow gaps, invoice financing advances funds against outstanding invoices, providing businesses with immediate access to working capital tied up in receivables.
- Commercial Real Estate Loans: Geared towards property-related needs, commercial real estate loans assist in purchasing, renovating or refinancing commercial properties, with repayment spanning several years.
- Microloans: Catering to micro-enterprises and startups, microloans offer smaller amounts for short-term needs, providing essential financial support for early-stage businesses.
- Merchant Cash Advances: Tied to future credit card sales, merchant cash advances offer quick funding, with repayment structured as a percentage of daily credit card transactions.
- SBA Loans (Small Business Administration Loans): Government-backed, SBA loans support small businesses with various options, including long-term and short-term loans, fostering growth and stability.
- Franchise Loans: Specifically crafted for aspiring franchise owners, franchise loans assist in launching or expanding franchise operations, with terms structured around the franchise agreement.
- Start-up business Loans: Tailored for new ventures, start-up loans provide initial capital for operational expenses, helping businesses navigate the challenges of the early stages.
- Personal Loans for Business: Individuals utilise personal loans for business purposes, offering flexibility for various needs with varying interest rates and shorter terms compared to traditional business loans.
Why Consider a Business Loan in Bangalore?
Running a business entails various financial requirements, from expanding operations to purchasing new equipment or meeting increased demand. A business loan serves as a financial lifeline, providing the necessary funds to propel your business forward. Whether you are a tech startup or a traditional business, a business loan in Bangalore can be instrumental in achieving your growth aspirations.
Features of Business Loan in Bangalore
Business loans in Bangalore come with distinctive features tailored to meet the diverse needs of entrepreneurs and businesses in this vibrant city:
- Fast Loan Processing: Online application processes enable quick approvals, often providing same-day responses.
- Quick Turnaround & Disbursals: Some lenders disburse funds swiftly, with SME loans processed and approved within days.
- Unsecured Business Loans: Businesses can secure loans without collateral, eliminating the need to pledge assets.
- Loan Tenure Flexibility: Borrowers can choose repayment tenures, ranging from six months to 24 months, accommodating different business revenue cycles.
- No Hidden Costs: Transparent processes with minimal documentation and no hidden charges, providing clarity to borrowers.
- Competitive Interest Rates: Lenders offer competitive interest rates, making the loans financially viable for businesses in Bangalore.
- Extended Loan Tenure: Flexible repayment options, allowing businesses to align loan repayments with their growth plans.
- Support for Startups: Some loans are designed specifically for new entities or startups, offering essential financial support in the early stages.
- Transparent Application Process: Online platforms facilitate a transparent and hassle-free application process, ensuring a smooth experience for borrowers.
- No Prepayment Charges After a Period: Some lenders waive prepayment charges after a certain period, providing flexibility for early loan repayments.
What are the Interest Rates for Business Loan in Bangalore?
Interest rates for business loans in Bangalore vary depending on factors like the type of loan, loan amount and the financial institution. Generally, interest rates can range from 12% to 24% per annum. Specific eligibility criteria, creditworthiness, and the purpose of the loan also influence the interest rates.
Government-backed schemes may offer more favorable rates. It’s advisable for businesses to compare rates among different lenders, considering their financial stability and repayment capabilities, to secure the most competitive and suitable interest rate for their specific requirements in Bangalore’s dynamic business landscape.
Eligibility Criteria of Business Loans in Bangalore
Eligibility criteria for business loans in Bangalore may vary among lenders, but common requirements include:
- Age Requirement: Typically, applicants should be between 21 to 65 years old at the time of loan maturity.
- Citizenship Status: Indian citizenship is usually a prerequisite for availing of business loans.
- Business Vintage: A minimum business vintage of at least two years is often required, demonstrating stability and experience.
- Monthly Salary Required (Annual Turnover): Businesses are generally expected to have a minimum annual turnover, often exceeding Rs. 9 lakhs.
- Income Criteria: Minimum annual income requirements, commonly around Rs. 1,00,000 per year.
- Association with the Current Business: Individuals may need a minimum of 3 years of association with the current business, along with a total business experience of 5 years.
- Enterprise Profitability: Profitable enterprises with a minimum turnover of Rs. 1,000,000 are typically eligible for business loans.
- Minimum Annual Income: A minimum annual income criterion, often around Rs. 2,00,000 per year.
- Additional Parameters: Other factors, including CIBIL score, tax payment record, bank balance, credit utilization ratio, and credit history, play a role in determining eligibility.
Documents Required for Business Loans in Bangalore
The documentation requirements for business loans in Bangalore may vary slightly among lenders, but generally include the following:
KYC Documents:
- PAN card of the individual/business.
- Aadhaar card for identity verification.
- Passport, voter ID, or driver’s license for address proof.
Income Proof:
- Business address proof (rent agreement, utility bills, etc.).
- Bank statements for the last six months.
Financial Documents:
- Last 2 years of Income Tax Returns (ITR).
- Audited financial statements, including income statements, balance sheets, and profit and loss statements for the past two years.
Proof of Business Establishment:
Documents establishing the existence and nature of the business, such as registration certificates, licenses, or any other relevant proof.
Ownership Proof:
- For proprietorship, the proprietor’s PAN card and Aadhaar card.
- For partnerships or companies, relevant partnership deeds, Memorandum of Association (MOA), Articles of Association (AOA), and PAN cards of partners or directors.
- For Private limited MOU, AOA & Pan card of Directors
Other Documents (May Vary):
- Board resolution (for companies).
- CA certified or audited profit and loss account statement.
- Latest ITR of co-applicants (if applicable).
Business Loans in Bengaluru FAQs
Shivafinz stands out in Bangalore due to its seamless loan solutions tailored to meet the diverse needs of businesses. With a swift and secure online application process, competitive financing options, and a commitment to customer service, Shivafinz ensures that your business loan experience is hassle-free and supportive of your company’s growth.
Shivafinz prides itself on a rapid loan process, offering fast and secure business loans in just 7 working days. The online application can be completed in approximately 15 minutes, followed by a streamlined verification process to pre-qualify/pre-approve your loan swiftly.
With Shivafinz, you can secure up to ₹1Cr for your business needs without the need for collateral. This substantial financing option is designed to empower your business’s expansion and operational requirements in Bangalore’s dynamic market.
Absolutely, Shivafinz is there to assist you every step of the way—from applying online to helping you qualify. Their customer support is available 24/7 to ensure that you have all the necessary guidance and information to navigate the loan process successfully.
Safety and privacy are paramount at Shivafinz. Their online application is designed with the latest security measures to protect your personal and financial information, ensuring a secure and trustworthy loan application experience.
Shivafinz simplifies the documentation process for unsecured business loans, catering to self-employed individuals and entrepreneurs who may not have traditional income proof or ITR. The specific documentation requirements will be outlined during the application process, with a focus on convenience and accessibility for all applicants.