Business Loans
Fuel your business growth with unsecured business loans. Get quick access to capital for expansion, working capital, and operational needs without collateral.
₹5L - ₹2Cr
Loan Amount
10% - 18%
Interest Rate
5-10 Days
Processing Time
What are Business Loans?
Business loans are financial products designed to provide entrepreneurs and business owners with the capital they need to start, operate, or expand their businesses. These loans can be used for various purposes including working capital, equipment purchase, inventory management, and business expansion.
At LoanAssure, we specialize in unsecured business loans that don't require collateral, making them accessible to a wide range of businesses. Our streamlined process ensures quick approvals and disbursements, helping you seize business opportunities without delay.
Why Choose Business Loans from LoanAssure?
Comprehensive advantages that make our business loan offerings the preferred choice for entrepreneurs
Unsecured Financing
Get loans up to ₹2 crores without pledging any collateral or security. Your business assets remain free and unencumbered.
Quick Disbursement
Fast-track approval process with disbursement in 5-10 working days. Get funds when you need them most for business opportunities.
Competitive Interest Rates
Attractive interest rates starting from 10% per annum with transparent pricing and no hidden charges.
Minimal Documentation
Simplified paperwork with digital processing options. We help streamline the documentation process for faster approvals.
Flexible Tenure
Choose repayment tenure from 1 to 5 years based on your business cash flow and financial planning requirements.
Expert Support
Dedicated relationship managers provide personalized guidance throughout the loan journey and beyond.
Types of Business Loans Available
Diverse financing options to meet various business requirements and growth stages
Term Loans
Fixed-term business financing
Long-term financing for business expansion, equipment purchase, or major capital investments with fixed repayment schedule.
Key Features:
- Loan Amount: ₹5 lakhs - ₹2 crores
- Interest Rate: 10% - 16% p.a.
- Tenure: 1-5 years
- Fixed monthly EMIs
Best Used For:
- • Business expansion and growth
- • Equipment and machinery purchase
- • Infrastructure development
- • Technology upgrades
Working Capital Loans
Short-term operational financing
Short-term financing to manage day-to-day operations, inventory, and cash flow requirements of your business.
Key Features:
- Loan Amount: ₹2 lakhs - ₹1 crore
- Interest Rate: 12% - 18% p.a.
- Tenure: 6 months - 2 years
- Flexible repayment options
Best Used For:
- • Inventory management
- • Supplier payments
- • Seasonal cash flow gaps
- • Day-to-day operations
Equipment Financing
Asset-specific funding
Specialized financing for purchasing business equipment, machinery, and technology to enhance productivity and efficiency.
Key Features:
- Loan Amount: ₹5 lakhs - ₹2 crores
- Interest Rate: 10% - 15% p.a.
- Tenure: 2-5 years
- Equipment as security
Best Used For:
- • Manufacturing equipment
- • IT infrastructure
- • Medical equipment
- • Commercial vehicles
Invoice Financing
Receivables-based funding
Convert your outstanding invoices into immediate cash flow to maintain business operations without waiting for customer payments.
Key Features:
- Funding: Up to 80% of invoice value
- Interest Rate: 12% - 20% p.a.
- Tenure: 30-180 days
- Quick processing
Best Used For:
- • Immediate cash flow needs
- • Bridge financing
- • Supplier payments
- • Operational expenses
Business Loan Eligibility Criteria
Check if your business qualifies for our business loan offerings
Applicant Eligibility
- Age: 21-65 years for individual applicants
- Citizenship: Indian citizen or NRI
- Experience: Minimum 2-3 years business experience
- Credit Score: Minimum 650 (preferred 700+)
- Income: Stable business income and cash flow
Business Eligibility
- Business Vintage: Minimum 2-3 years of operations
- Annual Turnover: Minimum ₹25 lakhs per annum
- Profitability: Business should be profitable for last 2 years
- Banking: Minimum 12 months banking relationship
- Registration: Proper business registration and licenses
Eligible Business Types
Retail Businesses
Shops, stores, outlets
Manufacturing
Production units, factories
Service Providers
Consultancy, agencies
IT Companies
Software, technology
Trading
Import, export, wholesale
Food & Beverage
Restaurants, catering
Healthcare
Clinics, medical services
Education
Schools, training centers
Documentation Required for Business Loans
Comprehensive list of documents needed for smooth business loan processing
Personal Documents
- PAN Card of applicant/partners/directors
- Aadhaar Card or Passport
- Passport size photographs
- Residence proof (utility bills/rent agreement)
- Educational qualifications
- Experience certificates (if applicable)
Business Documents
- Business registration certificate
- Partnership deed/MOA & AOA
- GST registration certificate
- Trade license/Professional license
- Shop establishment license
- Business PAN card
- Office address proof
Financial Documents
- Bank statements (12-18 months)
- ITR for last 3 years
- Audited financial statements
- GST returns (last 12 months)
- Sales invoices and contracts
- Purchase orders and agreements
- Cash flow projections
Additional Documents (If Applicable)
- Existing loan statements and NOCs
- Property documents (for secured loans)
- Insurance policies
- Franchise agreements
- Rent agreements for business premises
- Industry-specific licenses
Document requirements may vary based on loan type, amount, and lender policies. Our experts will provide a personalized checklist.
Business Loan Application Process
Streamlined process to get your business loan approved and disbursed quickly
Initial Consultation
Free consultation to understand your business needs and loan requirements
Eligibility Assessment
Evaluate your business profile and determine loan eligibility
Document Collection
Gather and verify all required documents with our guidance
Lender Selection
Compare offers from multiple lenders and choose the best option
Application Submission
Submit complete application to the selected lender
Approval & Disbursement
Loan approval and fund disbursement to your account
Processing Timeline & Requirements
5-10 Days
Total Processing Time
2-3 Days
Document Verification
1-2 Days
Disbursement
Tips for Faster Processing:
- Keep all documents ready and updated
- Maintain good credit score
- Ensure business financials are in order
- Respond promptly to lender queries
Interest Rates & Charges
Transparent pricing with competitive rates across different business loan products
| Loan Type | Interest Rate (p.a.) | Processing Fee | Prepayment Charges | Tenure |
|---|---|---|---|---|
| Term Loans | 10% - 16% | 1% - 3% | 2-4% in first 2 years | 1-5 years |
| Working Capital | 12% - 18% | 1% - 2% | Nil after 6 months | 6 months - 2 years |
| Equipment Financing | 10% - 15% | 1% - 2.5% | 2% in first year | 2-5 years |
| Invoice Financing | 12% - 20% | 0.5% - 1.5% | Nil | 30-180 days |
| Unsecured Business Loans | 14% - 22% | 2% - 4% | 3-5% in first 2 years | 1-3 years |
Factors Affecting Interest Rates
- Credit Score: Higher score = Lower rates
- Business Vintage: Older businesses get better rates
- Annual Turnover: Higher turnover = Better rates
- Collateral: Secured loans have lower rates
- Banking Relationship: Existing customers get benefits
- Industry Type: Low-risk industries get better rates
Interest rates are subject to change based on RBI guidelines, market conditions, and individual eligibility. Final rates will be determined by the lender after assessment.
Frequently Asked Questions
Common questions about business loans answered by our experts
Secured Business Loans:
- Require collateral (property, equipment, or other assets)
- Lower interest rates (8% - 14% p.a.)
- Higher loan amounts (up to ₹50 crores)
- Longer repayment tenure (up to 20 years)
- Easier approval for businesses with assets
Unsecured Business Loans:
- No collateral required
- Higher interest rates (10% - 22% p.a.)
- Lower loan amounts (up to ₹2 crores)
- Shorter repayment tenure (1-5 years)
- Based on business cash flow and credit score
Yes, you can get business loans with a low credit score through various options:
- Secured Loans: Offer collateral to reduce lender risk
- Co-applicant: Add a co-applicant with good credit score
- Alternative Lenders: NBFCs and fintech companies with flexible criteria
- Smaller Amounts: Start with smaller loan amounts to build credit
- Strong Business Financials: Demonstrate strong cash flow and profitability
Credit Score Ranges:
- 750+: Best rates and terms
- 650-750: Good rates with standard terms
- 600-650: Higher rates, may need additional security
- Below 600: Secured loans or alternative lenders
Loan amount is typically calculated as a multiple of your annual turnover:
| Annual Turnover | Typical Loan Amount | Loan-to-Turnover Ratio |
|---|---|---|
| ₹25 lakhs - ₹1 crore | ₹5 - 25 lakhs | 20-25% of turnover |
| ₹1 - 5 crores | ₹25 lakhs - 1 crore | 25-30% of turnover |
| ₹5+ crores | ₹1 crore+ | 30-40% of turnover |
Other factors affecting loan amount:
- Profit margins and cash flow
- Existing debt obligations
- Credit score and history
- Business vintage and stability
- Industry type and risk profile
Business loans offer several tax benefits under the Income Tax Act:
- Interest Deduction: Interest paid on business loans is fully deductible as business expense
- Processing Fee: One-time processing fees can be claimed as deduction
- Equipment Loans: Depreciation benefits on assets purchased through loans
- Working Capital: Interest on working capital loans is deductible
Important Notes:
- Principal repayment is not tax deductible
- Loan must be used for business purposes only
- Maintain proper documentation and receipts
- Consult with a tax advisor for specific cases
Tax benefits can significantly reduce the effective cost of borrowing for businesses.
Prepayment policies vary by lender and loan type:
Prepayment Charges:
- First Year: 2-5% of outstanding principal
- Second Year: 1-3% of outstanding principal
- Third Year Onwards: Usually no charges
No Prepayment Penalty:
- Floating rate loans (most cases)
- Working capital loans
- Invoice financing
- Some MSME loan schemes
Benefits of Prepayment:
- Reduces total interest burden
- Improves credit score
- Frees up borrowing capacity
- Reduces financial stress
Always check prepayment terms before taking a loan and negotiate if possible.
Defaulting on a business loan has serious consequences:
Immediate Impact:
- Late payment charges and penalty interest
- Negative impact on credit score
- Account marked as irregular/NPA
- Increased interest rates on future loans
Progressive Actions by Lender:
- 30 days: Reminder calls and notices
- 60 days: Formal demand notice
- 90 days: Account becomes NPA
- 120+ days: Legal action and asset recovery
What to Do if Facing Difficulties:
- Contact lender immediately
- Request loan restructuring or moratorium
- Negotiate revised payment terms
- Consider one-time settlement (OTS)
- Seek professional financial advice
Business Loan EMI Calculator
Calculate your monthly EMI and plan your business loan repayment
Business Loan Success Stories
Real stories from entrepreneurs who achieved their business goals with our support
Rajesh Sharma
Manufacturing Business"LoanAssure helped me get a ₹50 lakh business loan to expand my manufacturing unit. The process was smooth and the interest rate was the best in the market."
Loan Amount
Interest Rate
Priya Kumari
IT Services"As a woman entrepreneur, I was worried about loan approval. LoanAssure not only got my loan approved but also at a competitive rate for my IT startup."
Loan Amount
Interest Rate
Amit Jain
Retail Chain"Needed working capital urgently for inventory. LoanAssure arranged the funds in just 7 days, helping me avoid stock-out during peak season."
Loan Amount
Processing
Ready to Accelerate Your Business Growth?
Join thousands of successful entrepreneurs who have achieved their business goals with our business loan solutions. Get expert guidance, competitive rates, and quick approvals to fuel your business success.