Banks That Offer Small Business Startup Loans – Startup culture has taken over the world. More and more people are showing interest in opening their own business. The recent growth in the startup world is huge and it’s not going to stop anytime soon. However, starting a startup requires one of the most important things, which is investment or funding. Business cannot exist without finance.
People who start their own business are looking for financing because they need funds to grow their companies. Businesses make money by taking out cash loans. So, there are banks willing to lend to small businesses. In this article, we will talk about some of the banks from which you can take a loan, as well as their eligibility criteria and required documents. So, let’s start.
Banks That Offer Small Business Startup Loans
Getting loans from banks is always a good idea for a startup with a vision for the future. Debt is considered a better source of capital for a profitable business than equity because you get better leverage. You can enjoy the excess profit from the interest you pay on the loan. To start with a startup, you need to know very well how to keep the interest rate as low as possible with maximum profit.
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Loans will also help you expand your business. On the other hand, it acts as a catalyst that motivates you to be more productive. You can take advantage of getting a startup loan
Many banks offer small business loans to help entrepreneurs realize their business dreams. However, the most popular banks that offer loans and the most preferred ones are listed below:
HDFC Bank Business Loan Startups can expand their operations by getting additional financial support through HDFC Bank. Every entrepreneur wants minimum paperwork, flexible tenure and low interest rates that you can get from HDFC. Banks provide loans to cover the corresponding funds. Any type of business needs a loan size and tenure. The business loan amount is up to INR 40 lakh and up to INR 50 lakh in selected areas. The loan term is from 12 to 48 months. Eligibility Entrepreneurs, proprietors, private limited companies and partnership firms engaged in manufacturing, trading or services. A minimum business turnover of Rs. 4 million. A person who has at least 3 years of experience in the field with at least 5 years of experience. He has been engaged in profitable business for the last 2 years. The business must have a minimum annual revenue (MTR). At least Rs 1.5 lakh per annum. The applicant must be at least 21 years of age at the time of applying for the loan and must not be more than 65 years of age at the time of repayment of the loan. Documents If you are interested in a business development loan, you can apply. Using the following documents. Mandatory Documents [Attested Copy of Single Proposal Declaration or Partnership Working Document, Attested Copy of Memorandum and Articles of Association (Attested by Director) and Board Proposal (Original)] Copy of any of the following documents as proof of identity: Aadhaar Card, Passport, Voter ID Card CardPAN Driving License 3. Address Copy of the following documents as proof: Passport Aadhaar Card Voter ID Card Driving License 4. Income, Balance Sheet and Profit & Loss Accounts for the last 2 years after CA Certification / Audit. 5. Proof of Continuity (ITR/Trade License/Incorporation/Sales Tax Certificate). 6. Bank account statement for the previous 6 months. Interest rates and fees range from 11.90% to 21.35%. Loan processing fee – up to 2.50% of the loan amount. Advantages You do not need to provide any collateral or security. Take a loan from HDFC. The application process is very simple. Minimum volume of documents. This bank operates a “threshold” service. An additional feature is access to an overdraft facility. You only pay interest on the loan amount used with the credit protection plan. You can get a loan protection plan at a nominal cost. Citi Bank Business Loan Citi Bank Business Loan Citi Bank offers loans called CitiBusiness, which provide business loans that enable startups to effectively manage working capital. A startup can also opt for various MSME credit products that include working capital loans, short-term loans, long-term loans, overdrafts and export-import financing options. Loan Amount and Term The minimum business loan amount is INR 10 lakh and the maximum amount is INR 15 lakh. The loan term is from 12 to 120 months. Eligible loans can also be provided to the self-employed, owners and individuals who choose to partner with the business. People who have been in this business for 3 years. A person must be 21 years of age or older to apply for a loan. The maximum age of a person who can apply for a loan is 65 years. Identity Proof Documents Copy of PAN Card is given below: Aadhaar Card, Passport, Voter ID Card, Driving License, PAN Card 3. Copy of any address proof documents mentioned below: Aadhaar Card, Passport, Voter ID Card, Driving License 4. Statement from a bank account for the last 6 months. 5. Latest ITR including Income Statement, Balance Sheet and Profit and Loss Statement for last 2 years audited/verified by CA. 6. Proof of Continuity (Trade License / Sales Tax Certificate) Interest Rates and Charges Interest charges are determined by the bank. The processing fee is 2% of the loan, plus taxes. Advantages You can get a loan in just 48 hours. A guarantor is not required to obtain a loan. Interest rates on business loans are low. Citibank offers a 4% prepayment. Payment and documentation are quick and easy. ICICI Bank Business Loan ICICI Bank Business Loan ICICI also offers startup loans. They introduced “iStartup 2.0”, which offers a wide range of business solutions that help customers beyond their banking and business needs, saving you time and energy and allowing you to focus on the core aspects of your business. Allowing entrepreneurs to use loans Created for the day. If you choose to use iStartup 2.0, which includes banking services, you are offered many other services that play an important role in the development of your business, such as a debit card that has limits and much more. Loan Amount and Duration The minimum loan amount is INR 1 lakh and the maximum loan amount is INR 40 lakh. The term of the loan is from 12 months to 36 months. The loan can be granted to self-employed persons and the age limit is 28 years. For doctors, the age limit is 25 years. For non-professionals in business, the minimum turnover should be INR 40 lakhs and for professionals – INR 15 lakhs. The minimum income should be INR 2 lakhs for self-employed and 1 lakh for non-entrepreneurs. – professionals. Must have at least 1 year relationship with ICICI Bank with current or savings account. Copy of PAN card document for proof of identity. 2. Copy of any of the following documents as proof of address: Aadhaar Card, Passport, Voter ID Card, Driving Licence. 3. Partnership business requires a document or certificate of partnership, as well as a certificate of establishment of an individual entrepreneur. 4. Audited financial statements for the last 3 years including balance sheet, profit and loss statement, tax audit reports 5. Bank statement Interest rate and charges for the last 6 months Interest rate is 15.50%. Processing fees start at 0.99% and go up to 2%. Benefits do not require collateral or security. The bank offers an overdraft. Banks have many branches in India. Applying for a loan is quick and easy. If you choose iStartup 2.0, you will receive the best solutions for healthcare, IT and services, real estate and construction. In short, it could turn out to be one small step for a giant leap. Axis Bank Business Loan Axis Bank Business Loan Axis Bank is one of the banks that can be the right choice for you. It provides the necessary funds in the form of loans for your business needs. Small and micro businesses can easily apply for a loan from Axis Bank. Loan amount and loan tenure up to INR 50 lakhs. Duration – 36 months. The qualifying business must be at least 5 years old and in operation. Must have a minimum annual turnover. 30 lakhs to 10 crores. Individuals must be between 21 and 65 years of age. A person must be an Indian to apply for the loan. Document Copy of any identity proof document mentioned below: Aadhaar Card Passport Voter ID Card Driving License PAN Card 2. Copy of any address proof document mentioned below: Passport Telephone Bill Electricity Bill Bank Statement 3. Income Statement for last 2 years 4. Bank statement for the last 6 months 5. Creation of proof of trade. 6. Financial statement for the last 2 years including profit and loss statement and balance sheet. Interest Rate and Fees The interest rate ranges from 14.25% to 18.50%. The processing fee is 2% of the requested loan amount. Benefits do not require collateral or security. Minimum amount of documents. The loan application process is simple. The repayment period is flexible. conclusion
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