Best Banks For Small Business Startup Loans

By | January 30, 2023
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Best Banks For Small Business Startup Loans – The startup culture has conquered the world. More and more people are showing interest in starting a business. The recent growth that the startup world has seen is tremendous and it’s not going to stop anytime soon. However, starting a startup means one of the most important things is needed and that is investment or funds. Without finance, a business cannot take place.

People who have started their business are looking for finance because they need funds to grow their business. Businesses make money by borrowing cash. So there are banks willing to lend to small businesses. In this article, we talk about some of the banks you can borrow from and their eligibility criteria and required documents. So let’s start.

Best Banks For Small Business Startup Loans

Best Banks For Small Business Startup Loans

Getting loans from banks for a startup with a futuristic approach is always a good idea. Loans are considered a better source of capital for a profitable business than equity if you get better leverage. You can enjoy an excess of returns over the interest you pay on the loans. In order to start a startup, you need to be very conscious of how to keep your interest rate as low as possible while maximizing benefit.

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Loans improve the scale of your business by also helping you to expand. On the other hand, it also acts as a catalyst to motivate you to be more productive. You can use these advantages when obtaining startup loans:

Many banks offer loans to small businesses so that entrepreneurs can fulfill their dream of becoming an entrepreneur. However, the most popular banks that offer loans and the most popular are listed below:

HDFC Bank Business Loan Startups can expand their business operations by receiving additional financial support from HDFC Bank. Every entrepreneur wants as few documents as possible, flexible terms and low interest rates, which you can get from HDFC. The bank offers loans to fulfill related financing. all kinds of business needs Loan Amount and TermThe business loan amount is up to INR 40 lakhs and even INR 50 lakhs in selected locations. The term of the loan is 12 months to 48 months. Eligibility Entrepreneurs, Owners, Private Ltd. Co. and partner companies engaged in manufacturing, trading or services. 40 lakhs Individuals who have worked for at least 3 years and have at least 5 years of professional experience in the field Businesses that have made profits in the past 2 years A business must have a minimum annual income (ITR) of at least Rs.1.5 lakhs per Year. The applicant must be at least 21 years old when applying for the loan and must not be older than 65 when the loan expires. it with the following papers. Mandatory Documents [Only Prop. Declaration or certified copy of Partnership Deed, certified copy of Certificate of Incorporation and Articles of Association (certified by Director) and Board Resolution (original)]A copy of one of the following documents as proof of identity: Aadhaar CardPassportVoter’s ID CardPAN Card driving license 3 A copy of one of the following Documents as Proof of Address: Aadhaar CardPassportVoter’s ID Card Driving License 4. Latest ITR along with Income Calculation, Balance Sheet and Profit and Loss Account for the last 2 years after being certified/audited by the CA. 5. Proof of continuation (ITR / trade license / branch office / sales tax certificate). 6. Bank statement for the last 6 months. Interest Rate and Charges The interest rate range for Rack is from 11.90% to 21.35%. Loan processing fees – up to 2.50% of the loan amount. Benefits You do not need to provide any guarantee or security to take out a loan from HDFC. The application process is very simple. Less documentation effort. Doorstep service is available at this bank. An additional feature is access to the overdraft facility. You only pay interest on the drawn loan amount and a credit protection plan. You can have the credit protection plan at a nominal price. Citi Bank Business LoansCiti Bank Business Loans Citi Bank offers loans referred to as CitiBusiness, which offer business loans that help startups manage working capital efficiently. A startup can also opt for diversified MSME lending products that include working capital loans, short-term loans, long-term loans, overdrafts, as well as export-import financing options. The maximum amount is INR 15 lakhs. The term of the loan is 12 months to 120 months. Eligibility Loans can be given to the self employed, homeowners and even those who choose to partner with a business. People who have been in this business for 3 years. You must be at least 21 years old to apply for a loan. The maximum age of a person who can apply for a loan is 65.DocumentationPan CardA copy of any of the below proof of identity documents:Aadhar CardPassportVoter ID Ry LicensePan Card 3. A copy of any of the below proof of address:Aadhar CardPassportVoter ID Drivers License 4. Bank statement for the last 6 months. 5. Latest ITR along with Income Calculation, Balance Sheet and Profit and Loss Account for the last 2 years after being certified/audited by the CA. 6. Proof of inventory (business license/sales tax certificate) Interest rate and fees Interest fees are at the discretion of the bank. The processing fee is 2% of the loan and applicable taxes also apply. Benefits You get a loan in just 48 hours. No collateral is required to receive your loan. The interest rate of the business loan is low. CitiBank charges a 4% prepayment fee. Livestock processing and documentation is quick and easy. ICICI Bank Business LoansICICI Bank Business Loan ICICI also offers startup loans. They have developed “iStartup 2.0” which offers a wide range of business solutions that help customers go beyond their banking and business needs, saving time and energy and allowing you to focus on the essential business aspects. This program was created to provide loans to entrepreneurs. If you decide to use iStartup 2.0, which includes banking services, you will be offered many other services that play an essential role in the development of your business, such as a debit card with limits loan amount and term, the minimum amount for a loan is INR 1 lakh and the maximum amount is INR 40 lakhs. The loan term is from 12 months to 36 months. Eligibility Loans are eligible for self-employed and the age criterion is 28 years. For physicians, the age criterion is 25 years. The minimum turnover of the business for a layman should be INR 40 lakhs and for professionals INR 15 lakhs nst should be INR 2 lakhs for self employed and INR 1 lakhs for non-professionals. One must have a minimum 1 year relationship with ICICI Bank by having a checking or savings account. Documentation Copy of PAN card as proof of identity. 2. A copy of one of the following documents as proof of address: Aadhaar CardPassportVoter’s ID Card driver’s license 3. Partnership certificate or certificate of partnership business and sole proprietorship certificate is required. 4. Audit of the last 3 years of financial reports with balance sheet, profit and loss account, tax audit reports 5. Bank statement for the last 6 months Interest and fees The interest is 15.50%. %.Benefits Collateral or collateral is not required. A credit line is offered by the bank. There are many branches of the bank in India. Loan processing is quick and easy. When you choose iStartup 2.0, you get the perfect solution for Healthcare, IT & Services, Real Estate, and Manufacturing. In short, it can turn out to be a small step to a big leap. Axis Bank Business LoansAxis Bank Business Loan Axis Bank is one of the banks that can be the right option for you. It provides the necessary funds or loans for your business needs. Small and micro businesses can easily apply for loans from Axis Bank. Loan Amount and TermThe loan amount is up to INR 50 lakhs. The term of office is 36 months. Eligibility The company must be at least 5 years old and in operation. Have a minimum annual turnover of INR 30 lakhs to INR 10 crores. Persons must be in the age group of 21 to 65 years. The person must be Indian to apply for the loan.DocumentationA copy of any of the below proof of identity documents:Aadhar CardPassportVoter ID Drivers LicensePan Card 2. A copy of any of the below proof of address:PassportPhone billUtility billBank statement with a verify the incorporation of the company. 6. The financial reports for the last 2 years, including income statement and balance sheet. Interest rate and costs The interest rate is 14.25% to 18.50%. Security is necessary. Minimum documentation effort. The application process for the loan is simple. The tenure for repayment is flexible. Conclusion

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