Is it possible to get a Business Loan (Unsecured Business Loan) for small businesses in Bangalore? The answer is very much YES!!! Read on to know more as to how do you qualify for a small business loan in Bangalore.
First, let’s make a hypothesis as to what constitutes a small business. There are varied explanations to this based on Turnover, Investment in Plant & Machinery, how the government defines the small business, and so on. For the sake of convenience & easier understanding lets presume a small business as a business with less than 1,00,00,000 of turnover annually. For further convenience let’s assume turnover of 1,00,00,000 & above as per the I.T.R filed by the business.
For businesses with a turnover of less than 1 Crore, the loan product is usually called a Personal Loan rather than a Business loan. There are few banks & N.B.F.C’s which lends to small businesses in Bangalore. Let’s look at some of the qualifying criteria.
Once you qualify to most of the above criteria, you can approach any of the banks for a small business loan or personal loan. This could sometimes be a tedious since each bank or N.B.F.C will have either own policies/products while lending. Getting the right bank to fund you can often be a herculean task. Hence approaching certain good online platforms or agencies is a good idea since they will do all the research works on your behalf free of cost! Your probability of getting a loan increases manifold. An added advantage is that most of the agencies will provide a doorstep service saving much of your precious time!
How much can you borrow as a small business loan?
This calculation is totally dependent on the financials & is done similar to a normal business loan. However, most of the banks will cap the loan amount to less than 15,00,000.
Rate of interest on a small business loan or a personal loan will be usually on the higher side since lenders perceive this as a slightly riskier portfolio. The rate of interest starts from 18-20% and can go up to 32% annually on a reducing basis. The rest of the charges remain the same with no much scope of bargaining. Processing fees & Insurance will be on the higher side.
Get in touch for expert advice.
We just sent you an email. Please click the link in the email to confirm your subscription!