A full information is about startup loan for new business in India.
Launched in April 2016 and headed by SIDBI, this scheme extends loans to enterprises in manufacturing, trading, or services. Under this scheme, loans ranging between Rs.10 lakh and Rs.1 crore can be availed. The repayment of loans taken under this scheme can be done in seven years while the maximum moratorium period allowed is 18 months.
Benefits of startup loan
- Fast approval within 24 hours-Apply for Bajaj Finserv Start up Business Loans online, and get a quick approval within 24 hours.
- Repayment tenor- Conveniently repay your Start up loan as per your business’ cash flow. The tenor ranges between 12 months and 60 months.
- Affordable- Start up Loans at attractive rates of interest to make these affordable for Start up in India. These loans have nominal fees and charges associated with them making them light on your pocket.
- Online account management- Start up Loans with online account management facility. You can access every detail of the loan including EMIs, tenor, principal, etc. any time with a few clicks. Alternatively, self-employed individuals running a Start up, can also apply for a Loan Against Property up to Rs. 3.5 crore
- No collateral- This is a Start up Unsecured Business Loan, so you need not pledge any asset as security against the funds.
Types of startup loans
- Merchant cash advances – Borrow money and pay it back with frequent, profit-based payments.
- Equipment financing – Borrow money for electronics or machinery your business needs.
- Invoice factoring – Sell unresolved invoices for up-front cash.
- Lines of credit – Borrow money as you need it, up to a limit.
- Term loans – Get a large lump sum of money and pay it back over many years.
- Peer-to-peer lending – Get matched with investing peers for a loan.
Eligibility Requirements for Startup Loan:
- The applicant should be 21 to 65 years of age
- ID proof of the individual like PAN card or Aadhaar card
- Proof of address like Driving license, Aadhaar card
- PAN card for company or firm
- Last six months bank statement
- Certified originals Memorandum and Articles of Association
How to apply for startup loan
- Visit the official website of the lender if you wish to avail the loan and apply for it online by filling up the form and submitting the required documents.
- Visit the nearest lender’s branch and submit the loan application form and documents.
- You can also call the lender’s customer care and request for assistance for applying for a startup loan.
Conclusion:- Obtaining a startup loan for a new business is a straightforward and easy process and like every other product. An individual applying for a startup loan should be aware of their requirements and their financial position as they have to pay back the loan along with the other expenses incurred from the business’ day to day activities.