Loans for Existing and New Businesses

What is a Business Loan?

business loanIf you own a business, you will need money to run it smoothly. When you run out of money, you might face difficulties to run your business. Business loans are sought for the expansion and growth of a business. Business loans are provided by various banks to business people for their short or long term financial needs. For any business whether in the initial stage or the growth phase, capital is required to keep up the momentum, acquiring the right kind of office space is essential for the success of the business. And to fulfil these purposes various private and public sector banks provide business loans to facilitate individuals to realize their dreams.

Purpose of a Business Loan?

Businesses raise their capital by inviting shares and debentures or simply borrowing from banks and other lending institutions. And the purpose of doing so could be different

  1. Expansion of an existing business
  2. Compensating a deficit in the operating capital
  3. Designing a new concept or product in a new business
  4. Starting a new business
  5. Purchasing Raw Material
  6. Purchasing machinery and Equipment
  7. Business startups
  8. Software Companies fund requirement
  9. Hiring new professionals

The eligibility criteria for obtaining a Business Loan?

Business loans are provided to all kinds of enterprises, be it a sole proprietorship, a partnership, or a private limited company. Although the income requirements of the concerned differ from bank to bank, normally net income of the concern should be more than Rs. 150,000 per annum for a business loan up to Rs. 15 lakh and over Rs.3 lakh for business loan above Rs. 15 lakh. A maximum of two incomes of the partners or directors holding a minimum of 25% stake each can be clubbed to the income of the concern.

Leading Business Loan Providers :

  1. Bank of Baroda
  2. Barclays Bank
  3. Canara Bank
  4. HSBC
  5. ICICI Bank
  6. ING Vysya Bank
  7. Citibank
  8. Kotak Mahindra Bank
  9. Reliance Capital
  10. Corporation Bank
  11. DBS
  12. Tamilnad Mercantile Bank
  13. Deutsche Bank

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