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Business Loan In Mumbai

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What Is a Small Business Loan In India?


Small businesses in India are considered as the lifeline of the business industry of the nation. There are many micro, small and medium level businesses working towards making profit in India. To make huge conglomerate one has to start by taking small footsteps i.e. to create a small business. As more and more people getting involved in small business, the increase for funding needs is seen across India. Small businesses require various amounts of funds for their various business related needs. For that, they usually opt for a business loan. There are various types of business loans in Mumbai offered by banks and NBFCs for small businesses. Many times businessmen find themselves in need of credit to expand or fund their business for multiple reasons. They need the funds to buy some equipment, working capital gap, payment to creditors, pay off business dues, pay employee's salary, to expand etc. Businessmen can't put the funds in line from their personal savings. Thus they opt for business loans in Mumbai. The business loan works as the perfect financial aid for such situations. Taking a business loan is always a safe and easy way to tackle your business related financial needs. Many banks and NBFCs are used to give bigger amount for longer tenures for businesses which are earning profits in huge amount and have been there for a long period of time. Thus many believe that small businesses do not get loan easily. But now-a-days banks and NBFCs are giving away small amount loans with shorter tenure specifically to fulfill the needs of small businesses in Mumbai. These small business loans get quick disbursements and require minimum documents.

The terms and conditions to avail such a loan are different than the loan taken for already running business. Also each business is different in various aspects thus it requires different documents and is applied to different criteria. That's why banks and NBFCs offer customized business loan plans as per the requirement of applicant's. These plans are applicant/s centric and made with keeping financial alternatives in lure. Banks and NBFCs in Mumbai also offer special loans for women entrepreneurs. They are customized business loan plans for women to cater their needs and give them a chance to build a competitive business in the market.

Why should I take a Small Business Loan?


Businessmen or entrepreneurs take small business loans in Mumbai to meet with their various small business related needs. We have listed a few of them below: Small Business loan for working capital: Even in an ongoing business, businessmen require specific amount of funds to sustain and fund for their daily operations. These small loans help them to be sustainable soon and it can be paid off once the business starts to grow. This type of loan comes handy in a situation when the small business earnings are not adequate. Small Business loan for business expansion: Every entrepreneur wants his or her small business to flourish beyond the boundaries of Mumbai. This thought comes to their mind when small business starts to grow in the city and there is a positive flow of profit. Businessmen understand the need and urge to expand their own product i.e. the very own business. But expanding the small business beyond Mumbai is not easy, financially speaking. It surely needs a strong monetary backing to meet with the needs of expanding the business. Whether its location, equipments, new recruitments or paying for new communication channel, businessmen need a bucket full of finance. Thus they opt for small business expansion loan. By taking this loan, businessmen make sure that their respective business touches new heights of success. Small Business loan for buying machinery or equipment: Almost all types of small businesses in Mumbai need specific machinery or equipments for smooth functioning. Many times these equipments are higher in price. Thus businessmen opt for this type of loan to buy such equipments and pay it off with profits which will come from the use of these equipments or by putting them out on lease later. Small Business loan for developing infrastructure: Having a well built exquisite infrastructure is one of the key points of a small business in Mumbai. Your clients many times judge you from the infrastructure you work within. Also it is easier to many small businesses to have a well sorted customized infrastructure for smooth day to day affairs. Obviously having any kind of infrastructure, small or large, does not come in cheap. Thus businessmen opt for this type of loan.

Small Business loan for working capital

Even in an ongoing business, businessmen require specific amount of funds to sustain and fund for their daily operations. These small loans help them to be sustainable soon and it can be paid off once the business starts to grow. This type of loan comes handy in a situation when the small business earnings are not adequate.

Small Business loan for business expansion

Every entrepreneur wants his or her small business to flourish beyond the boundaries of its local position. This thought comes to their mind when small business starts to grow in its initial location and there is a positive flow of profit. Businessmen understand the need and urge to expand their own product i.e. the very own business. But expanding the small business beyond local capacities is not easy, financially speaking. It surely needs a strong monetary backing to meet with the needs of expanding the business. Whether its location, equipments, new recruitments or paying for new communication channel, businessmen need a bucket full of finance. Thus they opt for small business expansion loan. By taking this loan, businessmen make sure that their respective business touches new heights of success.

Small Business loan for buying machinery or equipment

Almost all types of small businesses need specific machinery or equipments for smooth functioning. Many times these equipments are higher in price. Thus businessmen opt for this type of loan to buy such equipments and pay it off with profits which will come from the use of these equipments or by putting them out on lease later.

Small Business loan for developing infrastructure

Having a well built exquisite infrastructure is one of the key points of a small business. Your clients many times judge you from the infrastructure you work within. Also it is easier to many small businesses to have a well sorted customized infrastructure for smooth day to day affairs. Obviously having any kind of infrastructure, small or large, does not come in cheap. Thus businessmen opt for this type of loan.

What are the Features and Benefits of a Small Business Loan?


Loan amount

Banks and NBFCs offer a minimum of Rs. 5,00,000 to maximum of Rs. 50,00,000 for small businesses. This amount is very low in terms of business loans; but perfect for the requirements of a small business. The amount is given as per the needs of the borrower's.

Customized loan plans

Every business and its requirements are different from each other. Banks and NBFCs understand this and thus they have come up with customized loan plans. They offer the loan plans as per the businesses requirements, credit history, resources, objective and the overall nature of the business.

Extra charges and fees

Banks and NBFCs understand the financial crunch the borrower/s must be having. Thus they charge very minimum processing fee which ranges from 0.50% to 2% + tax*. Also many banks and NBFCs do not charges prepayment charges allowing the borrower/s to pay off the loan whenever he/she/they can.

Short tenures

As the loan amount approved here is small, the tenure also falls shorter. Banks and NBFCs usually offer 1 to 3 years of tenure for short term business loan for smaller enterprises. This tenure is very flexible thus helping borrower/s to pay off the loan easily.

Quick approval and disbursement:

Many times small businesses require the funds sooner than later. Banks and NBFCs, keeping this thing in mind, approve the loan as quick as within 72 hours. The money disburses in the borrower's account immediately. The borrower's just has to present the correct documents at once.

No mortgage

As the loan amount approved here is small, the tenure also falls shorter. Banks and NBFCs usually offer 1 to 3 years of tenure for short term business loan for smaller enterprises. This tenure is very flexible thus helping borrower's to pay off the loan easily.

Uncomplicated eligibility criteria

Each bank and NBFC has different criteria to approve a short term business loan for smaller enterprises. They change as per their policies. They require s strong CIBIL score along with a strong and sustainable business proof. Also all the business related documents should be audited with ITR paid on time.

Minimum documentation

To get a short term business loan for smaller enterprises, the borrower/s has to submit minimum documents. These include ITR details; VAT returns; KYC details of applicant/s and organization; banks statements and details of current loan obligations.

What are the different types of Small Business Loans in India?


There are many types of businesses in Mumbai which require various types of loans. To match with all of their needs, banks and NBFCs have come up with various types of business loans. Some of these are mentioned below:

Small Business loans for self employed professionals

This is a type of unsecured loan which is given to self-employed professionals. The amount depends on the applicants' financial status and history. Self-employed professionals include CA, CS, doctor, engineer, architect, trader, commission agent, contractor etc.

Small Business loan to finance a project

This type of loan is given for a long term specific small business project. The company has to present a project assessment report on which the loan is granted.

Small Business loan to finance equipment

Almost all types of small businesses need specific machinery or equipments for smooth functioning. Many times these equipments are higher in price. Thus businessmen opt for this type of loan to buy such equipments and pay it off with profits which will come from the use of these equipments or by putting them out on lease later.

Small Business loan for working capital

Even in an ongoing small business, businessmen require specific amount of funds to sustain and fund for their daily operations. These loans help them to be sustainable soon and it can be paid off once the small business starts to grow. This type of loan comes handy in a situation when the small business earnings are not adequate.

What are the Eligibility Criteria to get a Business Loan in Mumbai?


Banks and NBFCs in Mumbai offer business loan to borrowers who fulfill their designed eligibility. The eligibility criteria changes from bank to bank and the profile of the borrower. But there are some commonalities which you have to follow or acquire to get a business loan in Mumbai from any bank or NBFC. Banks give business loan in Mumbai by dividing their customers' profession and their income history. The common and generic factors are listed below:

  • Banks and NBFCs have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories
  • Self Employed Professionals (SEP): Doctors, CA, CS, architects, engineer etc.
  • Self Employed Non Professionals (SENP): Trader, commission agent, contractor etc.
  • Also, if you are applying as a company, you can avail loan by applying under following entities:
  • 1. Partnerships/Propretorship
  • 2. Limited Liability Partnerships
  • 3. Private Limited Companies
  • Other important requirements to avail Business Loan:
  • 1. The minimum turnover of your business should be Rs. 60,00,000. The turnover should be in positive track.
  • 2. You should have minimum 3 years of experience in current business and 5 years of experience in overall business industry.
  • 3. Your business must be making profit for last 2 years.
  • 4. The age of the applicant should be minimum 25 year and maximum 65 years5. You should have paid your business' Income Tax Returns for last 2 years.
  • 5. You should have paid your business' Income Tax Returns for last 2 years.
  • 6. The borrowers should have a strong credit history. They should have a credit report ready for bank reviewing.

What are the Documents Required to avail a Business Loan?


  • 1. Neatly signed and filled loan against property application form.
  • 2. Passport-size photographs.
  • 3. Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • 4. Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • 5. Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
  • 6. PAN Cards' For Company /Firm/ individual.
  • 7. Copy of details of all existing loans.
  • 8. Bank statements of last 6 months from application date.9. Business proof (registration of business)
  • 9. Business proof (registration of business)
  • 10. Copy of ITR/Assessment Orders of 3 years
  • 11. Copy of challans proving that Advance Income Tax has been paid.
  • 12. Balance sheet and Profit & Loss details of business from last 2 years. These details should be certified by CA.
  • 13. Proof of continuation which will include ITR, trade license, establishment and sales tax certificate

Why Choose Ruloans To Apply For Business Loan?


Ruloans is Indias' fastest growing financial distributors. A comprised team with mammoth experience in finance and internally developed highly proficient Loan Calculator algorithm, we are pledged to offer solutions to all your financial needs. Borrowers can apply for a business loan with Ruloans' latest online application process. You can choose from a plethora of banks and NBFCs on our website for your loan. We help you borrow right.

Hassle free process

We have developed an efficient, smooth and easy process for our consumers to get a business loan. Our easy to use online procedure allows consumers to apply documents quickly. Our highly proficient Loan Calculator also guides the consumers to embark on a hassle free process.

Benefits of applying with us

We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a business loan with us, gives you a chance to avail the best offers and deals from our partner banks and NBFCs.

Compare your loan options

You can compare interest rates, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your loan as per your budget.

Free expert guidance and advice

Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, without charging a dime.

Privacy policy

We, at Ruloans understand the value of your documents and keeping them safe and private. Your loan applications are processed electronically with complete privacy and transparency.

How to Apply For a Business Loan on Ruloans ?


  • Applying for a business on Ruloans involves few easy steps:
  • Step 1: Go to the 'Small Business Loan ' page on our website and click on Apply Now box.
  • Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
  • Step 3: Our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
  • Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.
  • Step 5: Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.

Business Loan In Mumbai

Mumbai with a population over a million is the finance capital of India. Mumbai is host to almost all types of industries. Be it banking, finance, IT, entertainment industry, food and cutlery, wedding planning, medicine and hospitals, transport, construction etc.
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Business Loan Interest Rate

Business loan is taken by businessmen or entrepreneurs to meet with their business related needs. Business loan is an unsecured type of loan and the funds from this loan are used for business purposes only.
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Small Business Loan

Small businesses in India are considered as the lifeline of the business industry.There are many micro, small and medium level businesses working towards making profit in India.To make huge conglomerate one has to start by taking small footsteps.
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Frequently Ask Questions


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