Need funding? Here’s a guide that will help you find the best bank for your startup loan. We have listed some important points for easy analysis while availing of the loan.
The first step to begin with a startup is to be very well aware of how to keep your interest rate as low as possible with maximum benefits.
Don’t panic, you will get answers to all your queries after going through this article and help you make a good decision.
Here is a list of banks that provide startup/business loans without much documentation and are preferred among all.
“If you would know the value of money, go and try to borrow some; for he that goes a borrowing goes a sorrowing. “ said Benjamin Franklin.
HDFC Bank Business Growth Loans
Citi Banks Business Loans
ICICI Bank Business Loans
Axis bank business loans
FAQs
HDFC Bank Business Growth Loans
You can scale up your business with additional financial help from HDFC bank. Every entrepreneur seeks minimal documentation, flexible tenures, and interest rates that are lower or competitive which you too can get with HDFC. Just check out the following.
Eligibility
- Entrepreneurs, Proprietors, Private Ltd. Co. and Partnership Firms involved in the business of Manufacturing, Trading, or Services.
- The business has a minimum turnover of Rs. 40 lakhs
- Individuals currently in business for a minimum of 3 years, with 5 years of business experience.
- Business involved in profit-making for past 2 years
- Business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum
- The applicant should be at least 21 years at the time of applying for the loan and should be no older than 65 years at the time of loan maturity
Documentation
If you are interested in a business growth loan, then you can apply with the following documentation.
- Mandatory Documents [Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)]
- A copy of any of the following documents as identity proof:
- Aadhaar Card
- Passport
- Voter's ID Card
- PAN Card
- Driving License
3. A copy of any of the following documents as address proof:
- Aadhaar Card
- Passport
- Voter's ID Card
- Driving License
4. Latest ITR along with computation of income, Balance Sheet, and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
5. Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
Interest Rate & Charges
Rack interest range is Min 11.90% & Max 21.35%
Loan Processing Charges - Up to 2.50% of the loan amount subject to a minimum of Rs.1000/- and a Maximum of Rs.25,000/- for salaried customers and Rs. 75,000/- for self-employed customers as per the board note.
An additional feature is access to the overdraft facility. You pay interest only on the utilized loan amount together with a credit protection plan.
Citi Banks Business Loans
It is referred to as Citibusiness which offers business loans through which you can manage working capital efficiently.
You can also opt for diversified MSME loan products which include working capital loans, short term loans, long term loans, overdrafts, and export-import finance facilities too.
Only 2% processing is charged on the sanctioned amount of the loan. Also, there are pre-closure charges (2%) and renewal fees(2%).
Whereas, Citibank hasn’t mentioned any loan amount, interest rate, tenure related details on its website.
Shubham Kumar
ICICI Bank Business Loans
ICICI also provides startup loans. it has come up with 'istartup 2.0', which brings a wide range of business solutions that assists you beyond your business and banking needs that help you save time and effort, and allow you to focus on your core business functions.
This facility has clearly been brought up for the startups to avail loans.
If you go with iStartup 2.0, including banking services, a lot of other services are also provided to you that play a very important role for the growth of the business such as debit cards with limits and much more.
You can get your company registered here, GST services, ROC filing, stamp paper, property registration, personalized Website, and wholesale growth.
Eligibility
Partnership firms, LLPs, Private and Public limited companies, one person companies(OPCs).
You have to opt for one of the 3 packages. In Platinum, the average quarterly balance has to be rupees 500,000. For Gold, it’s rupees 100,00 and for silver, it’s rupees 25,000.
Other benefits
- No QAB requirement up to 1 year
- Premium savings account
- Networking solutions
- FD OD & LAS
- API & connected banking solutions
Services offered
- Company registration
- GST/IT related services
- Property Registration
- Traveling facility
- Marketing support
- Identity pack
- Ecommerce pack
- Digital marketing pack and many more.
If you go with istartup 2.0, you are provided with the perfect solution for healthcare, IT & services, real estate, manufacturing.
In short, it might prove to be a small step for a big leap.
If you are one of the customers of ICICI bank, then you will appreciate the services provided by ICICI banks.
With istartup2.0 you will also get Startup Assist which is an exclusive bundle of services to simplify your startup operations.
Axis bank business loans
Axis bank s one of the banks which can be the best fit for you. Let's dive into it to know more about it features, eligibility, and documentation.
Features-
- No collateral- Yes, you would not be asked for any collateral and it's one of the eye-catching features among all which only specific banks provide.
- Maximum Loan up to Rs. 50 lakhs.
For more information, just visit the official website or contact customer care/ nearest branch.
Closing Thought
These are best suited for startups, self-employed, small businesses, professionals, and individuals having a profitable business. Usually, entrepreneurs owning the startups try to earn money on their own and invest in their businesses and get on track. If you rewind the history, then among those availing loans very few can utilize the sanctioned funds wisely.
Bank loans become a big problem for some but the only thing you must learn is to take advantage of the facility wisely.
FAQs
Which bank gives business loan easily?
- HDFC Bank Business Growth Loans
- Citi Banks Business Loans
- ICICI Bank Business Loans
- Axis bank business loans
What is a good credit score to get a business loan?
A Credit score of 650 is considered good to get a business loan.
For a collateral-free business loan: Credit score above 700.
For a secured business loan: Credit score 650 - 700.
How do I qualify for a business loan?
Below Requirements are needed to qualify for a Business Loan.
- Business Credit Score
- Annual Revenue of your Business
- Updated Business Plan with projected financial statements
- Additional financial collateral to secure the loan
Author: Shruti Kasera
Source : https://startuptalky.com/best-banks-for-startup-loans/
Date : 2021-06-08T07:32:06.000Z
Business loan for new business- Business owners and entrepreneurs can get a lump sum of cash or a line of credit with a small business loan, which they can utilise to stay in business and develop it for years. To know more about business loan then click- startup loan for new business
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