Business Loans in India: An Essential Guide for Entrepreneurs
A business loan is a financial lifeline for companies aiming to grow, manage working capital, invest in assets, or tide over temporary financial challenges. Business loans are provided by banks, NBFCs, cooperative banks, and fintech platforms. These loans are generally of two types – secured and unsecured. Secured loans require collateral, while unsecured loans are offered based on credit scores, business income, and financial health. Loan amounts can range from ₹50,000 to ₹10 crores depending on the lender and business type. The interest rates usually range from 7% to 24% and may vary depending on loan tenure, business turnover, and past repayment history. Most lenders also offer flexible repayment options and minimal paperwork, particularly for MSMEs. With the growth of digital lending platforms, applying for business loans has become easier and faster. Businesses should ensure that they have the necessary documentation such as GST filings, IT returns, and financial reports to strengthen their application. A business loan can be a strategic tool if used wisely for capacity building, marketing, infrastructure, or talent acquisition. Choosing the right loan with favorable terms can significantly boost a company’s long-term sustainability.