Business Loan

image

Business Loan

At Airmoney, we understand that every business has unique financial needs, and that's why we offer a diverse range of business loan products tailored to suit both company and professional requirements. Our expertise allows us to suggest the right business loan product for professionals such as Chartered Accountants, Doctors, Architects, Designers, and various other professionals.

Whether you are a large corporation, mid-scale company, or a small-scale business, we design products that cater to your specific needs. Emphasizing the crucial role of cash flow in sustaining and expanding business operations, Airmoney serves as your trusted lending partner. We provide end-to- end business loan services, guiding you through eligibility pre-screening, consultation, documentation, processing, and eventual disbursement.

To simplify the application process, we recommend a straightforward 3-step approach, ensuring you are well-prepared to secure a business loan that perfectly aligns with your financial objectives. Count on Airmoney for a reliable and efficient business loan experience, supporting the seamless functioning and growth of your business.

  • First thing first – prepare your business plan to improve your chances of getting the loan. Credit score impacts the lending decision. So, get your credit report and know where you stand. Top it up with some good research on available business loan options in the market.
  • Second – Keep your basic documentation like ID Proof, Residence Proof, Business Proof, PAN, Board Resolution, etc. ready
  • Third – Ensure you fit in the age criteria of 21 – 65 years. Also get your financial documents ready. Banks/NBFCs usually check the minimum business turnover and minimum annual turnover as per ITR. Besides this, your business must have made profits at least in the last one year.

Business Loan Features & Benefits

  • Available for various business purposes viz. Term Loan, Working Capital, Business Expansion, Equipment Financing, Invoice Financing & Bill Discounting, Machinery loan, etc.
  • Faster Processing & Quick Disbursal (24 to 48hrs)
  • Competitive Rate of Interest with low monthly repayment
  • No Prepayment Charges (may vary from bank to bank)
  • Flexible Repayment Tenure
  • Minimum Documentation
  • No Collateral Needed

Business Loan Eligibility Criteria

  • Any registered business including Sole Proprietorship, Partnership firm, Limited Liability Company (LLC), Corporations, Retailers, Traders, Manufacturers, etc. can avail a business loan.
  • Applicant must be the citizen of India with necessary documentation of proof.
  • Applicant must be of 21 – 65 years of age.
  • Applicant must have a good credit history and credit score to be eligible for business loan.
  • Business must be operational for at least few months to a year or more.
  • Applicant must own either a residence or office/shop or a warehouse.
  • Business must have stable income, cash flow, and meet minimum annual revenue requirement.
  • In some cases of secured loans, a business collateral of inventory, equipment, real estate, or other valuable assets many be required.

Documents required for Business Loan

The list of documents required may vary depending upon the type of business.

  • Last 2 – 3 years Income Tax Returns
  • Last 12 months Current Account Banks Statements
  • PAN Card
  • Proof of Residence (Voter Card, Passport, Aadhar Card, Electricity Bill, Telephone Bill)
  • Address Proof for Business (Telephone Bill, Electricity Bill)
  • Provisional Financials of Last Financial Year along with Future Projections
  • Business Profile on Company Letterhead
  • Photographs of Promoters and Property Owners
  • Sanction Letter & Repayment Schedule of Existing Loan
  • GST Registration Certificate
  • Last 2 years GST Returns
  • D-VAT / Sales Tax Registration Copy
  • Rent Agreement of Factory & Residence (In case of rented property)
  • Business Continuity Proof of 3 years (ITR/Company Registration)
  • Company PAN Card, Certificate of Incorporation, MOA, AOA, List of Directors, Shareholding Pattern for Pvt. Ltd. Companies
  • Partnership Deed, Company PAN Card for Partnership Companies

Business Loan Fees & Charges

  • Processing Fees : 0.5% to 2% of Loan Amount
  • Loan Cancellation : NIL
  • Stamp Duty Charges : As per the State Government Norms
  • Legal Fees : 1000 – 10000/-
  • EMI / Cheque Bounce : As per the Bank Norms

Business Loan Products

EMI Based Loan (Term Loan): - Term Loans or EMI-based Loans have a set loan amount. Depending upon the type of term loan you choose, the loan value may change. Term loan comes with fixed repayment term, wherein the borrower is required to pay EMIs as per the repayment schedule. The collateral security may or may not be required for a term loan. Both, fixed and flexible interest rates are available for term loans. Business ownership is required to avail a term loan.

Overdraft Loan: - An Overdraft Loan or OD facility is provided by the bank to business owners. This facility is associated with your bank account. OD offers flexibility to be drawn anytime and manage your routine operational expenses and cash flow.

Dropline Overdraft Loan: - Dropline Overdraft loan allows the business to overdraw funds up to a limit from their current account. However, the actual withdrawal limits of overdraft loan reduce from the sanctioned limit every month. It is kind of a mix of term loan and OD. This is ideal for retailers, manufacturers and traders.

MSME: - Micro, Small and Medium Enterprises (MSMEs) are often in need of funding in order to scale up their businesses. The government of India has announced a number of MSME loan schemes like Pradhan Mantri Mudra Yojana (PMMY), Prime Minister’s Employment Generation Program, etc. for MSMEs, etc. to provide credit facilities to MSMEs. Credit facility of Rs. 50,000/- to 10 Lakhs can be availed at a subsidized rate of interest under MSME loan schemes.

CGTSME - Credit Guarantee Trust Fund for Micro & Small Enterprises: - The ministry of MSME and Small Industries Development Bank of India (SIDBI) established CGTSME to implement credit guarantee scheme for MSMEs. It offers coverage of 85% to Micro Enterprises (up to 5 Lakhs) 75% for others and 50% for retail activity. The new enterprises and the existing ones, both are eligible for this scheme.