A business loan is a credit facility offered to self-employed individuals, self-employed professionals, private companies, partnership firms, MSMEs, etc., for financing their working capital requirements, capital expenditure needs, and other business-related activities.
Unsecured Term Loans for MSMEs : Lenders provide Unsecured Term Loans to MSMEs for various business needs, including expanding operations, upgrading technology, and managing cash flow, without requiring collateral or security.
Secured Term Loans : Secured Term Loans are extended with the backing of collateral such as a mortgage on real estate, existing business assets owned by the applicant, financial securities, and other valuable assets.
Unsecured Overdraft Business Loan : This is a collateral-free credit line facility where the applicant can withdraw money from their current business accounts within a predetermined limit, even with a zero balance.
Secured Overdraft Business Loan : Lenders offer Secured Overdraft Business Loans to their existing customers maintaining their current/savings account with the lender to finance their business operations and cash flows. The credit line facility is offered against residential/commercial/industrial property, financial securities like LIC Policies, KVP/NSC, Fixed Deposits, Mutual Funds, etc.
Professional Business Loan: These loans are offered to self-employed professionals, such as doctors/medical practitioners, architects, CA, and CS, to finance business and working capital requirements including business expansion, purchase or construction of office premises, machinery, furniture, fixtures, equipment, and stocks.
Bill Discounting : This allows businesses to receive early payments against outstanding invoices by presenting the bill drawn on their customer to the lender, who pays immediately after deducting a discount or commission.
Machinery Finance : This credit facility allows applicants to purchase machinery and equipment for business purposes.
Purchase Financing : Lenders offer Purchase Finance to manufacturers, traders, and service providers to pay for raw materials and trading goods purchased from suppliers.
Working Capital Loans : These loans finance the day-to-day requirements of business units, such as purchase of raw materials and payment of wages.
Letter of Credit : This is a payment guarantee issued by the lender that helps businesses in international trade minimize their credit risk.
Merchant Cash Advance/Point of Sales : This loan facility is offered to small and medium enterprises engaged in online sales or having Point of Sale machines, with repayment made by direct deduction against their sales.
