
So, What Exactly is a Commercial Loan?
A loan provided to a business by a financial institution such as a bank or a lending company is known as a commercial loan. It is used to cover capital expenses or operational costs, which the company otherwise wouldn’t be able to afford. Due to high upfront costs and some regulatory hurdles, small businesses are often prevented from having direct access to equity and bond markets for financing. This often leaves smaller businesses to rely on lending products such as unsecured loans, a line of credit, or term loans.Why the need for Commercial Loans?
- Expansion
- Equipment and tools
- Inventory management
- Increase working capital
- Consolidate Debts
How do I know if I am Eligible for a Commercial Loan?
If you can fulfil all the below requirements, you are all prepared to apply for a commercial loan.- The business must be in operations for more than six
- The minimum turnover of Rs. 90,000 or more should be fulfilled three months before submitting your loan application.
- The business should not be in the list of negative location.
- The only businesses that are not eligible for commercial loans are trusts, NGOs and charitable institutions.
What all documentation would you need to submit while applying for a commercial loan?
Here’s a list of documentation you would need to submit while applying for a commercial loan. We, at Lendingkart, believe in sticking to the bare essentials to process a commercial loan.
| Proprietorship | Partnership | Pvt. Ltd. / LLC / One Person Company |
Bank statement of 12 months | ü | ü | ü |
Proof of business registration | ü | ü | ü |
PAN Card Copy of Proprietor(s) | ü | ü | ü |
Aadhar Card Copy of Pre-closProprietor(s) | ü | ü | ü |
Copy of Partnership Deed |
| ü |
|
Copy of Company PAN Card |
|
| ü |
We accept any of the following as a Business registration proof
- GST filing
- TIN
- Trade License
- Business Registration Certificate
- Drug License
- VAT registration
- Gumastadhara
What would be the fees?
The fees that you would have to pay once your loan is approved by us are shown in the taken below:
Interest Rates |
Between 15% and 27% |
One-time processing fee |
1-2% |
Loan Tenure |
Up to 2 years |
Pre-closure fee |
0 |
Eligibility Criteria |
> Rs. 90,000 turnover for 3 Months |
Loan Amount |
Rs. 50,000 – Rs. 2 crores |
Repayment schedule |
Monthly or Bi-weekly |
What are the benefits of taking a loan from Lendingkart?
Small business commercial loans from us help you in growing your business to its full potentiality. Here are some of the benefits of letting us help you with your financial restraints:- Shorter waiting period
- Increased profits for your company
- You remain a boss
- Repayment options
- Shorter disbursal time
- Low-interest rates
- You get to prove yourself to other creditors
Commercial Loan for Small Business FAQs:
1. What is the maximum loan amount I can get?
Our loans start from Rs. 50,000 up to 2 crores
2. What is the turnaround time?
If all your documentation is in order, then you may hear from us in 1-3 day.
3. Can I get a business loan with bad personal credit?
Banks may refuse to give business loans to owners with bad credit, we do offer loans to owners with bad credit, but at a much higher rate.
