Business Loan in Mumbai

Businesses in Mumbai might require loans to finance company decisions such as to regulate the cash flow, expand the business, increase sales, or to build inventory.

Capital loans can be availed from financial institutions in fast and efficient ways to supplement short-term business growth objectives.

Business Loan in Mumbai

Benefits of a Business Loan

  1. Most business loans – up to a certain amount – can be availed without personal or business asset collateral. This alleviates the burden or the risk of the possibility of losing assets.
  2. The fast and proficient loan apportioning by banks or other lenders makes it more convenient for business owners to apply for the loan. Ascertaining the credit-worthiness and disbursing the amount can all be done within 72 business hours.
  3. The paperwork burden is minimal as most of the processes are carried out online on the LendingKart website. The loans can be attained

Eligibility Criteria for a Business Loan

  • The business should be in operation for more than six
  • A turnover of more than Rs. Ninety thousand in the past three months should be evident before applying for the loan.
  • The business should not be blacklisted.
  • The location of the business should not be blacklisted and should not pose a security risk in the event of recovery. In Mumbai, these areas include Dharavi where recovery agents are not permitted.
  • NGOs and charitable institutions in Mumbai are not eligible for a business loan.

Types of Business Loan available to Enterprise Owners in Mumbai:

  1. Short term loan
    These loans do not require the submission of collateral security. It may be used for short-term expansion, paying off employees or to purchase
  2. Equity funding
    The solicitations in the company are used as security to procure the loan amount. It is accompanied by the risk of dilution of ownership.
  3. Credit line
    A revolving credit facility allows for business people to withdraw money up to a certain amount from their business account. Any amount that exceeds the amount that they have already as considered as the business loan amount.
  4. Asset finance
    Such loans are provided to the borrower for the purchase of machinery or other equipment. The borrower pays a regular amount to the creditor for the use of the asset.
  5. Loan on accounts receivable
    The loan is sanctioned to the business for the accounts receivable. A high credit rating is required to qualify for the loan.

How to Apply for a Business Loan

  • Submit an application online with your personal, financial and business details and await a business loan offers from us.  
  • Upload the required documents:
    Business proof documentsID proofFinancial documents of the company
    Partnership deed in case of a partnership businessPAN cardAudited reports
    Establishment certificateAadhaar cardincome tax returns,
    Incorporation certificateVoter IDbalance sheets
    Business registration proofPassportprofit and loss reports
    Company PAN card VAT returns for the past two financial years
      Bank statements – For the past six months, the statements should show 75 % of banking turnover.
  • Subject to meeting all the criteria for the business loan, the sanctioned amount will be disbursed in 3 working days.

Business Loan in Mumbai FAQs:

1. How do I improve my chances of getting a business loan?

Improving one’s Credit Score is the best way to enhance one’s chances of getting a business loan sanctioned. The longer a business has been up and running, the better the chances are of getting funding opportunities. Choosing the right lender and right financial product goes a long way in getting the best business loan for your enterprise.

2. How do I calculate the EMI for the business loan?

By entering the principal loan amount, rate of monthly interest and duration of the loan, the EMI can be calculated on the website using our online calculator . This allows the borrower to understand the breakdown of interest and plan out cash resources.

3. What types of businesses are eligible for a loan from Lendingkart?

LendingKart offers working capital loans and business loans to a myriad of small and medium enterprises in India across a spectrum of trades, products and services.

4. Do I need collateral to apply for the business loan by LendingKart?

All unsecured business loans by LendingKart do not require the submission of either business or personal collateral.