What is a business loan?
A business loan provides funds for an eligible business purpose, such as equipment, expansion or operating needs. The suitable facility depends on the purpose and the business’s cash flow. A term loan and a working-capital facility do not work in the same way.
Business borrowing may be secured or unsecured. The lender reviews business income, trading history, financial records, existing debts and any proposed security. Match repayment commitments to realistic income rather than expected growth alone.
Potential advantages to consider
Support planned investment
Finance an eligible equipment purchase or expansion while spreading repayment over an agreed period.
Match funding to the purpose
Discuss whether a term loan or another eligible facility suits the expense and cash-flow cycle.
Keep requirements clear
Organised business records help you explain the requirement and review lender options more effectively.
What can affect eligibility?
- Business type, vintage and continuity
- Turnover, profitability and bank-statement activity
- Existing borrowings and repayment record
- Promoter credit profile, documentation and security where required
Documents and information to prepare
- Business constitution and registration records
- Applicant and business identity/address proof
- Business bank statements and existing loan statements
- ITRs, financial statements and applicable GST returns
Requirements vary by provider and profile. Never put documents, identity numbers, passwords or OTPs in the initial enquiry.
Open loan document checklistsCosts and trade-offs to review
Check interest/APR where applicable, processing fees and repayment frequency.
Review security, guarantees, covenants and any usage restrictions.
Allow for seasonal income and avoid taking a short repayment schedule for a long payback project.
What happens next?
- Share your requirement and your own contact details with our team. This first enquiry does not apply for a loan.
- Discuss your income profile, repayment commitments and the documents a lender may require.
- Review any lender proposal, including its repayment schedule, total cost and applicable terms, before deciding.
- If you proceed, the lender verifies your application and decides approval and disbursement. We assist with coordination.
Business Loan FAQs
Are business loans always unsecured?
No. Secured and unsecured facilities exist. The structure, security and guarantees depend on the lender and business profile.
Can a new business apply?
Some facilities require a minimum operating history. Tell our team your business stage so the relevant lender requirements can be discussed; approval is not assured.
Is GST registration compulsory for every applicant?
Documentation depends on the business and the facility. Provide applicable tax records and confirm the lender’s requirements for your entity.
Can business funds be used for personal expenses?
Use a business loan only for the purposes allowed by its agreement. Ask the lender about end-use restrictions.
Explore related guidance
Further reading: RBI: Key Facts Statement and APR ↗. External information is not an appointment claim or product recommendation.
General information, not a personalised loan offer, credit decision or insurance recommendation. Ask the relevant lender or authorised insurer to confirm the terms that apply to you.