Knowledge

What is a business loan?

A business loan is simply funding or an unsecured loan that is doled out to business persons so that they can meet the daily requirements of their business and keep fuelling it towards success. Business loan borrowers are not required to submit any security in exchange for the loan.

The purpose of availing a business loan can be many, ranging from buying fixed assets, hiring staff, raw material purchase, and more. Basically, the requirement stems from the fact that external and immediate financial assistance is required for the business to sustain itself so that it can eventually flourish in the respective industry.

Uponly.in customers can avail a collateral-free loan with no minimum criteria, up to 1 Cr, with an array of flexible repayment options to choose from.

How does a business loan work?

To put it in simple terms, if you avail a business loan in a lump sum, from a bank or a lender, you are required to choose a plan with a certain rate of interest and repayment tenure. Thereafter, your EMIs are calculated. These EMIs are the fixed repayment amounts that you need to pay back over a certain period of time. Usually, the repayment tenure can be anywhere between 1 year and 5 years, depending upon the lender of your choice.

What is a competitive rate of interest?

We have an array of options to choose from. But we want to create awareness as well as make loan availing an easy process. A competitive rate of interest here can make or break the deal. Usually, 11.90% is considered a good rate of interest which does not poke a big hole in the customer’s pocket. This also depends on the amount and nature of the business loan you are applying for.

What is the eligibility criteria for a business loan?

• The customer should be an Indian citizen
• The customer should not have a criminal background
• The customer should be at least 18 years of age at the time of application
• The customer should be not more than 65 years of age at the time of maturity
• The customer should have a good credit score (check yours for free here)

Which entities can avail a business loan?

• Individuals
• Start-ups
• Private limited companies
• Public limited companies
• MSMEs
• Artisans and Retailers
• Manufacturers and Traders
• Sole Proprietorship Firms
• Partnership Firms
• Limited Liability Partnership
• NGOs, Co-operative Societies, and Trusts
• Self-employed individuals
• Professionals such as Doctors, CAs, Designers, etc

Connect with our 24/7 helpline if you do not fall in any of the aforementioned categories and find out if you are eligible.

How to apply for a business loan at uponly.in?

• Log in to uponly.in
• Choose business loan option
• Fill the form
• Tap on proceed until you reach the end
• Compare the best options
• Choose how you the selected quote

And you are done! It is super simple. Sit back and relax. Our executives will get in touch with you.

What is the business loan verification process at uponly.in?

Chosen the quote? Here’s how to proceed next.

• A uponly.in executive will get in touch with you
• Your application will be sent to the chosen lender
• Bank’s representative will connect with you
• Post verification, the loan would be disbursed

What are the special business loan schemes for women?

With women entering the business foray more and more and carving an impressive niche for themselves, more and more lenders are coming up with attractive schemes to woo them. Here are a few schemes to be taken note of:

• Mahila Samridhi Yojana
• Cent Kalyani from Central Bank of India
• Mahila Udyan Nidhi Scheme
• Stree Shakti Package from State Bank of India
• Dena Shakti Scheme from Dena Bank
• Udyogini Scheme
• Shringaar and Annapurna from Bhartiya Mahila Bank

While all these schemes push to empower women in the business arena, the applicants should keep in mind that they can only apply for the loan if their ownership in the business is 50% or more. Otherwise, they are not eligible.

What are the documents required for a business loan?

• Identity proof
• Address proof
• Business Address proof
• Proof of the existence of business for the last 3 years
• Recent passport-size picture
• Bank statement for the last 6 months
• Income Tax Returns of the last 3 years
• Trade license copy
• Financial documents duly attested by a CA
• Sales tax certificate
• GST registration certificate

What are the fees and charges involved in a business loan?

The fee, interest, and other charges vary from lender to lender. It also depends on the repayment tenure, the loan amount, and the interest rate.

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