Business Loan
Looking for a business loan online? SwipeLoan helps you explore and compare business loan options from its network of 100+ RBI-registered NBFCs. Business funding can be used for working capital, inventory, equipment, expansion, technology or other eligible business needs. Through the partner network, loan options can range from ₹2 lakh to ₹50 lakh, subject to the lender’s eligibility criteria and approval. SwipeLoan is a loan marketplace, not a lender, so the final loan amount, interest rate, fees, tenure and approval are decided by the lending partner.
100+ lending partners
Compare relevant options from RBI-registered banks and NBFCs through one platform.
Online process
Check options, compare offers and continue with the lender you choose
Secured and unsecured options
Where available, compare different types of business financing based on your needs.
Eligibility check
Check your potential options before deciding whether to submit a formal application.
Instant Business Loan
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What Is a Business Loan?
A business loan is financing taken to meet a business need such as working capital, inventory purchases, equipment, expansion, technology upgrades, marketing or other eligible expenses. The borrowed amount is repaid according to the lender’s agreed terms.
Unlike equity funding, a business loan does not require you to give up ownership in the company. You do, however, take on a repayment obligation, so the EMI or repayment schedule needs to fit your business cash flow.
Business loans are generally available in two broad forms:
- Unsecured or collateral-free business loan: The lender primarily evaluates your business financials, turnover, cash flow, credit profile and other eligibility criteria instead of asking you to pledge an asset.
- Secured business loan: The lender takes security such as property or another eligible asset. Secured borrowing may allow a larger loan amount or different pricing, depending on the lender and the security offered.
The right option depends on how much you need, why you need it, how quickly you need it and what your business can comfortably repay.
What SwipeLoan is, stated plainly: SwipeLoan is an AI-powered credit-matching loan marketplace and a Lending Service Provider (LSP). We do not lend money, set the final interest rate or make the lender’s approval decision. Your loan agreement is with the RBI-registered lending partner.
Key Features of Business Loans in India
- Business loan amount from ₹2 lakh to ₹50 lakh through SwipeLoan’s partner network, subject to the lending partner’s assessment.
- Online business loan process. Check options, compare offers and continue with the lender you select without starting from scratch with several lenders.
- Secured and unsecured business loan options. Availability depends on the lending partner and your business profile.
- Flexible repayment tenure. The available tenure depends on the lender, loan type and borrower profile. [VERIFY: confirm the maximum tenure offered across current partners before publishing a number]
- Business funding for different needs. Depending on the lender, financing may be used for working capital, inventory, equipment, expansion, technology or other eligible business expenses.
- Digital documentation where supported. The documents required depend on the lender, entity type and loan amount.
- No fee from SwipeLoan. Any processing fee, documentation charge or other applicable cost comes from the lending partner and should be disclosed before you accept the loan.
Why businesses take loans
Businesses usually borrow for a specific reason. Common examples include:
- Working capital: managing the gap between paying suppliers and receiving customer payments.
- Inventory: purchasing stock ahead of demand or seasonal sales.
- Expansion: opening a new outlet, adding capacity or entering a new market.
- Equipment and technology: purchasing machinery, software or other productive assets.
- Cash-flow management: covering a temporary business shortfall without giving up equity.
- Business growth: funding initiatives that are expected to create additional revenue over time.
The most important question is not simply how much a lender will offer. It is whether the repayment schedule matches the cash flow the loan is supposed to support.
Business Loan Eligibility Criteria
Business loan eligibility varies considerably between lenders. A business that does not fit one lender’s policy may still be eligible with another. Common factors include:
| Factor | What lending partners generally assess |
|---|---|
| Applicant age | The lender's minimum age and maximum age at loan maturity [VERIFY exact bands] |
| Business vintage | How long the business has been operating [VERIFY lender-specific minimums] |
| Annual turnover | Revenue level and consistency, often checked through GST filings, bank statements or financials [VERIFY lender-specific thresholds] |
| Credit profile | Business credit history and, where applicable, the promoter's personal credit profile |
| Cash flow | Whether business inflows are regular enough to support the proposed repayment |
| Existing obligations | Current EMIs, loans and other liabilities |
| Entity type | Proprietorship, partnership, LLP, private limited company or other eligible structure, depending on lender |
| Business registrations | GST, Udyam or other registrations where required |
Meeting these conditions does not guarantee approval. The lending partner makes the final credit decision.
The entity-type check matters. A lender may accept private limited companies but not sole proprietorships, or may have different requirements for different sectors. A rejection caused by an entity mismatch is not necessarily a judgement on the quality of your business.
Types of Business Loans in India
| Type | What it does | Typically suits |
|---|---|---|
| Business Term Loan | Provides a lump sum that is repaid over a fixed tenure | Expansion, equipment, renovation and other planned expenses |
| Working Capital Loan | Provides funds for day-to-day operational requirements | Inventory, salaries, supplier payments and temporary cash-flow gaps |
| Business Overdraft | Lets you draw funds up to a sanctioned limit as needed | Businesses with irregular short-term cash requirements |
| Professional Loan | Financing designed for eligible self-employed professionals | Doctors, CAs, architects, consultants and similar professionals |
| Equipment or Machinery Finance | Funds purchase or upgrade of productive assets | Manufacturing, clinics, workshops, logistics and other asset-heavy businesses |
| Invoice or Bill Discounting | Gives access to funds against eligible receivables | Businesses waiting on customer payments |
| Purchase Finance | Helps fund eligible supplier or inventory purchases | Traders, distributors and manufacturers |
| Letter of Credit | Supports certain trade transactions by providing payment assurance | Businesses engaged in eligible domestic or international trade |
| POS / Merchant Finance | Financing linked to business transaction flows where the lender offers it | Retailers, restaurants and other merchants |
| Startup Business Loan | Funding for eligible new or early-stage businesses | Startups and newer ventures, subject to lender or scheme rules |
Business Loans for Startups and New Businesses
New businesses can find traditional business loans harder to access because many lenders want a track record of operations and cash flow.
Where startup financing is available, lenders may look at the promoter’s credit profile, business plan, projected cash flow, sector, registration status and other information. Government-backed schemes can also play a role for eligible businesses.
Do not assume that a new business automatically qualifies for a startup loan. Eligibility depends on the lender or scheme and may be more restrictive than the term suggests.
Business Loans for Women Entrepreneurs
Women entrepreneurs can apply for business financing subject to the lender’s eligibility criteria. In addition, some government schemes provide specific support for women-led enterprises.
Stand-Up India and other eligible schemes may provide financing under their own conditions. Scheme availability, limits and applicant requirements should be checked at the relevant official portal before applying.
Business Loans for Manufacturers
Manufacturing businesses often need financing for machinery, raw materials, production capacity and working capital.
The right product can depend on the business cycle. A machinery purchase may be better suited to equipment finance, while recurring inventory needs may fit a working capital facility more naturally.
Business Loans for Traders and Retailers
Retailers and traders may need funding to purchase inventory, manage supplier payments, renovate a store or bridge short cash-flow gaps.
Depending on the business and lender, options can include working capital loans, overdrafts, merchant finance or a conventional business term loan.
Business Loans for Doctors and Professionals
Doctors, chartered accountants, architects, consultants and other eligible professionals may have access to professional or business loans for practice setup, equipment, office expansion and other business needs.
Requirements vary by lender and can include professional qualification, practice vintage, income documents and banking history.
Government Loan Schemes for Small Businesses (MSMEs)
Government-backed schemes can provide an additional route for eligible small businesses that may not have the collateral or track record required for conventional borrowing.
The following summaries are based on the source material supplied for this page. Re-verify all scheme limits and conditions at the official portal before publication, because government programmes can change.
PMMY — Pradhan Mantri Mudra Yojana
Pradhan Mantri Mudra Yojana supports eligible micro and small business activities through participating lenders.
| Category | Loan size |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishor | Above ₹50,000 and up to ₹5 lakh |
| Tarun | Above ₹5 lakh and up to ₹10 lakh |
| Tarun Plus | Above ₹10 lakh and up to ₹20 lakh, subject to the scheme's eligibility conditions |
The current source draft specifically notes that Tarun Plus is intended for entrepreneurs who have previously taken and successfully repaid a Tarun-category loan. Verify the current rule at the official PMMY source before publishing.
CGTMSE — Credit Guarantee Fund Trust for Micro and Small Enterprises
CGTMSE provides credit-guarantee support for eligible micro and small enterprises through participating lenders. The purpose is to reduce the lender’s credit risk so eligible businesses can access financing without depending on conventional collateral structures.
The source draft identifies these current figures for verification before publication:
- Guarantee coverage ceiling: ₹10 crore
- Guarantee fee: from 0.37% p.a.
- Special benefits for eligible women entrepreneurs
- Other guarantee-support features as defined by CGTMSE
You do not apply to CGTMSE as if it were a normal lender. The borrower applies to a participating lender, and the lender uses the guarantee framework where applicable
Stand-Up India
Stand-Up India supports eligible SC/ST and women entrepreneurs starting greenfield enterprises in manufacturing, services or trading.
The source draft cites loans from ₹10 lakh to ₹1 crore, subject to the scheme’s conditions. For non-individual entities, the source notes that at least 51% shareholding and controlling stake must be held by an SC/ST or woman entrepreneur. Verify these details at the official portal before publication.
PMEGP — Prime Minister's Employment Generation Programme
PMEGP is a credit-linked subsidy programme designed to help eligible applicants establish new micro enterprises.
The source draft cites government subsidy support of 15% to 35%, depending on applicant and project conditions. Verify the current subsidy slabs, project limits and education requirements at the official PMEGP portal before publication.
SMILE — SIDBI Make in India Soft Loan Fund for MSMEs
SMILE is a SIDBI initiative intended to support eligible MSMEs with soft-loan funding for expansion and modernisation.
Because scheme availability, product limits and application conditions can change, verify the current details with SIDBI before publishing fixed figures or claiming that applications are currently open.
PSB Loans in 59 Minutes
PSB Loans in 59 Minutes is a digital platform associated with business and MSME loan applications. It can provide an automated or in-principle decision experience for eligible applicants, but an in-principle approval is not the same as final sanction or disbursal.
The applicant still needs to satisfy the lender’s verification, underwriting and documentation requirements.
Why Choose SwipeLoan for Your Business Loan?
- 100+ RBI-registered lending partners on one platform, subject to the current partner network.
- Compare business loan options instead of approaching lenders one by one without first checking their criteria.
- Secured and unsecured business loan options where available through the partner network.
- ₹2 lakh to ₹50 lakh across the current SwipeLoan business-loan range, subject to the lender’s assessment.
- Business loan for small business and MSMEs where your profile fits a partner’s criteria.
- Online process for checking options and continuing with the selected lender.
- Published grievance route at grievance@swipeloan.in.
The purpose of a marketplace is comparison. A lender decides whether to approve the loan; SwipeLoan helps you explore relevant options before that formal application step.
How to Apply for a Business Loan Online via SwipeLoan
The process is designed to help you compare first and apply after you understand the available options.
- Tell us about your business. Provide information such as business type, loan amount, purpose, turnover, business vintage and other basic details.
- We match your profile with partner criteria. Different lenders use different rules for turnover, entity type, business age, sector, credit profile and location.
- Compare the available business loan options. Review the lender, loan amount, rate, tenure, EMI and applicable charges shown for each available offer.
- Choose the lender you want to approach. The application is then submitted to that lending partner.
- Complete lender verification. The lender may request additional documents and carry out its own underwriting.
- Final decision and disbursal. The lending partner makes the approval decision and, if approved, disburses the funds according to the loan agreement.
Why the order matters more for business loans than for personal loans
Business lenders can differ significantly in their underwriting rules. One may require a longer business vintage, another may accept your entity type but not your sector, and another may have a different turnover threshold.
Applying everywhere first can create unnecessary hard enquiries and repeated documentation. Comparing your options first can help you focus on lenders whose criteria are more relevant to your business.
A simple example:
- Lender A requires more business vintage than you have.
- Lender B does not serve your entity type.
- Lender C has a turnover requirement above yours.
- Lender D may still have criteria that fit your profile.
The first three outcomes were criteria mismatches. Understanding those rules before applying is the practical value of comparison.
Documents Required for a Business Loan
The exact document list depends on the lender, entity type, business age and loan amount. Common requirements can include:
| Requirement | Commonly requested documents |
|---|---|
| Identity proof | PAN, Aadhaar and other accepted ID for proprietor, partners or directors |
| Address proof | Aadhaar, passport, utility bill, rent agreement or another accepted document |
| Business proof | Udyam certificate, GST registration, incorporation/registration documents or other business proof |
| Income / financials | ITRs, income computation, balance sheet, P&L and other financial statements where required |
| GST records | GST returns or other tax records where applicable |
| Bank statements | Recent business or primary operating account statements [VERIFY typical period with partners] |
| Entity documents | Partnership deed, LLP agreement, MOA/AOA, board resolution or equivalent documents, depending on structure |
| Ownership / continuity proof | Business premises, ownership or continuity documents where required |
| Photograph | Passport-size or digital photograph where required |
Before applying, check that the names and registration details on your PAN, GST records, bank account and business documents are consistent. Mismatches can delay verification.
How to Calculate EMI for a Business Loan
(Interactive calculator widget sits here — inputs: loan amount, interest rate, tenure. Outputs: EMI, total interest, total repayment. Ship the widget above the explanation.)
For a standard reducing-balance term loan, EMI is commonly calculated using:
EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N − 1]
Where P is the principal, R is the monthly interest rate and N is the number of monthly instalments.
Worked example
For illustration, consider a ₹10,00,000 business loan at 18% p.a. for 36 months:
- Loan amount: ₹10,00,000
- Annual rate: 18% p.a.
- Tenure: 36 months
- Estimated EMI: approximately ₹36,152
- Estimated total repayment: approximately ₹13.01 lakh
- Estimated total interest: approximately ₹3.01 lakh
These are illustrative calculations only. The actual interest rate, tenure and EMI offered to you are determined by the lending partner.
Business Loan EMI Reference Table
| Loan Amount | 14% (1 yr) | 16% (2 yrs) | 18% (3 yrs) | 20% (4 yrs) | 22% (5 yrs) |
|---|---|---|---|---|---|
| ₹2,00,000 | ₹17,957 | ₹9,793 | ₹7,230 | ₹6,086 | ₹5,524 |
| ₹5,00,000 | ₹44,894 | ₹24,482 | ₹18,076 | ₹15,215 | ₹13,809 |
| ₹10,00,000 | ₹89,787 | ₹48,963 | ₹36,152 | ₹30,430 | ₹27,619 |
| ₹20,00,000 | ₹1,79,574 | ₹97,926 | ₹72,305 | ₹60,861 | ₹55,238 |
| ₹35,00,000 | ₹3,14,255 | ₹1,71,371 | ₹1,26,533 | ₹1,06,506 | ₹96,666 |
| ₹50,00,000 | ₹4,48,936 | ₹2,44,816 | ₹1,80,762 | ₹1,52,152 | ₹1,38,095 |
Illustrative calculations. The example rates are not SwipeLoan offers. Your actual business loan interest rate and repayment terms are set by the lending partner.
What a longer tenure actually costs your business
A longer tenure can reduce the monthly EMI, but the total interest paid can increase significantly.
| Tenure | Monthly EMI | Total interest paid |
|---|---|---|
| 1 year | ₹91,680 | ₹1,00,160 |
| 2 years | ₹49,924 | ₹1,98,178 |
| 3 years | ₹36,152 | ₹3,01,486 |
| 4 years | ₹29,375 | ₹4,10,000 |
| 5 years | ₹25,393 | ₹5,23,606 |
Illustrative at 18% p.a. on a ₹10 lakh loan. The right tenure is the one your business cash flow can support without creating unnecessary repayment pressure.
Business Loan Fees and Charges
The interest rate is only one part of the total cost of a business loan. Depending on the lender and product, other charges can apply.
| Charge | What it means |
|---|---|
| Processing fee | A fee charged for processing the loan application, often calculated as a percentage of the sanctioned amount [NEEDS DATA: current partner range] |
| Prepayment / foreclosure charge | May apply when you close the loan early [NEEDS DATA: partner-specific terms] |
| Part-prepayment charge | May apply when you repay part of the outstanding amount early [NEEDS DATA] |
| Penal charges | Charges related to overdue payments [NEEDS DATA] |
| Commitment charges | May apply to certain credit lines or undrawn facilities [NEEDS DATA] |
| Inspection / valuation charges | May apply where an asset or security needs to be valued [NEEDS DATA] |
| Documentation / legal charges | May apply depending on the product and lender |
| Stamp duty | As applicable under the relevant state rules |
| GST | Applicable to eligible fees and charges |
What to check before accepting a business loan
Look beyond the headline interest rate. Compare the APR, processing fee, repayment tenure, prepayment terms, penal charges and the total repayment amount.
A loan with a slightly lower rate can still cost more if the fees are substantially higher.
Margin money may also matter. When the loan is being used to purchase an asset, the lender may not finance the entire invoice. Your own contribution should be included in the business plan before you accept the facility.
Never pay an individual for guaranteed approval. SwipeLoan will not ask you to transfer money to a personal account or share your OTP, card PIN or CVV. If someone claims otherwise, use the official grievance channel.
Unsecured vs Secured Business Loans
| Feature | Unsecured Business Loan | Secured Business Loan |
|---|---|---|
| Collateral | Usually not required | Eligible asset is pledged as security |
| Loan amount | Often smaller | Can be larger depending on the asset and lender |
| Interest rate | Often higher because the lender carries more risk | Often lower than unsecured borrowing, subject to lender policy |
| Processing time | Can be faster when underwriting is digital | Can take longer because security may require valuation and legal checks |
| Documentation | Financial and business documents | Financial documents plus security-related documents |
| Best for | Working capital, inventory and shorter business needs | Larger expansion or asset-backed funding needs |
| Asset risk | No pledged asset under the unsecured structure | Pledged asset may be at risk if the borrower defaults |
Which one should you choose?
An unsecured business loan can make sense when speed matters and you do not want to pledge an asset. A secured business loan may be more suitable when you need a larger amount, a longer tenure or potentially lower borrowing costs and have an asset you are willing to offer as security.
The right choice depends on the amount, purpose, urgency and cash flow of your business.
How to Improve Your Business Loan Approval Chances
- Keep business and personal finances organised. Lenders need a clear picture of the business’s financial activity.
- Maintain consistent banking records. Regular business inflows are easier to assess than fragmented or irregular transactions.
- File GST and ITRs on time. Complete and consistent financial records can make verification easier.
- Check your credit profile before applying. Both business and promoter credit information may matter, depending on the lender.
- Apply for an amount your cash flow can support. A higher loan amount creates a higher repayment obligation.
- Keep your documents consistent. Names, registration numbers and business details should match across documents.
- Check government-backed options. Eligible businesses may have access to schemes such as Mudra, CGTMSE or Stand-Up India.
- Compare lender criteria before applying. Different lenders have different rules for business vintage, turnover, entity type and sector.
Things to Know Before Applying for a Business Loan
Interest rate type
Ask whether the loan is fixed or floating and understand how the rate affects your EMI and total repayment. The final rate is set by the lending partner.
Lender type differences
Banks, NBFCs and digital-first lenders can have different underwriting rules, documentation requirements, pricing and processing times. The right lender depends on your business profile.
Credit score and rating
A healthier credit profile can broaden your options and improve pricing. Lenders may look at both the business’s credit history and the promoter’s personal credit profile, depending on the product.
Processing charges
Ask exactly how the processing fee is calculated and whether it is deducted before disbursal. A fee deducted upfront means the net amount reaching your account may be lower than the sanctioned amount.
Prepayment rules
Understand whether part-prepayment or foreclosure is allowed, when it is allowed and what charges apply. Do not assume that all business loans have the same prepayment conditions.
EMI affordability
Measure the EMI against a weaker business month, not just an average month. A repayment that works only when sales are at their peak can create problems during a slower period.
Tenure selection
A longer tenure can reduce the monthly EMI but increase the total interest. Match the repayment period to the useful life of what you are financing and the cash flow it is expected to generate.
