A startup business loan can help you receive funding for your small business. It can be any type of small business funding, including term loans, credit cards, and lines of credit. Businesses can choose from any type of funding according to their needs.

Like other firms, startups need a large amount of capital to invest in various areas, including working capital, marketing, manufacturing, and acquisition or expansion. As a result, to meet their cash needs, business owners search for the right starting business loan. Entrepreneurs can access instant funding to pay for their initial costs with the help of business loans.

Piramal Finance provides complete business loans with an interest rate of 16.49% p.a. for new businesses, allowing entrepreneurs to raise INR 20 lakh in under 48 hours.

Benefits of Startup Business Loans

A startup loan for a new business is a great way to acquire funding to kickstart or grow your business. The different benefits of a startup loan are as follows:

Quick Access to Funding

A major benefit of applying for loans for startups is that you get quick access to funding. Maybe you have a great business idea but lack the financial resources required to start it. In that case, you can apply for a startup loan to begin your new venture quickly.

Easy to Qualify

Unlike other bank loans, it's easy to receive business funding for startupss. With minimal documentation and other requirements, entrepreneurs can secure the funds necessary for the business. People with no collateral or credit histories can also easily secure startup business loans.

Greater Flexibility

A huge advantage of small business startup loans is their flexibility. Piramal Finance specializes in offering small business loans and understands the requirements of borrowers.

Few Restrictions Regarding Using the Funds

A new business startup loan comes with fewer restrictions related to using the funds. Borrowers are allowed to use the funds for any purpose associated with setting up or expanding a business. The funds can be used for everything from overhead costs to marketing campaigns. Therefore, borrowers will be able to use the funds best to fulfill business goals.

Different Types of Startup Business Loans in India

The different types of startup business funding that you can avail in India are as follows:

Working Capital Loan

Working capital loans or collateral-free loans are one of the best ways to get funding for a small business startup. Working capital loans are usually short-term, with a repayment tenure of up to 15 years depending on the loan amount.

Term Loan

Term loans for start up businesses are pretty common. Term loans can be grouped into short-term loans and long-term loans. Short-term loans have a repayment tenure of 12 months, while long-term loans have a tenure of up to 5 to 10 years.

Overdraft Facility

The overdraft facility enables business owners to withdraw funds from their bank account even when the balance is zero. A daily interest rate is applicable on the amount withdrawn from the sanctioned limit. This type of start up financing is usually offered against some collateral, usually FD with the bank.

Letter of Credit

A letter of credit is particularly common for trading businesses. It involves Piramal Finance offering the required funding to business suppliers. A letter of credit is often necessary for ensuring successful international trade.

Loans Under Government Schemes

The Indian government offers various loans for startups. Some popular government loan schemes include Startup India, PMEGP, and Standup India.

Equipment Finance or Machinery Loan

It is a type of business loan for startups to purchase machinery or equipment. All businesses taking this loan can enjoy tax benefits.

Merchant Cash Advance

Merchant cash advance institutions offer funds to businesses in exchange for a certain percentage of the business's daily credit card income. These companies get a specific percentage directly from the processor responsible for clearing and settling credit card payments.

Invoice Financing

Invoice financing revolves around borrowing money against the amounts due from customers. It is useful for improving cash flow, paying suppliers and employees, and reinvesting in growth and operations.

Requirements to Qualify for a Startup Loan

After you apply for startup business loans, Piramal Finance will check your personal and business credit, the age of the business, and the business's cash flow. We will also check the existing debt obligations of your business.

It is important to meet the following requirements to be eligible for startup loans:

  • The business should be up and running for at least a year.
  • The business should have a bank account.
  • The business owner has a minimum credit score of 750. However, Piramal Finance provides startup business loans to entrepreneurs with a low credit score
  • The business should provide financial statements as proof of its debt repayment capacity.

How to Determine How Much Business Funding You Need?

Determine exactly what you need the money for before estimating the amount of starting business finance you require. You might be tempted to apply for a loan greater than you need but remember the burden of repayment. On the other hand, acquire a loan amount that can meet the full range of your company's needs without leaving you in need of additional money.

Calculating the amount you need to borrow is busy work when you need the funds for a particular business expense or investment. Remember to adjust your business plan by considering the business loan amount. It is particularly necessary for recently started businesses.

You might want to think about a business line of credit if you need money for continuing expenses or if your company has recurring business needs. When you have a line of credit, you can get a credit limit and use it in times of need. As you keep repaying, the available credit gets replenished.

Get Your Business Loan for Startup Sanctioned in Easy Steps with Piramal Finance

Piramal Finance makes it relatively easy to apply for startup loans online. All you need to do is carry out the straightforward steps below:

Step 1:

Go to the Piramal Finance Startup Loan page. Read the features and eligibility criteria, and start the application process.

Step 2:

Click on Apply Now

Step 3:

Fill in the required Personal details such as Name, Contact Number, Birth Year, and Startup Loan Amount.

Step 4:

Choose the employment type Salaried OR Self-Employed

Step 5:

Add your monthly income

Step 6:

Select the State and Branch (enter the branch by city) and Submit the medical equipment loan application form.

Step 7:

Wait for a call from the official representative to move ahead with the processes.

After completing all the steps, like scanning, uploading the required documents, and paying the processing fees, wait until your medical equipment loan application is approved.

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Frequently Asked Questions

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