A business loan is a loan specifically intended for business purposes. As with all loans, it involves the creation of a debt, which will be repaid with added interest. While a personal is given on a personal capacity and income, a business loan is given based on company’s income and capacity and is given in the company’s name.
Business loans are categorized broadly into following 2 segments.
1.Unsecured business loans – 3 year term loan for proprietorship, partnership, private limited companies and limited companies based on a sound balance sheet.
2.Secured business loans – Working capital funding in rupees as well as foreign currency for proprietorship, partnership, private limited companies and limited companies.
Business Loan Eligibility Criteria
Most banks have a common set of parameters that they evaluate loan applicants with, but what exactly these parameters are depends from bank to bank.