Business Loan for Expansion

A business expansion loan provides vital financial support to help your company grow and reach its full potential. Securing much-needed capital enables you to invest in new projects, hire additional staff, upgrade technology, or open new locations. This strategic funding empowers you to capitalise on opportunities, improve operations, and drive long-term success in a competitive market. 

Features and Benefits of SMFG India Credit Business Loans

SMFG India Credit's business loan is designed to support your company's growth with several key features and benefits:

Unsecured Business Expansion Loans up to INR 75 Lakhs*

With SMFG India Credit, you can receive business loans of up to INR 75 lakhs* without any collateral. This substantial amount can be used to purchase new assets, secure new office space, launch a new product, etc. The absence of collateral simplifies the application process, making it more accessible and less stressful for businesses seeking funding.

Flexible Tenure

Our business expansion loan offers flexible financing options with repayment terms starting from 12 months and extending up to 48 months. This allows businesses to manage monthly repayments in a way that does not strain their operational cash flow.

Quick Approval

SMFG India Credit specialises in a streamlined approval process for business loans. The approved funds for our loans for business expansion are disbursed within 72 hours* only, so you can access them quickly for essential business operations.

Competitive Interest Rates

With our business loans, you can benefit from competitive interest rates. This ensures you receive the capital needed for expansion without significantly impacting your monthly budget.

Convenience

Our online platform simplifies the process of applying for a business growth loan, saving you time and effort. This allows you to direct your focus on your business rather than dealing with heavy paperwork.

Transparent Terms

At SMFG India Credit, we prioritise transparency in our business development loans. We provide clear and straightforward terms, empowering businesses to make informed financial decisions without hidden surprises.

Eligibility Criteria and Documents Required

To qualify for SMFG India Credit's unsecured business loans, applicants need to meet specific eligibility criteria:

• Applicants must be between 22 and 65 years old, not exceeding the maximum age at the time of loan maturity.
• You should have a credit score of 750+.
• Your current business should have been operational for at least 3 years, plus you should have 5 years of business experience.
• Your business must be profitable for the last 2 years with a minimum turnover of INR 10 lakhs.
• Your business should have a minimum annual income (ITR) of INR 2 lakhs.

Here’s a list of documents you need to have to apply for a business loan:

• Identity Proof: Valid documents like a PAN Card or Driving License.
• Address Proof: Recent utility bills or passport.
• Bank Statements: Latest 6 months' statements.
• Income Documents: The latest 2 years' ITR, balance sheets, and profit and loss accounts are certified by a CA.
• Proof of Continuation: ITR, Trade License, or Sales Tax Certificate.
• Other Documents: Sole Proprietorship Declaration, Partnership Deed, or Memorandum & Articles of Association (certified by the Director).

*Please note that the eligibility will depend on several factors including our policy at the time of loan application. Additional documents may also be requested depending on your individual profile.

How To Apply for a Business Loan

To apply for capital for business expansion with SMFG India Credit, follow these steps:

• Start your business expansion loan application by using SMFG India Credit’s user-friendly online application portal. Select ‘Business Loan/SME Loan’.
• Fill out all the requested information carefully and submit essential documents. You will know shortly whether your application will go forward and receive a reference number if it is.
• Wait for loan approval as your application goes through various checks. Our representative may contact you if required.
• Once you accept the loan offer customised for you, we will proceed with the final loan approval and funds disbursement.
• Before you apply, we recommend you check the maximum amount you may be able to get using our business loan eligibility calculator.

Applicable Fees and Charges

When applying for loans for scaling a business with SMFG India Credit, it’s important to be aware of the associated fees and charges:

Interest Rates

Our business loan interest rates are minimal and competitive to optimise the cost of borrowing. The final interest rate will depend on several factors such as your location, net income, credit score, business stability, existing monthly obligations, and so on.

Late Payment Charges

If a payment is missed, a fee of 2% plus GST is charged monthly on the overdue amount calculated on a day-to-day basis. This translates to an annual rate of 24%.

Collection of Cheque/Cash

There are no charges for the collection of cheques or cash.

Cheque/ECS Dishonour Charges

If a cheque or ECS is dishonoured, a fee of INR 300 applies to each instance. Therefore, it is important to ensure that there are sufficient funds available in your account for each payment cycle.

Swap Charges

To replace post-dated cheques with ECS, a charge of INR 500 is applied per instance. Similarly, swapping ECS for another ECS also incurs a fee of INR 500 per instance.

Loan Cancellation Charges 

If the loan is cancelled before the first EMI, a fee of INR 1,000 will be charged.

Business Loan Processing Fees

The processing fee for a loan for business expansion is up to 2.75 of the loan amount + GST.

Prepayment Charges

Early repayment of the business loan can incur prepayment charges of up to 7%* of the outstanding principal.

It's important to understand these fees as it will help with financial planning and prevent any surprises during the loan process. 

SMFG India Credit’s business development loans provide essential support for business expansion and growth. Plan your long-term business growth financing by calculating your EMI with our free business loan EMI calculator and apply today!