Published on Jan 11, 2021Updated on Sept 23, 2026
Business loans are primarily an unsecured loan type that helps business owners and entrepreneurs to meet business goals and run their operations smoothly. A business loan can be taken for working capital needs, buying new machinery, capital expenditure, marketing expenses and much more. With easy eligibility criteria and flexible repayment terms- you can ensure growth of your business while managing cash flow in a better way.
Business loans can be secured or unsecured. Secured business loans are those which are secured against assets pledged by the borrower as collateral. These loans typically involve large amounts (more than INR 1 crore*) with tenures upto 15 years or so (depending on the nature of the asset pledged) which are required by business owners for long term investments. On the other hand, unsecured business loans are for smaller amounts up to 1 crore*, and have shorter tenures up to 60 months. These are typically meant to help business owners meet short term goals such as purchase or upgradation of machinery / inventory, working capital, etc.
There are two ways through which you can avail a business loan, either through an online process or by visiting the nearest branch office of the lender.
However, before applying for a business loan, use the online free business loan eligibility calculator and business loan EMI calculator to know the maximum loan amount you may be eligible for, and the best tenure you can select so that you can easily manage your monthly EMIs within your budget. It is also advisable to go through the basic business loan eligibility criteria of the lender as well as the documentation requirements before applying to reduce the chances of rejection.
While signing the loan documents, carefully read through the terms and conditions including the proceeding fees, repayment tenure, foreclosure charges* and other charges to eliminate the chances of any future discrepancies. *T&C apply
Several factors are used to calculate your business loan EMI. These typically include the total loan amount, rate of interest, and repayment tenure. However, as availing of a business loan is a big decision, it is helpful to get a clear idea of the kind of financial planning you would need to do. A business loan EMI calculator is a useful tool to get a realistic idea of your monthly financial commitments.
Simply input your loan amount, interest rate and loan tenure into the calculator and press ‘Submit.’ The results will be immediately displayed on the screen. It is important to note that this EMI is just an estimate. The final EMI will be determined after a complete assessment of your eligibility and creditworthiness by the lending institution.
Must Read: 10 Types of Business Loans in India
Applying for a business loan is one thing, and getting it approved is a different joy altogether. Here are some strategies you can use to ensure that your loan application is accepted:
To ensure loan approval, adopting a comprehensive approach is essential. Crafting a detailed business plan builds trust with lenders, while maintaining a robust CIBIL score above 725 strengthens your creditworthiness. Take control of your financial journey and apply for a business loan with SMFG India Credit today. Your aspirations are closer than you think, and SMFG India Credit is here to support your entrepreneurial dreams.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
The content of this article is for information purposes only and does not constitute as, an offer or advise to avail any products or services from, or, a commitment to grant any loan by the company. It is not intended to create any rights or obligations against us. All content is provided "as is" without any warranty of any kind, either express or implied & we disclaim any warranty or representation, whatsoever, in regards to the content. Please refer to the Privacy Policy of the company to understand the use, processing and storage of your personal data.
Yes, having a good credit score certainly favours a smoother loan process for your business. It is best to maintain a CIBIL score over 725 as this demonstrates healthy credit behaviour to lenders.
Although businesses can often deduct the interest payments on their loans for tax purposes, the principal amount borrowed does not usually offer similar benefits. Thus, having a thorough understanding of the tax implications and deductions associated with business loans is essential for proper tax planning and compliance.
The four stages involved in availing of a business loan are as follows:
Getting started with an online business loan application is simple and involves the following steps:
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