What are the eligibility criteria for availing small business loans from SMFG India Credit?

To avail small business loans for a new business* or an existing one from SMFG India Credit, applicants should be self-employed professionals, manufacturers, retailers, or traders. The minimum age is 21 years, and the maximum age is 65 years. The individual should have a minimum annual turnover of Rs. 10 lakhs and must be running the business for at least three years with five years of overall business experience. Additionally, applicants must have a minimum credit score of 725.

How long does it take to get a small business loan from SMFG India Credit?

The process of getting a small business loan from SMFG India Credit takes approximately 72 hours* post-document verification and physical address proof verification.

What are the minimum and maximum loan limits offered by SMFG India Credit for small business loans?

SMFG India Credit offers small business loans with a loan limit ranging from INR 50,000 to Rs. 75 lakhs*.

What types of small business loans can different professionals or enterprises apply for?

Depending on your business needs, you can choose from multiple financing options, such as a startup business loan * for early-stage ventures or a working capital loan to support day-to-day cash flow requirements. You can also explore dedicated products like a business loan for doctors to manage clinic operations and a shop loan for store owners seeking timely financial support. *Please note that to qualify for an SMFG India Credit business loan, your enterprise should have been operating for at least 3 years, with a record of stable income and profits for the last 2 years.

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Rate of interest

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Loan Tenure

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Small Business Loan

A small business loan, also known as a commercial loan, is designed to support small enterprises in expanding operations or managing daily business expenses. Small business financing can cater to the urgent needs of a business, helping it maintain financial stability across various functions. SMFG India Credit unsecured loans for small businesses are tailored for micro, small, and medium-sized enterprises (MSMEs). Whether you need funds for business expansion, office renovation, salary disbursement, or vendor payments, our business loans can help you meet your goals efficiently.

With competitive interest rates, flexible repayment tenures, and a transparent loan process, our small business loans are ideal for entrepreneurs looking to scale their businesses without compromising financial stability.

Features and Benefits of Small Business Loan

Here are the key advantages you can expect when you apply for SMFG India Credit’s online small business loan:

Substantial Loan Amount

Avail of loans for small businesses of up to Rs. 75 lakhs* to support a wide range of expenses.

Flexible Repayment Tenures

Align your cash flow with repayments effectively with a flexible loan tenure ranging from 12 to 60 months*.

Competitive Interest Rates

Benefit from competitive small business loan interest rates that help reduce the overall cost of borrowing.

Convenient Online Application

Apply for small business financing online through a quick and hassle-free process that requires minimal documentation.

Unsecured Loans for Small Businesses

Access the funds you need to expand your venture without putting up valuable personal or business assets as collateral.

*Terms and Conditions apply

Eligibility Criteria for a Small Business Loan

Before you apply for a small business loan in India, you must meet certain eligibility conditions set by lenders. These criteria help assess your business stability, cash flow, and repayment capacity. Meeting the basic requirements improves your business loan eligibility and increases the chances of faster approval and loan disbursement. Applicants can also estimate their borrowing capacity in advance with a business loan eligibility calculator.

Eligibility Parameter	Criteria for Small Business Loan
Age	Applicant should be between 21 years at the time of applying and 65 years at the time of loan maturity.
Eligible Entities	Self-employed professionals, proprietorships, partnerships, and private limited companies engaged in manufacturing, services, or trading.
Business Experience	At least 3 years in the current business and a total of 5 years of business experience.
Income / Turnover	Minimum annual turnover of ₹10 lakhs and annual income (ITR) of ₹2 lakhs or more, with consistent profits for the last 2 years.
Credit Score / CIBIL Score	A minimum score of 725 is required.
Residential Status	Only resident Indian citizens are eligible.

Please note that given above are the basic eligibility criteria for new small business loans. The final eligibility will depend on several factors, including SMFG India Credit’s policy at the time of loan application.

Document Required for a Small Business Loan

Applicants seeking financing must submit the necessary business loan documents so their application can be reviewed and verified without delays.

The essential documents required for a small business loan include:

Documents for Small Business Loan	Accepted Submissions
PAN Card	PAN card of both the applicant and the co-applicant. A co-applicant may provide a Form 60.
Identity Proof (POI) and Address Proof (POA)	Passport Driving Licence Aadhaar Card Voter Identity Card from the Election Commission of India MNREGA job card signed by an authorised State Government officer National Population Register letter containing the full name and residential address
Bank Statements	Latest bank statements for the past 6 months
Income Documents (CA-certified)	Latest 2 years' Income Tax Returns with the computation of income Balance sheet & Profit and Loss account for the past two years GST returns for the last 12 months
Proof of Business Continuity (any one)	PAN Card Trade Licence Establishment Certificate GST/Sales Tax Certificate
Other Essential Documents	Sole Proprietorship Declaration Certified Copy of the Partnership Deed Certified True Copy of the Memorandum & Articles of Association (certified by the company Director) Board Resolution

If your small business loan application includes a co-applicant, their PAN/Form 60, KYC documents, and supporting records will also be required for verification.

The above checklist is indicative. Depending on the specific loan product and your profile, additional paperwork may be required according to the policy in place at the time of loan application.

Original identity, address, and supporting papers may need to be shown for onsite verification wherever applicable. Digital KYC may remove the need for in-person verification.
If the address on your document does not match your current residential address, a Deemed OVD may be accepted. Click here to access the latest Deemed OVD list.
A valid OVD containing your correct address must be submitted within three months of the date the initial address document was provided.

Interest Rates and Charges for a Small Business Loan

When it comes to securing the best small business loans, finding the right interest rate is crucial. With SMFG India Credit, you can rest assured that you'll receive a competitive interest rate tailored to factors such as location, net income, business stability, and existing monthly obligations. Not only that, but you can also avail of unsecured loan amounts up to Rs. 75 lakhs* with a flexible repayment tenure of up to 60 months*. With favourable terms and a loan designed to suit your specific requirements, you can benefit from securing minimal interest rates that will help propel your business growth.

Below is a quick overview of the business loan interest rates and charges you can expect when applying for an SMFG India Credit small business loan:

Fee Type	Applicable Charges
Interest Rate	Minimal and competitive interest rates (depending on several factors, including location, net income, business stability, collateral, existing monthly obligations, etc.)
Processing Fees	Up to 2.75% of the total loan amount + GST
Late Payment Charges	2% per month (24% per annum) on overdue amount calculated on day to day basis payable from the relevant due date till date of actual payment.
Collection of Cheque/Cash (per collection)	NIL
Cheque or ECS Dishonour Charges (per dishonour of cheque or ECS per presentation)	INR 500
Swap Charges - for any change in repayment instruments (per instance)	INR 500 + GST
Loan Cancellation Charges (loan cancelled before the first EMI)	INR 1000 + GST
Foreclosure Charges	Up to 7%* of the principal outstanding

Types of Small Business Loans

Small business loans come in different forms, each designed to meet a specific business need. Choosing the right option depends on your cash flow, loan amount requirement, and repayment capacity. Understanding small business loan types helps you apply for the most suitable business financing without putting pressure on daily operations or long-term growth.

Type of Small Business Loan	Description
Working Capital Loans	Used to manage short-term expenses like inventory, rent, salaries, and vendor payments. Ideal when cash flow gaps affect daily operations.
Term Loans	A fixed loan amount repaid over a set tenure. Suitable for business expansion, office setup, or large planned expenses.
Equipment Financing/Machinery Loan	Helps you purchase machinery or equipment needed for operations.

How to Apply for a Small Business Loan

Here’s how to get a small business loan in a few easy steps.

Initiate your online application here. Opt for ‘Business Loan/SME Loan’ and provide the required details. Submit the necessary documents, along with specifying the loan amount and tenure.
Submit the application to receive an initial decision based on the information you have entered.
If your request is considered for further review, a reference number will be issued. Keep it accessible for future updates.
A representative from SMFG India Credit may reach out if any clarifications or additional documents are required.
Once the verification is completed successfully, you’ll receive a customised loan offer. After you accept it, loan disbursement will be finalised, and the funds will be deposited into your account.

Need Funds to Grow? Get Your Small Business Loan Now!

SMFG India Credit actively supports small businesses by offering competitive interest rates and flexible repayment tenures tailored to your business needs. Through our seamless online process for new small business loans, you can access unsecured loan amounts of up to Rs 75 lakhs* without pledging any collateral. A strong CIBIL score can further improve your chances of approval and better terms. Use our business loan EMI calculator to estimate your monthly repayments. Apply online today and take the first step towards sustainable business growth!

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* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.

FAQs

Do I have to provide any security or collateral to apply for a small business loan?

No security or collateral is required for small business loans up to Rs. 75 Lakhs* at SMFG India Credit. These loans are unsecured, similar to personal loans, and do not require pledging personal or business assets.