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How to Get a ₹10 Lakh Business Loan in India

Submitted by admin on January 24th, 2025

Securing a ₹10 lakh business loan in India is a straightforward process if you follow the right steps. With multiple financing options available, from banks to government schemes, you can find a loan tailored to your needs. Here’s a step-by-step guide to help you secure the funds for your business.

Step 1: Assess Your Needs

Determine the purpose of the loan and the exact amount required. Having a clear plan for how you will use the ₹10 lakh will not only help you but also strengthen your case with lenders. Prepare a detailed business plan outlining the loan’s purpose and your repayment strategy.

Step 2: Understand Eligibility Criteria

Eligibility criteria vary by lender, but common requirements include:

• Age: 21 to 65 years
• Business vintage: Minimum 1-3 years
• Credit score: 700 or higher

Lenders also evaluate your annual turnover and profitability to assess your repayment capacity.

Step 3: Explore Lending Options

You can choose from several sources:

1. Banks: Offer competitive interest rates but have stricter requirements.
2. NBFCs (Non-Banking Financial Companies): More flexible but often charge higher interest rates.
3. Government Schemes: Programs like Mudra Loans, CGTMSE, and Stand-Up India provide collateral-free loans to small businesses.

Step 4: Gather Required Documents

Prepare the following documents for a smooth application process:

• Identity proof (Aadhaar, PAN, etc.)
• Address proof
• Business registration documents
• Income Tax Returns (ITR) for the past 2-3 years
• Bank account statements for the last 6-12 months
• Detailed business plan

Step 5: Apply for the Loan

Most lenders allow you to apply online. Visit their website, fill out the application form, and upload the necessary documents. For offline applications, visit the nearest branch of your preferred lender.

Step 6: Verification and Disbursement

Once the lender verifies your application and documents, they will evaluate your creditworthiness. If approved, the loan amount is disbursed to your account, often within a few days.

Tips for Success

1. Maintain a strong credit score for higher approval chances.
2. Clear any outstanding debts to improve your financial profile.
3. Provide accurate and complete information in your application.

Conclusion

A ₹10 lakh business loan can help you expand your operations, purchase equipment, or manage cash flow. With proper preparation and the right lender, the process is hassle-free.

Need expert assistance? Contact DAILY FINSERV today for tailored business loan solutions!

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