How to Get Business Loan in Mumbai

A city that rewards efforts, offers the infrastructure and business-working facilities for startups and already existing businesses. And on the contrary, an all round business loan in Mumbai might really help. Multiple financial institutions offer the best business loan facilities to companies. Let us check out the necessary details associated with it. 

Business Loan In Mumbai

For millennial’s, entrepreneurship and businesses run on instinct and a zeal to make a name of their own. However, merely saying the term business shall not make you start one. For that, you need proper financing and a sophisticated work location. 

A city that rewards efforts, offers the infrastructure and business-working facilities for startups and already existing businesses. And on the contrary, an all round business loan in Mumbai might really help. Multiple financial institutions offer the best business loan facilities to companies. Let us check out the necessary details associated with it. 

Mumbai: Business Opportunity And Landscape

Mumbai is one of the largest metropolitan cities in Maharashtra and is home to some of the best educational institutes in India. It has also become a well-known destination for IT professionals, with the city being home to many major IT companies. The IT industry in Mumbai has been increasing over the past few years, and it is now considered one of India’s most important IT hubs. 

Statistics suggest that approx 56% of small businesses apply for loans in need of resources and infrastructure. The city also offers well-upgraded infrastructure and facilities for engineers, programmers, and developers. Mumbai is a city that has fostered innovation and entrepreneurship since the British Raj. 

It was once a tiny town, but over the last century, it has grown into a metropolis of nine million people. As a result, getting a business loan in recent years has become hassle-free. This is mainly because the government encourages the growth of the MSME sector by providing loans to this particular sector of businesses. Therefore, getting a business loan in Mumbai is especially good for small business people.

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Why Do You Need A Business Loan?

When it comes to business, many things need to be considered. In the US, 29% of small businesses shut because they run out on capital. And that hereby builds our case. Taking a business loan in Mumbai is one of the most efficient ways to get funds for your budding compa. Taking a business loan in Mumbai can be done in many ways, and you have many lending sources at your disposal. 

You can take loans from banks, private lenders, or crowdfunding platforms. There are many advantages of taking a business loan in Mumbai. One such benefit is that you will have more funds at your disposal, enabling you to start and grow your company much more quickly than if you were not taking out loans. Some of the benefits of business loans are:

Feed Your Innovative Mind

Young minds have big ideas! They want to start their own company and make a lot of money. So if you are borrowing for your business, one way to make the best of it is to take an unsecured business loan in Mumbai. For example, this will allow you to grow your idea into a real business while helping others do the same.

Influx does everything for you and helps you stay ahead of your competition.

Systematic access to capital through business loan in Mumbai is a blessing in disguise. It will always help you stay ahead of everyone else. Moreover, a loan against your POS will give you more resources and allow you to grow without worrying about quicker competition.

Faster Process

Did you know that 48% of businesses have turned to online lenders (due to longer turnaround time)? StartupYo is your empowerment platform to give wings to your business. If you are considering getting a business loan in Mumbai, you can find out more on StartupYo. Additionally, the procedure involved in the application for the business loan is easy and hassle-free—approval within 48 hours.

What Are The Reasons Behind Taking A Business Loan In Mumbai?

A business loan is a type of financing that small and medium-sized enterprises often use to fund their day-to-day operations. The advantages of a business loan include:

  • Low-interest unsecured loans in Mumbai. We help businesses with fast approvals and a simple application process.
  • The highest loan amount that India Home Loan offers is up to ₹50 lakhs.
  • You will receive an attractive and competitive interest rate.
  • Flexible repayment tenure up to 36 months
  • Minimal documentation and quick processing for Business Loans

Read more : 10 Upcoming Profitable Business Ideas In India

Which Are The Best Loans In Mumbai?

Many business loans available in Mumbai can be customized to meet your individual needs. The best type of bank loan for your business will depend on various factors, including what you need, your goals, and how much money you want to borrow. Here is the list of the different types of business loan in Mumbai and their multiple uses:

Secured Business Loans: This is the most common type of loan for businesses and is usually given by banks. 

Unsecured Business Loans: These are also known as signature loans, which means that the loan is not backed by collateral or guaranteed by a third party. 

Business Credit Cards: These cards allow small businesses to run transactions without having to pay upfront or wait for a monthly invoice to be paid off before receiving the funds.

Business Lines of Credit: These are also revolving lines of credit that allow a business to borrow money without waiting for a monthly invoice to be paid before receiving the funds.

Business Loans: This type of loan is backed by collateral or guaranteed by a third party.

Which Are The Top 10 Banks In Mumbai For Business Loans?

HDFC Bank 

HDFC Bank Limited is an Indian nationalized bank which is headquartered in Mumbai. HDFC bank was set up in the year 1994 in August month. It also has subordinates by the name of HDFC Securities and HDB Financial Services. The bank’s network distribution was 6,738 branches across 3,203 cities. 

Key highlights:

  • You can get a business loan amount of up to 50 lakhs without any minimum specification. 
  • The repayment tenure of the loan amount starts from 12 months to 48 months. 
  • The bank charges a 2% processing fee on the sanctioned loan amount. 
  • The rack rate of interest on the loan amount starts from 10% p.a. to 22.50% p.a.
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 State Bank of India

SBI is another public sector bank which provides financial services to people. This financial institution is headquartered in Mumbai, Maharashtra. It is the 43rd largest bank globally, with a total of 23% market share in assets. This multinational bank has 22,219 branches and 62,617 ATMs, along with 229 international branches in 31 countries. 

Key highlights:

  • You can apply for a business loan from 10 lakhs to 25 lakhs. 
  • The bank provides a drop-line overdraft facility to loan applicants.
  • The interest rate on the loan amount differs depending on the business requirements and is linked with MCLR.
  • You need to deposit a minimum of 40% as collateral security against the application and sanctioning of the loan. 
  • The repayment tenure lasts up to 60 months only. 

 Yes Bank

Yes bank is an Indian financial institution which was established in 2004. It is headquartered in Mumbai, Maharashtra. The bank offers its customers various corporate and retail banking services. In addition, Yes bank is in partnership with the US government-based OPIC and Wells Fargo to support women entrepreneurs. It is a public sector bank with a capital ratio of 17.0%. 

Key highlights: 

  • The bank offers a business loan of up to 50 lakhs to its customers.
  • The loan interest rate varies per the business requirements and current MCLR. The present MCLR of Yes bank is 8.75 for one year. 
  • The repayment period of the loan amount ranges between 1 to 5 years.
  • You need not keep any collateral as a security deposit for loan sanctioning. 

 Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian financial institution headquartered in Mumbai, Maharashtra. It offers banking and other financial services to corporate and retail clients. As of February 2021, the bank has 1,600 branches. It was founded in February 2003 with different investment banking divisions.  

Key highlights:

  • You can apply for a loan amount of a minimum of three lakhs to a maximum of 75 lakhs.
  • The fixed interest rate on the loan amounts ranges between 16% to 19.99% p.a.
  • The bank sanctions the loan amount after 72 hours of submitting the documents for verification.
  • The repayment tenure of the loan goes up to four years only.

Read more : Best business ideas after the lockdown

Axis Bank 

Axis Bank Limited is one of the most convenient Indian public sector banks for providing business loans at affordable rates. The bank was formerly known as the UTI Bank, with headquarters in Mumbai, Maharashtra. The bank’s main objective is to provide financial services to mid-size, large companies and retail businesses. Axis bank is located in 4,594 different locations all over the world. 

Key highlights:

  • The bank offers a business loan of a minimum of 50,000 up to 50 lakhs to its customers. 
  • The interest rate on loans ranges from 14.65% to 18.90%. 
  • The repayment period of the loan amount ranges between 1 to 5 years.
  • You need not keep any collateral as a security deposit for loan sanctioning. 
  • The processing charges on the sanctioned loan amount are 2% of the loan amount.

 Andhra Bank 

Andhra bank is another medium-sized public sector bank which works with a network of 2,885 branches. It provides financial and banking services in India, Dubai, the United States and Malaysia. Additionally, it has four extension counters and 3,798 automated teller machines. The bank is headquartered in Telangana, Hyderabad. This bank and Corporation bank merged with the Union bank of India in April 2020. 

Key highlights:

  • The bank offers business loans of a minimum of 10 lakhs and a maximum of 6 crores. 
  • The rate of interest on the loan amounts begins from 10.55%.
  • The bank provides a 10% margin to the business loan applicants.
  • As per the loan policy guidelines, the processing fee tends to vary.

Vijaya Bank

This is a PSU bank that was merged with Bank of Baroda with its headquarters in Bangalore. It is a nationalized bank in India that offers various financial services and products. It was established on 23 October 1931 by a group of farmers. The bank has a broad network of 2,031 branches and over 4,000 customer touch points. The bank is merged with Bank of Baroda with 2,136 branches and 2,155 ATMs. It was set up on the day of Vijayadashami and hence was named Vijaya bank.

Key Highlights:

  • The bank allows loans without collateral upto five crores, and the funds shall be available within two days after application.
  • You can extend the loan repayment by 120 months for your convenience.
  • The interest on loan amounts ranges from 10.99% to 20.00%.
  • The processing fee is 2.50% on a minimum of INR 1,000 and a maximum of 25,000.
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City Union Bank 

City Union Bank Limited is a private bank in India headquartered in Kumbakonam, Tamil Nadu. Formerly, the bank was known by the name Kumbakonam Bank Limited, which transformed into City Union Bank. It was established on 31 October 1904. According to 2016 survey reports, this bank had a market capitalization of 12,529.92 crores with 700 stable operating branches and 1,762 ATMs. 

Key highlights:

  • City Union Bank provides you with a business loan of a minimum of 15 lakhs up to 75 lakhs. 
  • The repayment tenure of both demand and term loans starts from 24 to 60 months. 
  • Small and micro companies or trading sectors are the only eligible entities for this business loan.
  • The rate of interest on the loan amount starts from 12.50 p.a.
  • The pre-closure charges on the sanctioned loan amount are 2% of the loan amount. 

Indian Overseas Bank 

Indian Overseas bank is one of the most famous nationalized banks in India. The bank provides services under the ownership of the Ministry of Finance and the Government of India based on Tamil Nadu policies. The bank was founded in February 1937 with the primary objective of overseas banking and foreign exchange business. The network distribution of IOB has 3,218 branches and 3,270 ATMs. records, the whole business of Indian Overseas Bank stands at 417,960 crores. 

Key highlights:

  • There is no minimum bar for business loan applications. However, the maximum is one crore, but it can also exceed depending on the requirements of the business. 
  • The loan interest rate depends on the business’s nature and requirements. 
  • The repayment tenure ranges between 12 months to 5 years. 
  • If your loan application is within ten lakhs, then you do not have to deposit any collateral for security purposes. 

Bank Of Baroda

The Bank of Baroda is a nationalized banking statutory body. It is headquartered in Vadodara, Gujarat. It is the largest public sector bank, with over 132 million customers. Bank of Baroda has 8,214 branches overall with 10,033 ATMs. The bank was set up on 20 July 1908 to provide worldwide financial and banking services. In addition, the bank has nearly 100 overseas branches under the ownership of the Government of India.

Key highlights:

  • You can apply for a business in this bank if you wish to raise working capital funds and facilities.
  • The interest rate on the loan amount is as per the bank’s rules and policies and the business’s nature.
  • The minimum loan amount approved for business is ten lakhs, whereas the maximum is five crores.
  • The loan amount’s security is mutually agreed upon between the borrower and the bank.

Read more : 10 Upcoming Profitable Business Ideas In India

What Are The Documents Required to apply for a business loan in Mumbai?

The documents required to get an unsecured business loan in Mumbai are minimal, and the process involved is also effortless. However, here are the essential documents you will need when applying for a business loan in Mumbai. 

  • Identity proof and PAN card of the firm company or the individual applying for the loan.
  • Proof of residence like voter ID, ration card, passport or driving license. 
  • Income documents include ITR and bank statements for the last two years. 
  • Proof of continuation like sales tax certificate, trade license establishment. 
  • A few other documents are copies of the Partnership deed, declaration of Sole Proprietorship firm, and official copies of the Memorandum with Articles of Association and Board Resolution.

This list of documents is not complete. It’s just the standard documents which every financial institution asks for. The rest solely depends on the financial company you select for loan sanctioning. 

What Are The Conditions For Loan Eligibility in Mumbai?

The business acumen of Mumbai entrepreneurs appeals to most money lenders. However, there are specific criteria which determine whether you are eligible for a business loan application or not. These are as follows:

  • Owners, self-employed people in a legal partnership and private limited companies. It also includes companies involved in Pune manufacturing and trading services. 
  • Employees who have been in the same current position in their company for at least three years and have a minimum of five years of business knowledge. 
  • Businesses which have an average turnover of at least ten lakhs.
  • The businesses must earn at least two lakhs annually. 
  • Individuals must be 22 years before the date of application and up to 65 years according to the date of maturity of the loan. 
  • Companies must make profits within the past two years of working. 

 What Is The Process Of Applying For Business Loan In Mumbai?

Getting a business loan from reputable firms is not an easy job. However, it is not impossible either. The foremost step is understanding the requirements and meeting the eligibility criteria for a business loan application. However, now you do not have to wait in a long queue for your turn to apply for a loan or to fill in the necessary forms. 

Many banks offer business loan in Mumbai and have different requirements. Hence, you should research the prospects and requirements to quickly get a small business loan in Mumbai. Here is how you can apply for business loans effortlessly, which is easy and user-friendly. 

Apply Online

  • Click the Apply Now button through the bank’s website. This will open you to a web-page where you must provide the necessary information about yourself and your business.
  • Enter the amount of your loan you require with the duration you would like the loan for. On the basis of the information you provide, you shall receive immediate confirmation.
  • You will receive an ID number, and the representative will reach out to you as the first contact.
  • The application will undergo several verification steps in which the information provided will be checked against the submitted documents.
  • Once the loan verification process is completed, you will receive a personalized loan proposal. Once approved to receive the loan, the money will be deposited into your account.

Wrapping It Up!

Hence, you can see that applying for a business loan in Mumbai is so easy and hassle-free. Additionally, if you have second thoughts about the loan application, you must check out the advantages of business loans. It shall help in boosting your business by financing all the requirements. Also, your loan application is now available through an online procedure. You can go through the same on the official website of the preferable financial institution.

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