Business Loan
No Collateral I Up to Rs. 1 Crore I Tenure up to 60 months
4 reasons to choose our business loan
LOAN OF UP TO Rs. 1 Crore
TENURE OF UP TO 60 MONTHS
NO COLLATERAL
MINIMAL DOCUMENTATION
A loan for all your goals
Business
Expansion
Working
Capital
Machinery Purchase
Digitising
Business
Overview
Business Loans are unsecured in nature and can be taken for the purpose of business expansion. The
ultimate aim of providing business loan is to fulfilling the dreams of entrepreneurs. If you are planning
to expand your business, or starting up a new enterprise, MANTRA will provide you multiple options to
resolve your financial needs.
Startups can also apply for business loan. The criteria to avail such a loan
are quite different than the loan taken for already running business.
Eligibility criteria
• Nationality: Indian
• Business vintage: At least 1 years
• CIBIL Score: 700 or higher
• Work status: Self-employed
• Age: 21 years to 70 years*
*Higher age limit is applicable at the time of loan maturity.
Documents
• KYC documents - Aadhaar/ passport/ voter's ID/ driving license/
letter from NPR/ NREGA job card
• PAN card
• Proof of business ownership
• Other financial documents
Who can apply for business loans?
Self Employed
Professionals
Partnership/
Proprietorship Firms
Limited Liability Partnership Firms
Private Limited
Companies
DO’s and DON’Ts of business loans
Here are some points of do’s and don’ts of business loan including what you should and shouldn’t do before
applying for your loan and after receiving it.
Do’s
1. You should make your banking strong and
healthy as much as you can.
2. Before you go to a lender always do your
research work and compare products from
different lenders available in the market.
3. You shouldprovide right documents at right
place at the right time.
4. Before applying for business loan, it is essential
to know your business cash flow- i.e. the
combination of your business income and
outgoings. This will boost profit and will help
you to repay your EMIs timely.
5. Clear your dues on time. If you don’t repay your loans.
Don’ts
1. Don’t spend too much on things which are beyond
to your limits. For Example, you should only cover
your general business purposes and therefore can’t
be used for personal expenses.
2. Don’t put your assets at risk.
3. Don’t apply to multiple lenders at a time as it will
badly affect your credit score.
4. Also don’t take more than one loan at a time as
extending your debts can put your business at risk.
5. Do not be in a hurry to foreclose your loan as
lenders also charge for foreclosure.
EMI’s on the given period of time, then your
credit score could be at risk, which may impact
directly to your loan application.
6. Make sure you have completed all documents
formality before applying for loan.
Reasons for rejection of business loans
Here are the common reasons behind the rejection of business loan application.
1. Poor Credit History-Your credit score shows a greater impact when it comes to availing business
loan. The credit score directly reflects the creditworthiness of a businessman.
2. Incomplete (false) Paperwork/Documentation- This is also one of the major reasons for
rejection of business loan. To get approval for a business loan, an applicant must have to provide
relevant information and legal documentation.
3. Unhealthy (poor) Banking-The insufficient or inadequate bank balance may lead to failure of
business. So, there are high chances of loan rejection. Thus, it is essential for each and every applicant
to maintain higher banking (healthy transactions).
4. Negative FI-Field Investigation report can be negative due to the following factors(reasons)-
a. Door found locked/ Address not found.
b. Negative comments (review) about applicant.
c. Bad reputation/goodwill.
5. Poor Cash Flow/Insufficient Cash flow: This is another important factor which deeply affects
approval of your loan application. Lenders analyze the cash flow of your business to determine your
ability of repayment. If your cash flow is low then it would lead to rejection of your loan application.
6. Lack of proper business plan: If you do not have a proper business plan, chances are you may also
not be clear about how much fund you require and how are you going to use it? Therefore before you
present yourself before a lender make sure you have worked on all these factors and are very clear
about the funds.
7. Know the Purpose of your Loan: So, do you want a loan to renovate your office, or purchase or
upgrade a machinery, or buy some new technology, or expand your business, or develop a new
product, make sure that you are clear about the purpose for which you want the funds. If you are not
sure about the purpose of your loan, lenders will not be convinced with your proposal and chances are
your application may get rejected.
Frequently asked questions
A business loan is a financial offering that can help you meet your planned and unplanned business expenses. It is a kind of unsecured financing, and you can avail of one without providing any collateral.
You can get a business loan up to Rs. 1 Crore from Mantra Finserv by fulfilling the easy-to-meet eligibility criteria. Upon approval of your application, you can get the loan amount in your bank account within 48 hours.
Usually, it depends on the borrower’s profile. Lenders offer loans starting from Rs. 50,000 to Rs.
75,00,000.
In MANTRA we can help you get loans as per your requirement.
Generally, the tenure ranges between 12 to 60 months.
Mantra Finserv considers a CIBIL Score of 700 or above as a good credit score. A strong business turnover and having all your documents in check also reflect positively on your profile.
It Generally ranges from 1% to 3% of the loan amount + (GST).
Yes, startups in India can get business loans. Many lenders offer loans up to Rs.45,00,000.
You can repay through post dated cheques, electronic clearance service (ECS) or direct debit.
For startups, lenders offer business loans as term loans and working capital loans. While term loans are given for expansion of business, purchase of machinery, launching new projects etc, working capital loans are given to stock up inventories, pay rent, pay employees’ salaries, renovate office etc. These loans can be taken for a period of 1 – 10 years.
1. Working Capital Loan
2. Term Loan
3. Equipment Finance
4. Loans under Govt. schemes
5. Loans for women.
The rate of interest is decided on the basis of factors such as your annual turnover, banking transactions, business (proof of continuation) and your credit score.
Yes, there are government loans that you can avail for your startup business. Some of the government loans you can avail are:
• Mudra Loan Scheme
• MSME Business Loans in 59 Minutes
• The Credit Guarantee Scheme (CGS)
• Stand Up India Scheme
• Coir Udyami Yojana
• National Bank for Agriculture and Rural Development (NABARD)
• Credit Link Capital Subsidy Scheme
• National Small Industries Corporation Subsidy.