Overview of Bajaj Finserv Business Loan
Start-ups and businesses can take out loans for a variety of reasons. There is always a need for financing, either for upgrading equipment, onboarding new employees, or increasing the size of the office. When evaluating a company, several factors are taken into consideration, including its creditworthiness, its history, any collateral that it may be able to provide, and its present financial status.
Read More: 9 Best Ways to Negotiate a Business Loan in India
Bajaj Finserv Business Loan
Finances are a major factor in the start-up of any business. It is rare for small business owners to invest their funds into their enterprises. They require working capital to keep their business activities running smoothly and increase profits. In order to do that, they rely most of the time on traditional banks or finance companies to obtain capital.
Start-ups and businesses can take out loans for a variety of reasons. There is always a need for financing, either for upgrading equipment, onboarding new employees, or increasing the size of the office. When evaluating a company, several factors are taken into consideration, including its creditworthiness, its history, any collateral that it may be able to provide, and its present financial status.
In the following section, we will discuss the definition of a business loan, various types of Business Loans offered by Bajaj Finserv, the eligibility requirements, rates of interest, documentation requirements, and so on.
What is a business loan?
A business loan can be defined as a financial arrangement made between lenders and businesses. The financier provides capital for the venture, and the business returns it after a pre-determined period and at a predetermined rate of interest.
A business owner seeking capital should know the difference between guaranteed financing and funding without collateral. The reason is that your decision will determine the type of interest rate, repayment conditions, and whether or not your lender has the right to seize your property.
Read More: Small Business Loans: Features, Eligibility, Documents, Steps to Apply
Types of business loans:
To cater to the special requirements of entrepreneurs in India, Bajaj Finserv offers a variety of small business loans. These include:
- Loans to facilitate working capital – Designed to help companies handle their temporary cash flow needs and to facilitate daily operations.
- Machinery loans – Obtaining financing that is geared towards facilitating business operations such as purchasing new equipment or machinery is called a Machinery loan.
- SME and MSME loans – are specifically tailored to accommodate the requirements of SMEs and MSMEs.
- Small business loans for women entrepreneurs- To help them become self-sufficient and run successful businesses by providing them with the necessary financial support.
- Start-up business loans- funding made available to start-up businesses for them to expand their business and grow their market share.
Besides the information presented above, Bajaj Finserv business loans can be further differentiated into two groups: secured and unsecured. You can choose between both options depending on your business needs.
Secured Business Loan– The term secured loan refers to financial support backed by collateral. The purpose is to encourage the borrower to repay the loan on time. Both salaried and self-employed individuals may apply for the secured business loans offered by Bajaj Finserv. Affordable funding can be easily obtained for your business with easy eligibility criteria and minimum requirements for documentation.
Unsecured Business Loan– Unsecured loans operate solely on the borrower’s ability to repay and are not protected by collateral. A wide range of features is also available in the Bajaj Finserv Unsecured Business Loan to meet the needs of SMEs. In addition to advancing operations, modernizing machinery, and boosting working capital, these funds may be used for any unforeseen expenses.
Both of these loans have slightly different eligibility requirements and interest rates, as explained in the following article. We will start by looking at secured loans.
Secured Business loan
The highlights:
- Loan amount- The maximum loan amount is Rs75 Lacs.
- Flexible repayment tenors- Repay your loan over a long tenor of 12 years.
- Access to your loan account online – You can manage your loan account anywhere anytime with their customer portal.
- It is available to all. You can apply for a secured loan whether you are an employee or an entrepreneur.
- Documentation is minimal- The process of loan approval is as quick as possible with just a few documents required.
- Flexi loan facility-Through the unique Flexi facility, you can pay 45% lower EMIs at the beginning of your tenure
- Loans on multiple properties- As the name suggests This type of mortgage allows you to provide several properties as collateral for a bigger loan amount.
Eligibility:
The following are the eligibility criteria for a Secured Business Loan:
National– Indian national
CIBIL score– 720 or higher
Work Status- self-employed or salaried.
Required property ownership: Must be a homeowner or business owner within the vicinity of Bajaj Finserv locations.
Business vintage – Minimum 3 years
Age limit:
- Self-employed individuals 18 to 80 years (At the time of maturity, the participant should be 80 years old.)
- Salaried individuals- 25-60 years (At the time of maturity, the participant should be 60 years old.)
Secured business loans require the following documents:
- Registration documents and proof of identity for the firm along with KYC documents
- Statement of business bank accounts for six months
- Two months’ worth of salary slips (if the applicant is salaried)
- Deed of partnership/AOA/COI of the company (if applicable)
- The applicant should have an account that has a minimum 1-year vintage
- Property documents such as Purchase deeds, tax receipts, and electricity receipts
Fees and Interest rates:
| Fee categories | Rates applicable |
| Rate of interest | 13% to 16% per year |
| Processing Fee | A maximum of 2% plus taxes on the loan |
| Statement chargesStatement of account/repayment schedule/foreclosure letter/certificate of no liens/interest paperwork/any other paperwork | There is no fee as long as you download it through the easily available customer portal. Can acquire a physical copy from any of the branches at a minimal charge of Rs 50/- per document inclusive of all taxes. |
| Penal interest | You may be subject to a penalty interest rate of up to 2% per month if you are not able to pay your loan on time, in addition to any taxes due. |
| Charges for document processing | There is a processing fee of Rs. 2360/- inclusive of all taxes. |
| Stamp duty | State-specific |
| Prepayment charges | 2% plus taxes (after more than 1 month from the date of loan disbursal) |
| Foreclosure charges | 4 % of the total outstanding loan amount |
| MOF (legal and technical charge) | Rs. 6000/- |
Read More: Myths about unsecured business loans debunked
Unsecured Business loan
The highlights:
Reduced EMIs- The Flexi facility allows you to pay 45% lower EMIs for the initial portion of the tenor.
Loan amount– Fulfil your wide range of financial needs effortlessly with high loan approval rates. As much as Rs 45 Lacs can be loaned.
A long repayment period – With a tenor of up to 7 years, you can repay your loan with affordable EMIs.
Exclusive Pre-approved loan offers – Apply for pre-approved loans in a few clicks by submitting your basic information online.
Zero collateral – Take out high-value business loans without pledging any assets or securing any collateral.
Eligibility:
The following are the eligibility criteria for an unsecured Business Loan:
Nationality– Indian
CIBIL rating– 685 and above
Status of employment: self-employed
Business vintage – Three years minimum
Age limit- 24 to 70 years (At the time of maturity, the participant should be 70 years old.
Secured business loans require the following documents:
- KYC documents
- Proof of address
- Proof of business ownership
- Bank statements of the previous month’s
- Other financial documents
Fees and Interest rates:
| Fee categories | Rates applicable |
| Rate of Interest | 17% per annum onwards |
| Fees associated with processing | A maximum of 2% of the loan amount plus taxes. |
| Charges associated with bounces | There is no fee as long as you download it through the easily available customer portal. Can acquire a physical copy from any of the branches at a minimal charge of Rs 50/- per document inclusive of all taxes. |
| Penal interest | will be 2 % per month in case of any delay in monthly EMIs. |
| Document Processing charges | Rs. 2000/- plus tax. |
| Document/ statement charges | There is no fee as long as you download it through the easily available customer portal. Can acquire a physical copy from any of the branches at a minimal charge of Rs 50/- per document inclusive of all taxes. |
| Maintenance charges | 0.25% to 1% in addition to taxes on the total loan amount |
| Foreclosure charges | 4% of the loan amount payable upon prepayment, plus applicable taxes |
How to apply for a Bajaj Finserv Business Loan?
- Application forms can be filled out by entering your personal and company-specific credentials.
- Upload your documents: share your bank statement for the past 6 months
- Receive a call from their rep: within 24 hours.
- Get your loan amount in just 24 hours: on meeting the eligibility criteria the loan amount will be transferred to your bank account.
Read More: Small Business Loans: Features, Eligibility, Documents, Steps to Apply
Summary
The most important part of starting a business is finding funding. In the absence of proper financing, a business seeks funding from a person or a financial institution. You can obtain loans from several different sources in the market. A borrower must provide the lender with the necessary documentation and collateral in order for them to evaluate creditworthiness and repayment capacity.
Securing a business loan from Bajaj Finserv is the most suitable option when seeking funding. This company offers a wide spectrum of business loans that are of high value and can be obtained easily with flexible repayment terms.
FAQ’s
Are business loans available to everyone?
Partnership firms, Self-employed individuals, Proprietors, Private Ltd. Co. Self-employed non-professionals, and Partnership firms may apply for a Bajaj Finserv Loan. For consideration, applicants must satisfy the loan requirements and submit their relevant documents.
As a requirement for a business loan, how high must be your CIBIL score?
A CIBIL score of 685 and higher is perceived to be a good credit score by Bajaj Finserv. It also reflects well on your profile to have a good turnover for your business and to ensure that all your documents are in order.
When determining eligibility for a loan, what factors are taken into account?
1) Credit scores are taken into consideration whilst approving a business loan application. A CIBIL score of 685 or above is perceived to be a good credit score by Bajaj Finserv.
2) Financial statements of the borrowing entity for the last two years. A loan amount depends on key parameters such as gross revenue, expenses, interest charges, and profitability.
3) A capability to service the EMIs for the current loan.
is preclosure allowed in business loans?
Some banks have lock-in periods between 6 months and a year. You must pay 4% pls taxes on your outstanding principal amount if you are foreclosing your term business loan with Bajaj Finserv. 4% plus taxes on the outstanding loan principal will be due if you have chosen the Flexi option for your loan.
How much turnover does a business need to qualify for a loan?
The business you own should be at least three years old. Additionally, you must have filed your income taxes for at least one year.
Is Bajaj Finserv the right loan provider for you?
1) Their unsecured Business Loan does not require any security or guarantee.
2) It is up to you to decide which repayment option is most suitable for you.
3) Occasionally, we extend exclusive pre-approval offers to their existing customers.
4) Your business loan information is easily accessible online.
5) Amounts up to Rs 25,00,000 are available for unsecured business loans.
6) Documentation requirements are minimal.
7) Upon meeting the eligibility criteria, your loan will be approved within 24 hours.
Do you have any specific steps to follow when applying for a business loan with Bajaj Finserv?
1) Click here to open the application page.
2) Verify your profile with the OTP sent to your phone number and enter the basic details
3) Share business details, as well as documents related to your business.
4) You will be contacted by a Bajaj Finserv representative for further assistance.
5) You will receive the funds within 24 hours upon approval of the application.
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