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How to get a business loan in Chennai : Upto 50 Lakhs @Low Interest Rate

Chennai, a metropolitan city, known for its huge population and diversified business opportunities, has a huge economic output of $78.6 billion. Chennai is a major economic player that includes automobile manufacturing and software services, the manufacturing of medical equipment, and financial services being the primary contributors to its massive economic growth.

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How to get a business loan in Chennai




Thinking of starting your own business or expansion of existing one? Chennai would be the best place to start and grow your business. Getting capital for your growing business is also easy and effective in Chennai. All you need is a good business idea with all the necessary documents. Many banks in Chennai are ready to support your business with their loans. Learn all the criteria to apply for a business loan in this guide and start or grow your business successfully.

 

Chennai: Business Opportunities & Landscape

 

Chennai, a metropolitan city, known for its huge population and diversified business opportunities, has a huge economic output of $78.6 billion. Chennai is a major economic player that includes automobile manufacturing and software services, the manufacturing of medical equipment, and financial services being the primary contributors to its massive economic growth. Chennai has deservedly ascribed the nickname “Detroit in India” because of the massive presence of manufacturing units for automobiles and associated industries.

 

Chennai comprises 30 per cent of the automotive industry and 40 per cent of the automobile components sector in India. Chennai has helped Tamil Nadu to join the elite list of the top 10 hubs for automobiles around the globe. Chennai is the second largest producer of software in India. Even though people graduate from many parts of Tamilnadu, they still choose to work in the heart of the state.

 

Chennai is also predicted as one of the cities that will grow the fastest around the globe from 2019-2035. Chennai’s population is currently 70.6 lakhs, which is predicted to increase steadily. So, the need for job opportunities would keep on increasing.

 

But the job market is not the same as before. A new entrepreneur is emerging every day. Nowadays, people are courageous to make new attempts and involve themselves in calculated risks to become successful businessmen.

 

As the business grows, the need to help these businesses has seen the demand for business loans in Chennai.

 

Why Do You Need a Business Loan?

 

A business loan is a type of financing that helps businesses with their cash flow. The loan will help a business meet its short-term financial needs.

 

Chennai is now becoming the biggest metropolitan city. This is because of the increasing number of entrepreneurs in Chennai. But still, many youngsters with a million ideas wander in the street without knowing the proper procedure to get a loan for their business and make it big.

 

Many IT staffs who go to their office every day with the dream of owning a business are stuck in their seats without proper investment for their business. These dreams can be achieved with the help of business loans offered by many banks in and around Chennai.

 

Due to strict lending procedures and requirements, many small businesses cannot get bank loans. A business loan is a viable alternative, especially for entrepreneurs who have great ideas and good potential for success. There are some banks that offer business loans in Chennai.

 

Business funding is important for entrepreneurs looking to start or expand their companies. Many options are available, and it’s always best to weigh all the pros and cons before deciding what’s right for you.

 

Reasons You Should Take a Business Loan in Chennai:

 



 

Though the business in Chennai is expanding every day, the customers and people who love small businesses are also increasing along with them. To make a business successful in Chennai is quite tougher as there is heavy competition. But if you strongly believe in your idea and strategy, your business will never become a failure among the Chennai crowd. But before starting any business, you must have the capital or financial support to start your business. The process of getting capital for a business is possible through business loans. Compared to other rural areas and suburban cities in Tamilnadu, it is easy to get a business loan in Chennai. Because there is a good number of banks found all over Chennai.

 

You can opt for business loans in Chennai for several other reasons like,

 

You would want to expand at staffing levels as the size of operations grows. Employing and educating talented individuals requires a large financial investment. You can consider applying for a business loan if you discover that you cannot pay for this expense at the same rate as your hire.

 

Before a strong demand season, businesses stockpile inventory to ensure supply keeps pace with demand. This necessitates making large-scale purchases of inventory quickly. A business loan may help you fill this gap while your revenues stabilise.

 

You can combine your debts into one Business Loan with a cheaper interest rate if you have many obligations with variable interest rates. The lower interest rate helps your finances; managing a single debt is simpler than managing several. Finally, a better-managed debt that is paid back on time raises your credit score.

 

Which Are The Best Business Loans in Chennai? Working Capital:

 

Working capital loans are used by businesses in Chennai to pay for ongoing costs and services related to business expansion, improve cash flow, purchase raw materials, increase stock or inventory, pay salaries, hire personnel, etc. Working capital loans frequently have short repayment terms of up to a year.

 

Term Loan:

 

A term loan follows a predetermined repayment schedule, if you want to get the loan, you should follow this method. Two types of term loans are available in the bank: short-term and long-term. You must repay your loan from 12 months to 5 years in these two varieties. Short-term loans have a tenure of no longer than one year, whereas long-term loans have a term of up to ten years. You can easily opt for this term loan if you want to expand your current business in Chennai.

 

Letter of Credit:

 

When a bank or other lending institution provides financial guarantees to enterprises engaged in international trade, a letter of credit is a type of credit limit that trading companies typically use. Credit Letters are tool business owners can utilise for import and export transactions.

 

Bill Discounting:

 

Bill or invoice discounting is a funding option where the lender gives the seller money up front at a reduced rate. This requires customers to contribute in the form of interest rate, the form of interest paid and the monthly fee to increase the revenue of the financial institutions.

 

Top 10 Banks/NBFCs in Chennai That Offer Business Loans:

 

Business loans can be one of your greatest options if you want to start a new business, grow a present enterprise, or purchase new equipment but don’t have enough money.

 

It is a fantastic approach to increasing funding for various business requirements. Small businesses and entrepreneurs can use business loans to help them with their capital requirements.

 

Few banks offer bigger loans without any collateral or pre-approved bids. The top 10 banks in Chennai that provide business loans are given below.

 

ICICI Bank:

 

ICICI is one of India’s largest private bank and an excellent choice for anyone looking for business loans. ICICI’s loan structure is set up in a way that makes it simple to choose the option that suits the needs of customers and their businesses.

 

Key Highlights:

  • Due to ICICI Bank’s excellent documentation policy, repayment is easy to

 

  • The working capital, term loans, or composite loan options are available under the ICICI business loan option.

 

  • They offer loans up to 2 crores.

 

  • The minimum loan amount is one lakh, and the maximum is Rs. 40

 

  • The maximum number of years you have to pay back the company loan is

 

  • They have dedicated relationship managers committed to providing complete financial

 

HDFC Bank:

 

HDFC Bank is one of the leading money leading banks in India, and they offer business loans up to Rs. 40 lakhs. They give appealing deals and loans to their customers in addition to an easy and rapid approval process.

 

Key highlights:

  • A loan balance transfer service is

 

  • After six EMIs have been paid, the loan may be

 

  • Their annual interest rate varied between 000% and 21.20%.

 

  • Offers a payback schedule of 12 to 48

 

  • 50,000 is the minimum loan

 

  • 5,000,000 maximum loan amount

 

  • One year is the bare minimum

 

  • Maximum Term: Four Years

 

State Bank of India:

 



 

With more than 24000 bank branches and more than 59000 ATMs spread out over the nation, SBI is one of India’s largest public sector bank. Their main motive for offering business loans in Chennai is to support all small businesses. SBI wants all small businesses to create their current and fixed assets.

 

Key highlights

  • This loan is easily available to self-employed people and start-ups.

 

  • A loan from an MSME can be as little as 10 lakh and as much as Rs. 52 lakh.

 

  • They require a minimum of 40% of the

 

  • You should have been in any business for at least five years to get the business

 

  • It would help if you displayed a balance with a minimum average monthly amount of I lakh

 

  • You will get a repayment time of 5 to 15 years

 

  • Small business loans from SBI are repaid over 60

 

Axis Bank:

 

Axis Bank is known for it’s convenient service and for providing loans at affordable interest rates. They provide business loans to professionals like engineers, surgeons, and CPAs so they can practice their trade, rent offices, or buy tools.

 

A cibil score should range from 300 to 900 to get business loans from Axis bank. Higher the cibil score easy chance of getting a loan. A high credit score may also result in reduced interest rates or a larger loan amount.

 

Key Highlights:

  • A minimum yearly turnover of 30 lakhs is required to qualify for a business loan from Axis Bank.

 

  • A minimum of 3 years of business management experience is required to get sanctioned for this loan.

 

  • The maximum payback term is 15

 

  • The company must operate as a partnership, sole proprietorship, LLP, Ltd.. You may be eligible for a loan in the range of Rs. 50000 to Rs. 50 lakhs.

 

  • The bank decides your interest rate based on your business profile, business size, financial evaluations, prior performance, and tenure.

 

  • To be eligible for a business loan, you must be between the ages of 21 and

 

Citi Bank:

 

Citi Bank is one of the best business loan providers in India and offers you a wide range of loans for your company’s operating capital. Given that they have a network in more than 100 countries, this loan is most appropriate for you if your business operations take place abroad. You should at least have a cibil score of 600 to get a business loan from Citi bank. You are highly qualified for the loan if you have more than 700 points.

 

Key Points:

  • A minimum loan amount of 1000000 and a maximum loan amount of Rs. 15000000 are available.

 

  • The tenure period is between 12 and 120

 

  • The best aspect is that you can apply for a loan with them in less than 48

 

  • No security or guarantor is

 

  • Prepayment charges are 4%.

 

  • Processing fee: 2% of the sanctioned loan amount

 

IDFC First Bank:

 

It is a top bank that provides loans for businesses, allowing you to buy equipment, improve your operations, or meet any other needs your company may have. However, you should be aware that if you obtain a loan from IDFC Bank, you will be required to repay it through a set number of equal monthly instalments. In addition, a cibil score of at least 750 is required for business loans, just like most other loans, and it’s one of the key ways to guarantee IDFC First Bank approval.

 

Key Highlights:

  • You can obtain a business loan from 1 lac to Rs. 9 lac through the Business Installment Loans program, which is open to businesses, professionals, and non-professionals.

 

  • You are not required to offer any security or collateral because it is an unsecured

 

  • The financing for your firm must be repaid in four

 

  • The nature of the business, ability to repay the loan and income are the only factors determining the loan amount at IDFC First Bank.

 

Kotak Bank:

 

Kotak Bank is the fourth-biggest private bank in India. Compared to the other banks on the list, it is a young institution. However, they have spread far and now have over 650 branches around the nation. You may rely on Kotak Bank to provide a business loan because they have affordable rates and open lending practices.

 

Key highlights

  • You are eligible for a loan ranging from $35,000 to $75,000

 

  • They offer flexible and straightforward methods for

 

  • The lender requires little documentation to process this

 

  • They give out unsecured business

 

  • The fact that they have special discounts for corporate and female workers is a

 

  • The loan is open to manufacturers, independent contractors, and service

 

Tata Capital:

 

Tata Capital offers specialised business loans at low-interest rates. This bank is another one of the best in India for business loans. Starting at Rs five lakhs, the maximum loan amount is Rs.. seventy five lakhs. The good news is that most of the loans they offer don’t demand collateral or security.

 

Key Highlights:

  • Different Loan Programs

 

  • Tata Capital’s business loans provide interest rates starting at 19%, with repayment terms ranging from 12 to 36

 

  • Easy Loan Disbursement

 

  • They require a licensed CA to audit the balance sheet to qualify for a business

 

  • Modular EMIs

 

  • If you have a cibil score of 700 or more, getting the loan is

 

  • No security is required to obtain this

 

Indusland Bank:

 

This bank is a one-stop solution for all your banking and loan needs. With IndusInd Bank, you can get the lowest interest rates in addition to privacy and openness in their business practices.

 

Key highlights

  • Continuous customer service

 

  • You can borrow up to 1,500,000 for any business need.

 

  • They provide tailored loan estimates based on various business

 

  • Flexible payment plans are available, ranging from 12 to 60

 

  • Minimal interest rate

 

  • Rapid loan disbursement

 

Standard Chartered Bank:

 

Standard Chartered bank is famous since loan applications are processed quickly, making it the best choice for newcomers. You should choose this bank if you need a business loan because it is the ideal combination of in-depth local competence and worldwide understanding.

 

Key highlights

  • You have up to 36 months to take out a business installment

 

  • To obtain this loan, no security or collateral is

 

  • The term is three to five

 

  • You may be eligible for a loan if you require money for operating capital or business

 

  • 30% to 50% of the loan amount is used as cash After the loan’s initial year of repayment, you can prepay it.

 

Conditions for Loan Eligibility:

 

Chennai’s business acumen and entrepreneurial energy is something that is appealing to many lenders. Companies require a customised business with customised growth strategies. There are many criteria a person or firm should complete to get a business loan in Chennai. Getting a business may be easier in Chennai with all the requirements completed.

 

Owners and self-employed people or individuals who are involved in partnerships and private limited companies as well as companies engaged in manufacturing or trading services in Chennai

 

  • You should possess at least five years of business knowledge

 

  • Individuals who have a minimum age of age 22 before the date of applying for the loan, and up to 65 years as of the date of the maturity of the loan

 

  • Businesses need to have a turnover that is 10 Lakhs.

 

  • Companies that have made profits within the past two years

 

  • Businesses must earn at least 2 lakhs annually

 

  • Self-employed professionals include chartered accountants, company secretaries, architects, and architects. allopathic physicians

 

  • Self-employed non-professionals, such as proprietors, retail stores service providers, traders, and even manufacturers

 

  • Any entity such as a private sole proprietorship, limited company or limited liability partnership, or limited liability company is qualified to receive a business loan

 

Documents needed to apply for a Business Loan:

 

The required documentation is minimal and hassle-free to obtain an unsecured business loan in Chennai. A list of the documents required to obtain a business loan in Chennai is mentioned there.

  • Identity proof and PAN card for a firm, a company, or an individual

 

  • Documents prove residence, like Voter ID cards, Ration Card passports, and Driving

 

  • Documents for income, including the most recent income Tax returns, the income statement, the profit and loss account, and the balance sheet from the two most recent

 

  • Documents that prove continuation, such as Income Tax Returns or Trade Licence Establishment, Sales Tax Certificate

 

  • Other documents might include a declaration of Sole Proprietorship or a certified copy Partnership deed, the official copies of the Memorandum, the Articles of Association, and the Board Resolution.

 

The list above isn’t complete. Documents required is also differs form bank to bank. It will also depend on your financial situation, the risk assessment conducted by the bank, and the loan you are seeking.

 

What is the Process for applying for a Business Loan in Chennai?

 

Getting a business loan is easy and simple if you follow the procedures properly.

 

The first step is understanding the bank’s requirements and then filling in the application form accordingly.

 

There are many banks that give you business loans in Chennai, and they might have different requirements. Hence, you should research these aspects quickly to get a small business loan in Chennai.

 

Apply Online

  • Click the Apply Now button on any bank website offering a business

 

  • Then you will lead to a webpage

 

  • Enter the amount of your loan you require and the duration you would like a loan for in the

 

  • You’ll receive immediate confirmation or approval based on the details you

 

  • You’ll receive an ID number, and a Bank representative will reach out to you as the first

 

  • The application process will go through several verification steps in which the information provided will be checked against the documents submitted as proof or evidence

 

  • Once the loan verification process is completed, you will receive a personalised loan

 

To know more details on  Business loans from Chennai ,  You can email contact@startupyo.com or call at  +918886666821.

 



Faq's

A minimum annual income (ITR) for the company should be Rs. 1.5 lakhs. When applying for a loan, the applicant must be at least 21 years old, and when the loan matures, they cannot be older than 65.

  • Not every business is
  • Loans with Collateral as
  • The application process is
  • High Rates of
  • Strict Repayment
  • Processing

Every company’s requirements and procedures would be different. But business loans have no standard deposit amount. Most lenders need a deposit of 10 to 30.0 per cent of the business loan amount. Savings, working capital, unconventional financial instruments, or outside investments are all possible funding sources.

A business loan offers the essential funding that business owners need for daily operations, working capital, equipment or inventory purchases, and paying off existing debts. Annual percentage rates (APRs), loan amounts, and terms for business loans vary, and these factors together provide a range of monthly payments.

MSME loans are a type of unsecured loan provided by several financial institutions to assist business owners in covering a range of connected costs. According to the RBI and the Indian government, these loans are only available to certain commercial enterprises: (Manufacturing or service provider).

There are a lot of benefits to taking short-term financing. You can immediately borrow a modest sum of money, and you can repay it within a short period. Compared to a larger, long-term loan with more time for interest to accrue, the total interest paid will often be significantly less overall.

  • Business Commercial loans are the most reliable kind of funding for your company.
  • Venture funding It provides entrepreneurs with an additional source of
  • Credit in These are the sources of self-generation that rely on short-term funding.
  • Credit in
  • Family and

There are two primary types of external finance: equity financing, which is money provided in exchange for a portion of ownership and potential future earnings, and debt financing, which is cash that must be repaid, typically with interest.

Conventional lenders, friends and family, Small Business Administration loans, technology-based loan providers, microlenders, home equity loans, and personal credit cards are a few sources of debt financing.

Starting at 7.65% annually, MSME loans have interest rates. The sanctioned loan amount starts at Rs. 50,000 and can reach many crores. The loan repayment period may last up to 15 years, depending on the loan amount that has been approved.