- Business Loan in Kanpur
- Why do you need a business loan?
- Reasons you should take a business loan in Kanpur
- Which are the best business loans in Kanpur?
- Types of Loans
- Top 5 Banks/NBFCs Offering Business Loans in Kanpur
- HDFC Bank
- Axis Bank
- IndusInd Bank
- South Indian Bank
- Standard Chartered Bank
- Conditions for loan eligibility
- Documents required for a business loan
- Process to apply
Business Loan in Kanpur
Kanpur: Business Opportunity & Landscape
The desi town with modern amenities is Kanpur, situated on the riverbank of the holy Ganges. Although Pan masala memes based on Kanpur rule the Internet these days Kanpur has a lot to offer as it is a large industrial city. It’s known as “The Manchester of East” and is home to many textile and leather factories. Moreover, Kanpur has become a popular destination for aspiring entrepreneurs.
A sprawling city in one of the country’s biggest states – Uttar Pradesh – Kanpur is an important financial, commercial, and industrial center. The city is known for its famous leather and apparel products, which it regularly exports to other countries. As a result, Kanpur is widely referred to as the ‘leather city.’ Kanpur is one of the crucial business hubs of North India.
The city that once housed—and still does—the renowned “Lal Imli” woolen factory, numerous cotton mills, ICI Limited (now known as Duncuns Fertilizers), RSPL, LML, Pan Parag, and one of the biggest leather businesses in the world.
One of the city’s most prominent defense facilities is located, including Hindustan Aeronautics Limited (HAL), DMSRDE, the Small Arms Factory (SAF), the Field Gun Factory, and the Parachute Factory.
A solid commercial hub and excellent infrastructure, Kanpur is becoming a famous city for entrepreneurs. The high number of colleges & universities in the area makes it easy for startups to hire skilled labor, available in huge supply.
Moreover, due to its geographic location, Kanpur is a hub of many banks and NBFCs that offer business loans. And if you, too, are looking for a business loan in Kanpur, don’t worry!
This article will guide you to the best commercial credit options in Kanpur. Ready to get a business loan offer?
Why do you need a business loan?
Starting a new company is challenging for some people. Applying for a business loan is one of the first steps in the process. These days, small business loans have become quite common and are often seen as the first step in starting a new business.
The business loan is the most popular type of financing in the current business climate. These loans are easy to acquire and come with various benefits that make them the best option for most businesses, such as flexible repayment options, low-interest rates, and much more.
Choosing the best loan for your business can be tricky, given the variety available. Therefore, you must seek the expert advice of a financial advisor to help determine how much capital you need, what kind of loan option will be the most beneficial for your company, and what interest rate would be appropriate for your situation.
This article will explore the different types of loans available to businesses so you can decide which type is best suited for your needs.
Reasons you should take a business loan in Kanpur
There are plenty of reasons why Kanpur is a great place to do business.
- The city boasts a sizable, well-educated, and wealthy population. This ensures that many potential clients are eager to purchase your products and services.
- There are numerous options to launch a business in Kanpur. A clothing fashion company is a fantastic place to start. Fashionable clothes are in huge demand in the city because so many people require them.
- The demand for hardware and software is on the rise. There are huge possibilities if you want to launch a business in this sector. Start by looking for businesses that sell these things or launch your enterprise.
- Kanpur is a cluster of major businesses like cotton hosiery, readymade garments, medical equipment, paint and allied industries, leather products, steel, and pharmaceuticals. Panki, Jajmau, Mandhana, Uptron Industrial Estate, etc., are some of the dedicated industrial areas of Kanpur.
Which are the best business loans in Kanpur?
The article provides a quick overview of the various types of loans most common among business owners in Kanpur. It is followed by a long list of top banks in the city, their contact information, and links to their websites.
There are varieties of business loans available to entrepreneurs. The loan would depend on certain factors, such as credit score, loan amount, and the duration of the loan. In addition, it depends on your financial goals.
Types of Loans
Term Loans: Term loans are for a limited period, have a fixed interest rate, and must be repaid over the loan repayment period.
Equity Loans: These loans use a company’s share as collateral. Interest rates depend on the market. However, they are generally significantly lower than other types of loans because there is less risk to the lender.
Debt Consolidation Loan: This Personal Loan is used to pay off all your outstanding debts, including credit cards and other personal debt, in one monthly payment at a lower interest rate than before.
Top 5 Banks/NBFCs Offering Business Loans in Kanpur
HDFC offers special credits for businesses to strengthen against the pandemic with tailored interest rates to enable firms to operate with less financial stress. With the commercial Loans offered, you can get up to Rs. 75 lakhs.
Major Highlights :
Loan Eligibility: The customer must meet the current policy constraints for the Business Loan.
Loan Amount: About 75 Lakhs for MSME and SME.
Loan Tenure: Up to 72 months for Doctors and 48 months for self-employers.
Read More: How to Get Business Loan in HDFC Bank?
Liquidity is crucial to running any business for any manufacturer, retailer, trader, or business owner. However, meeting expanding business requirements also doesn’t come automatically. The bank enables collateral-free secured credits with easy EMI-based repayment options.
- A business vintage should last at least 3 years.
- 30 lakhs is the minimum turnover amount.
- When applying for a business loan, the candidate should be 21 years old, and the maximum age must not exceed 65.
- Office/Residence Stability
- You should own commercial or residential property.
- If moving into an owned home, the requirement for resident stability in rental housing cases is for at least 12 months.
IndusInd Bank offers business Instalment Loans, unsecured loans based on three years of audited financials and business experience; IndusInd, which recognizes innovation and entrepreneurship, creates financing alternatives to assist businesses in development.
Major Highlights :
Minimum Turnover: Rs.1 crore in the most recent fiscal year and 3 years’ worth of audited financials.
- Positive PBDT in the last 3 years for profitability.
- A payment Capital: >= 10 lakhs rupees
- 25 to 70 years of age (for 2nd generation business people age 21 years)
- Business vintage: at least three years
- Past Payment History: A minimum 4-lakh loan with 12-month clean payment history.
- Ownership: A piece of property must be owned.
South Indian Bank
One of the top private sector banks is South Indian Bank. The bank offers a variety of financial products, such as company loans, commercial vehicles and equipment loans, working capital financing, long-term financing, non-fund-based financing, supply chain financing, and domestic financing.
Major Highlights :
- Rate of Interest: 12.55% to 16.55% per annum.
- Age requirements: minimum age of 21 and maximum age of 65
- Loan Amount: Rs. 5 lakh minimum and Rs. 50 lakh maximum
- The processing fee is equal to 2% of the loan balance.
- Minimum credit/CIBIL score of 650
Standard Chartered Bank
Increase your firm’s reach with a collateral-free business loan. You can get one with a maximum value of INR 1 crore and a term of up to 4 years and get credit evaluations based on GST statements completed promptly. Utilize the top-up facility based on your past success with loans.
Major Highlights :
Those that qualify for a business installment loan include:
- Partnership business (Including Limited Liability Partnership firms)
- Businesses that are sole proprietorships
- Minimum of three years in operation
- A firm must have a minimum yearly revenue of INR 100 lakhs.
Conditions for loan eligibility
- The applicant must be an Indian citizen. The applicant shall be an individual, business, partnership firm, or limited liability partnership.
- The applicant should not owe any financial institutions any unpaid balances.
- The candidate should not owe any money to any government organization.
- The court of law erred in declaring the applicant bankrupt.
- The borrower must be at least 18 years of age.
- The borrower’s monthly wage income must be at least Rs 20,000.
- A Cibil Score of greater than 685 is required.
Documents required for a business loan
The necessary documents needed to submit a business credit application include:
- The form should be properly filled in and attached with the photographs and documents.
- Government-issued photo id proofs and Utility bills are required for KYC.
- Business Address Evidence
- Business Establishment Certificate
- The last 6 months’ bank statement
- If applicable, proof of being in the SC/ST or OBC category.
- The bank needs other paperwork.
Process to apply
The online application process is accessible 24 hours a day, 7 days a week, and you can get an answer in minutes.
- You will need to provide your personal information.
- Banking and credit history information, and
- Other documents show your income and credit history.
Several factors contribute to the time it takes for a loan application to be approved, such as whether you apply for the loan in person or online. Generally speaking, although the process can take up to 2 months if you apply by phone or in person, the process usually takes about 2 weeks when applying online.
To know more details on SME loans from Kanpur. You can email [email protected] or call +918886666821.
What will happen if I cannot repay my business loan?
It will firstly impact both applicant and the guarantor’s CIBIL score, which will lead to the rejection of your future loans. In addition, non-payment of two consecutive EMIs will put you on the defaulter list, and in extreme cases, the lender can sell your assets too.
What is the use of a business loan?
A business loan can give you access to capital expenditure, growth, and acquiring new commercial assets.
How does a commercial loan affect taxation?
Any interest charged on a loan for a business is not subject to taxation. In addition, you may be eligible for business loan tax benefits on excise and costs if you register as an MSME. The principle sum, however, is not tax deductible.
How can loan planning be made easier with the EMI calculator?
The amortization schedule is accessible through the EMI calculator, showing the interest due and EMI amount. Finding cost-effective repayment solutions requires this knowledge, which can aid in decision-making.
Why would a company need a commercial loan?
A business loan is a type of financial aid offered by banks and NBFCs to help a company get the money it needs to expand or pay its bills.
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