How to get a startup Business Loan?

Startup Business Loan

  • The company should have a detailed and persuasive business plan
    A private limited company or a limited liability partnership must be formed
    The company’s overall turnover will not exceed Rs. 25 crore
  • The Department of Industrial Policy and Promotion ( DIPP) will provide the business with approval.
  • The company must obtain copyright from the Indian Patent and Marks Office
  • The client will have an incubation letter of recommendation
  • Forms of business start-up loans

Startup Business loan forms

Yojana MUDRA

Mudra is the most famous scheme among India ‘s youth. The loan scheme of the Micro Unit Development and Refinance Agency (MUDRA) is a government-initiated loan scheme categorized as Shishu, Kishor and Tarun. The Shishu scheme allows applicants interested in receiving a loan of up to Rs. 50,000, whereas the Kishore scheme range from Rs . 5 lakh to Rs. 10 lakh. It will be Rs. 10 lakh if Mudra’s Tarun loan scheme is determined by the borrower.


The Micro and Small Enterprises Loan Guarantee Funds Trust (CGTMSE) is yet another government program providing MSMEs with funding through financial institutions including banks and NBFCs. Under this program, businessmen and startups became successful for the first time. The loan offered by CGTMSE is free of charge.

Financing of supplies

Under this form of financing, the material purchased at the company’s start-up is held as collateral with the bank so that the lender can charge a comparatively low interest rate at a slightly higher risk. The borrower must repay the loan sum used to buy the equipment as proceeds from its company. The main advantage of the equipment finance loan is that the equipment depreciation can be used by the borrower for years as a tax gain.

Startup Business Loan Eligibility Criteria

The eligibility criteria for startup company loans may vary from lender to lender but the generic criteria are as follows:

The applicant’s age should not be less than 21 years, and the average age should not be more than 65 years.

The applicant must be an Indian citizen.

Applicants are expected to have a business plan.

How can I apply for a business startup loan?

Simple, fast, and hassle-free application for start-up business loans. Many financial institutions and banks have allowed applicants to apply online. All they need to do is visit the lenders’ official website, fill in the given form and upload some documents. There is also an opportunity to visit the nearest lender branch and apply the application form and documents physically. The borrowers obtain the loan amount directly into the bank accounts after the documentation and the verification have been completed.

Characteristics and benefits of a business startup loan

There must be no collateral or security to make use of a startup business loan.

Business start-up loans include easy and flexible repayment tenures.

The documentation needed for a start-up loan is minimal.

The funds are immediately disbursed to the bank account of the applicant.

Documents Required to get Startup Business Loan

Photographs 2 copies passport size photo
Proof of Identity PAN Card, Passport, Aadhaar Card, Voter’s ID, Driving License
Address Proof Passport, Driving License, Aadhaar Card, Postpaid Phone Bill, Voter’s ID
Age Proof Passport, PAN Card
Bank Statements Last six months
Proof of Income Income Tax Returns, Salary Slips,
Signature Proof Bank verified signature, PAN Card, Passport
IFSC Code Proof Cancelled/scanned cheque, copy of passbook’s front page of the same bank account

Leave a Reply

Need Help? Chat with us