Types of Business Loans in India – Simple Guide for Growing Businesses
Launching or operating a small business requires much more than a great concept. A suitable team, a well-defined strategy, and, crucially, prompt financial backing are all essential.
Many businesses across India could grow more rapidly but face challenges due to insufficient working capital. If you need funds to purchase inventory, pay staff, or scale your activities, securing the appropriate types of business loans can be extremely beneficial.
However, here’s a challenge: the numerous loan options available can be overwhelming.
At NKB Kredit, we don’t just provide financing; we assist you in determining the best fit for your situation. With over 25+ years in the financial sector, our CEO, Mr. Naresh Bansal (CA), personally examines each application to help companies find the ideal loan solution based on their individual requirements and operational context.
Let’s explore the most frequently used types of business loans in India and their potential benefits.
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Types of Business Loans Available
1. Unsecured Business Loan (Up to ₹5 Cr)
This loan suits you if you don’t have property to offer as security. You can still obtain funds based on your business credentials. It’s great for urgent working capital requirements.
Business loan
Business Loan
Instant Business Loan
Business loan Interest Rate
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2. Loan Against Property (Up to 200% of Property Value as wC)
If you own a house, shop, or commercial property, you can get funding based on its value. This type offers substantial amounts with typically lower interest rates.
3. Vendor Financing
Stuck waiting on customer payments? Don’t let it be a barrier. Vendor financing helps you convert unpaid invoices into instant funds.
Business loan type
MSME Loan
SME Loan
Small Business Loan
Business Loan for Women
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4. Loan on plot purchase
Intending to buy land for business growth, a warehouse, or a factory? This loan assists you in your land acquisition.
5. Loan Against Shares (Up to ₹20 Cr as working capital)
Do you or your business possess shares or mutual funds? You can leverage these assets to secure working capital, without selling them.
Business Loan by City
Business loan in Delhi NCR
Business loan in Mumbai
Business loan in Kolkata
Business loan in Ahmedabad
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6. Builder Floor Loan
This loan option is tailored for builders and developers involved in commercial or residential projects, who need financing during the build process.
7. Equity Funding via SME IPO
Looking to get funds without the burden of monthly payments? List your business on the SME IPO platform and secure equity capital straight from investors.
Note: This overview covers seven essential types of business loans you can consider to fund and grow your venture.
Business Loan by Industry
Startup business loan
Retail business loan
Construction business loan
MSME loan schemes
Manufacturing loan India
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Why Do SMEs Need Funding?
Regardless of an owner’s enthusiasm or skill, it’s challenging to move forward without sufficient funds.
Here’s why companies typically seek loans:
- To handle daily expenses (working capital)To acquire inventory or raw materials
- To enlarge their office, store, or factory
- To employ more staff or cover salaries
- To invest in new equipment or technology
Timely funding can alleviate stress, improve operations, and provide room for expansion.
Who qualifies for these types of business loans?
These types of business loans are available to:
- Small and medium-sized businesses (SMEs)
- Traders and service providers
- Businesses with 2+ years of operations.
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If you have an established business, we can suggest the best funding solution for you.
Book a Free Consultation
Unsure which loan is right for you? No worries. Simply fill out our short contact form with some basic details about your business. Our team will contact you to give you step-by-step guidance.
Conclusion
Every business faces a unique situation – and has unique needs. The main thing is to choose a loan that helps your goals, rather than hinders you. With the right advice and funding partner, growth becomes simpler and more predictable.
Note : You can also message our CEO, Mr. Naresh Bansal, directly via WhatsApp for real advice at a shortest possible time frame.
At NKB Kredit, we’re here to help you move forward – confidently.