India is seeing big changes in its business world, thanks to new and creative startups. These startups are helping the country's economy grow. Today, India has the third-largest startup ecosystem in the world, with more than 75,000 registered startups. Check your business loan eligibility to understand how you can access the right financial support for your startup.
But to keep running and growing, these startups need regular funding. Like any other business, startups need a lot of money for different things like daily operations, advertising, marketing, making products, buying other businesses, or expanding.
That’s why many business owners look for the right startup business loan to meet their financial needs. These loans help entrepreneurs get quick money to manage their startup costs.
What is a startup business loan?
A startup business loan is a financing option tailored for new ventures aiming to establish and scale their operations. Unlike traditional business loans, these are structured to meet the distinct needs of early-stage companies, which may still be unprofitable or in development. The funds can be used for a range of purposes, including equipment purchase, working capital, marketing, or other initial setup expenses.
Features and benefits of a start-up business loan
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Easy documentation
You only need to submit a few basic documents to our representative, who will reach your doorstep.
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Quick loan approval
Get quick approval within 24 hours* after meeting the eligibility criteria. Use the loan amount to meet immediate financing needs.
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Collateral-free financing
Avail of a high-value loan amount without pledging any assets with us.
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Easy repayments
We provide convenient and affordable repayments with a tenure ranging up to 96 months.
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Lower your EMIs.
Choose our Flexi facility and lower your EMIs by up to 45%*.
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Attractive rates
Get attractive business loan interest rates and enjoy affordable repayments.
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Online account access
You can manage your loan account with our dedicated online customer portal – My Account.
*Terms and conditions apply.
Check your pre-approved business loan offer to explore convenient loan options tailored for your startup.
Types of startup business loans
Term Loans: These provide a specific amount of capital for a fixed period, repaid with interest in regular instalments.
Short-Term Loans: Repayable within 1 year, often used for immediate operational needs like salaries or inventory.
Long-Term Loans: Repayable over several years, suitable for larger investments like machinery or expansion.
Working Capital Loans: Designed to cover daily operational expenses and maintain smooth cash flow.
Equipment Financing: Enables the purchase or upgrade of essential machinery, with the equipment often serving as collateral.
Overdraft Facility: Allows businesses to withdraw funds up to a predetermined limit, only paying interest on the amount used,
Loans under Government Schemes: Various government initiatives offer favourable terms and support for startups, such as lower interest rates and collateral-free options.
Key government business loan schemes for startup business
These schemes offer financial support to help startups and small businesses access timely credit for growth and development.
Pradhan Mantri Mudra Yojana (PMMY): Offers loans up to Rs. 10 lakh to micro and small businesses under three categories, Shishu (up to Rs. 50,000), Kishor (Rs. 50,001 to Rs. 5 lakh), and Tarun (Rs. 5 lakh to Rs. 10 lakh).
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Provides collateral-free loans up to Rs. 2 crore for eligible MSMEs with guarantee coverage to lenders in case of default.
Stand-Up India: Supports SC/ST and women entrepreneurs with loans ranging from Rs. 10 lakh to Rs. 1 crore to establish new businesses in manufacturing, services, or trading.
Startup India Seed Fund Scheme (SISFS): Offers funding support for proof of concept, prototype development, and market entry with grants up to Rs. 20 lakh and equity support up to Rs. 50 lakh.
SIDBI Make in India Soft Loan Fund for MSMEs (SMILE): Provides concessional loans from Rs. 10 lakh to Rs. 1 crore to boost the growth of MSMEs under the ‘Make in India’ initiative.
National Small Industries Corporation (NSIC) Subsidy Schemes: Assists MSMEs by offering subsidies and schemes to enhance competitiveness, including marketing, technology, and skill development support.
Bank Credit Facilitation Scheme (NSIC): Helps MSMEs access credit through tie-ups with public and private sector banks, streamlining the loan process.
PSB Loans in 59 Minutes: An online portal that enables MSMEs to apply for business loans and get in-principle approval within 59 minutes, with funding up to Rs. 5 crore.
Eligibility criteria for startup business loan
To help fund the financial requirements of start-up businesses, Bajaj Finance offers credits against simple eligibility criteria. Find them below:
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Business vintage
At least 3 years
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CIBIL Score
685 or above
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Age
24 to 80 years*
(*age should be 80 years at loan maturity).
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Nationality
Indian resident
Documents required for startup business loan
The following documents are required to get instant startup business loans.
- KYC documents
- Proof of business ownership
- Other financial documents
Startup Business Interest Rates and Charges
Start-up business loan comes with nominal interest rates and no hidden charges. To view the list of the fees applicable on this loan, click here.
Type of fee |
Applicable charges |
Rate of interest |
14% to 25% per annum |
Processing fees |
Up to 4.72% of the loan amount (inclusive of applicable taxes) |
Bounce charges |
Rs. 1,500 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
Flexi Facility Charge |
Term Loan - Not applicable |
Penal charge |
Delay in payment of instalment(s) shall attract Penal Charge of Rs. 40 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
Prepayment charges |
Full Pre-payment Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment. Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment. Not applicable for Flexi Term Loan (Flexi Dropline) and Hybrid Flexi. |
Stamp duty |
Payable as per state laws and deducted upfront from loan amount |
Annual maintenance charges |
Term Loan: Not applicable Flexi Term Loan (Flexi Dropline): Up to 0.413% (Inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges. Flexi Hybrid Loan: Up to 1.18% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Initial loan tenure. Up to 0.413% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Subsequent loan tenure. |
Legal and incidental charges |
Recovery of charges |
Principal Holiday Facility Fees |
Principal Holiday (as applicable below) - (Inclusive of applicable taxes) Up to Rs. 6499 (Inclusive of applicable taxes) for loan amount less than Rs. 10,00,000. Up to Rs. 8,999 (Inclusive of applicable taxes) for loan amount between Rs. 10,00,000 and 14,99,999. Up to Rs. 13,999 (Inclusive of applicable taxes) for loan amount between Rs. 15,00,000 and Rs. 24,99,999. Up to Rs. 16,999 (Inclusive of applicable taxes) for loan amount Rs. 25,00,000 and above. Note- The above principal holiday facility fees will be deducted upfront from loan amount. Loan amount includes approved loan amount, Insurance Premium and VAS Charges. |
How to apply for business startup loan
- Click on the ‘APPLY’ button on this page.
- Enter your 10-digit mobile number and the OTP you receive.
- Fill in the form with your basic details – full name, PAN, date of birth, and PIN code.
- After entering your details, click on ‘PROCEED’ to go to the loan selection page.
- Enter the loan amount you need. Choose one of our three business loan options – Term Loan, Flexi Term Loan, or Flexi Hybrid Loan.
- Select how long you want to repay the loan – from 12 to 96 months – and click ‘PROCEED’.
- Complete your KYC process and submit your business loan application.
- Our team will contact you to guide you through the next steps. Once your documents are verified, the loan amount will be sent to your bank account.
Things to consider when applying for a startup business loan
Business plan: A detailed business plan showcasing your startup’s goals, revenue model, and market opportunity helps establish its viability and vision.
Financial statements: Lenders evaluate your projected financials and, where applicable, past performance to gauge repayment capacity.
Credit score: Both your personal and business credit scores can influence loan approval, especially for early-stage startups with limited credit history.
Legal documents: Be prepared with relevant legal paperwork such as business registration certificates, partnership deeds, or incorporation documents.
Eligibility criteria: Each loan scheme has distinct qualifying parameters, so review them carefully to ensure your startup meets the requirements.
Frequently asked questions
Apart from the interest rate, the other applicable charges and fees for a start-up loan are:
- Broken period interest
- Processing fee
Yes, CIBIL Score is an important eligibility criterion for business loan. For Bajaj Finserv Business Loan you must have a CIBIL Score of 685 or higher.
You can simply look at the eligibility criteria and then determine your eligibility. Otherwise, opt for an easier method and use an online eligibility calculator to get quick and accurate results.
The difficulty or ease to avail of a start-up loan depends on the business itself. There are several factors that lenders consider before approving a loan application. Borrowers must maintain a good credit score and meet/ exceed the eligibility to avail of a high-value loan amount with ease.
Yes, it is mandatory to have a business plan before you avail of a loan. A start-up business loan comes with simple eligibility criteria and minimal documents. With Bajaj Finance, you can get collateral-free funds up to Rs. 80 lakh* (*inclusive of Insurance premium, VAS charges, documentation charges, Flexi fees, and processing fees) once you meet the following eligibility parameters:
- You must be between 24 to 80 years* (*age should be 80 years at the time of loan maturity).
- You must have a minimum business vintage of 3 years.
- You must have a CIBIL Score of 685 or higher.
*Term and conditions apply.
If you are applying for a start-up business loan, your business must have a minimum vintage of 3 years. You also need to meet a few other eligibility parameters and submit the required documents to get a loan of up to Rs. 80 lakh* from Bajaj Finance.
*Inclusive of Insurance premium, VAS charges, documentation charges, Flexi fees, and processing fees).
