After the announcement of the start-up India campaign in 2015, small and medium business start-ups are sprouting up in the country. According to the Delhi government report, Delhi-NCR is one of the top five global startup hubs. Delhi has more than 12,000 start-ups fuelling the economic development of the capital. Entrepreneurs, Professionals, and business owners can take Business loans in Delhi. 

In this article, we will explain to you the process and documents required to get a business loan in Delhi.

Business Loans in Delhi By The Indian Government

The government of India has launched start-up business loan schemes. Apart from that Small Industries Development Bank of India (SIDBI) is also lending business loans in Delhi through banks. Some start-up loan schemes are the following:-

MUDRA Loan scheme

Micro Units Development and Refinance Agency (MUDRA) have been set up to provide loans to all kinds of start-ups. Under this scheme, loans can be availed in three categories. It includes Shishu, Kishore, and Tarun where amounts range between Rs. 50,000 to Rs. 10 Lakh. MUDRA loans can be availed by artisans, repair shops, machine service providers, etc.

CGS scheme

Startups involved in manufacturing and services can take advantage of the credit guarantee scheme. It can borrow up to Rs. 2 crores for business requirements. However, educational institutions, retail trade, and agriculture are not eligible for this scheme. Both new and existing startups and get the benefit of the CGS scheme.

Standup India

SIDBI offers business loans in Delhi to startups in manufacturing, trading, or services. Startups can avail loan of Rs. 10 lakhs to Rs. 1 crore under this scheme. The repayment tenure is of 7 years with a moratorium period of 18 months. 

Business instalment loan

Many major banks like Standard Chartered and ICICI offer business instalment loans. Startups requiring quick credit can apply to these banks. It comes under a personal loan. It is an unsecured loan but can be secured under lower interest rates. 

NBFC business loan

Major Non-banking financial cooperation like Bajaj finserv, Tata Capital, Ziploan, Lendingkart, etc., can provide instant business loans through apps in India. NBFC’s provide hassle-free loans with quick disbursement policies. 

How to apply for a business loan?

Follow these steps to apply for a business loan in Delhi:-

• Research the various loans available and choose the right one which fits your requirements. 
• Visit the lender’s website or instant loan app and fill the online application form.
• Upload the required documents.
• Visit the nearest branch of the bank or NBFC to submit the loan application and documents.
• The further process will be explained by the lender on receiving all the documents.

Documents Required

• Identity proof
• Address proof
• Age proof 
• Bank statement- last six months
• Income tax returns/ Salary slips

Benefits of start-up business loan

• Start-up business loans are collateral-free
• Flexible repayment options
• Documentation is minimum
• Quick disbursement of funds

FAQs

• What are the types of start-up business loans?

There are two types of start-up business loan- term loan and working capital loan. Term loans can be taken for up to 10 years and working capital loans are short term and have to be repaid in one year.

• How much loan I can get as a start-up business loan?

The loan amount depends on the lender and your credit history. Under MUDRA loan a startup can get up to Rs. 10 lakhs.

• What can increase my chance of getting a start-up business loan?

A well-crafted business plan and detailed strategy can increase your chances of getting a business loan.

• Which banks provide start-up business loans?

Banks like HDFC, ICICI, Tata Capital, Kotak Mahindra, etc., provide start-up business loans.