Mumbai is also known as the finance capital of India. The city provides a host of business opportunities for entrepreneurs and small business owners across various domains. Mumbai is home to many business owners, and small businesses are cropping up by the day. Taking this into account, lending institutions are offering unsecured Business Loans in Mumbai.
If you are a small business owner, you can avail of online SME loans in Mumbai. Micro, small, and medium enterprises (MSMEs) are gradually becoming a significant part of the Indian economy. Hence, the availability of Business Loans for MSMEs and SMEs has increased considerably.
Unsecured Business Loans can be used for various business-related purposes. You can use an online SME loan to:
- Buy new machinery or equipment
- Improve product quality
- Maintain inventory
- Infuse working capital
- Hire staff
- Expand product portfolio
- Build storage and warehouse
Business Loan eligibility criteria
| Criteria | Requirement |
| Age | The borrower should be of 24 years or above at the time of application and should not be more than 65 years old at the time of loan maturity. |
| Business vintage | The borrower must have a business vintage of at least 2 years. |
| Annual turnover | The borrower must have a minimum annual turnover of ₹6 Lakh. |
Documents required for Business Loans and online SME Loans
| Documents | Requirement |
| KYC documents | PAN card of the Company, Director, Proprietor, and Partners, Aadhaar card/ PassportDirector/Partner/Proprietor PAN Card, Aadhaar Card, Utility bills/ Rent agreement |
| Personal documents | All individual/ Partner/ Director- PAN Card and officially valid documents + Address proof |
| Business documents | Business registration proof and business address proof |
| Business address proof | Utility bills/ rent agreement |
| Financial documents | 6 months’ bank account statement |
Applying for unsecured Business Loans in Mumbai
You can apply for unsecured Business Loans in Mumbai online. To offer convenience and a hassle-free experience to borrowers, lending institutions and Non-Banking Financial Companies (NBFCs) are offering online applications for Business Loans.
To apply for an online SME loan, follow the steps mentioned below:
Step 1: Visit your lender’s official website.
Step 2: Go to the dedicated page for Business Loans
Step 3: Click on ‘Apply Now’.
Step 4: Fill out the online application.
Step 5: Await verification and confirmation.
Step 6: Get funds disbursed into your account.
If you have a high bureau score, it will help you secure a Business Loan faster in Mumbai. In the case of online SME loans, your business bureau score will be taken into consideration. Your credit score, or bureau score, is represented by a three-digit number that ranges between 300 and 900. This number is assigned to you by credit bureaus such as TransUnion CIBIL, Equifax, and Experian. Your business credit score is calculated on the following factors:
| On-time payment history |
| Business vintage |
| Open lines of credit |
| New lines of credit |
| Collection record of past 7 years |
Before you apply for an unsecured Business Loan in Mumbai, carefully research your options and select a lender that is offering the best rate of interest. To make your repayment process stress-free, you can use an online EMI calculator to determine your EMIs. Calculating your EMIs beforehand will give you an idea of the amount of funds you need to keep aside for loan repayment.
Online EMI calculators are automated tools that give you an approximation of your monthly payments against your loan tenure, loan amount, and the interest rate offered to you. These tools are available online and are easy to use. You must enter your loan amount, loan tenure, and interest rate. The tool will give out the estimated amount of the EMI that you will be required to pay.
Also Read: Personal Loan EMI and Eligibility Calculator: Benefits and Use
*Please note that the EMI calculator only shows an approximation of your monthly payments. Your actual payment amount may vary based on your lender’s terms and conditions.
In conclusion
A Business Loan can be used for expansion-related goals, serving as a great credit option for entrepreneurs and small-business owners in Mumbai. You can get an online SME loan in Mumbai at attractive interest rates if you have a high bureau score. The application process is fully digital and fast, which makes the loan disbursal quicker, enabling you to save time and focus on your business expansion goals.
Apart from this, if you want to know about How to Build a Roof Quickly then please visit our Finance category
