Business Loan

Business Loan

A Business Loan is a type of financing provided by Manasvi Capital to help entrepreneurs, SMEs, MSMEs, or established businesses manage working capital, expand operations, buy inventory or machinery, or meet other business-related expenses.

Key Features of a Business Loan

Feature	Details
Loan Type	Can be secured or unsecured
Purpose	Working capital, expansion, equipment, office space, etc.
Loan Amount	₹50,000 to ₹5 crore (varies by profile & lender)
Interest Rate	10% to 24% p.a. (based on risk, profile, business size)
Loan Tenure	12 months to 5 years
Processing Time	Fast-track loans in 3–7 days
Collateral	Not required in unsecured loans; property/assets for secured loans

Types of Business Loans

1. Working Capital Loan – For daily operational needs
2. Term Loan – For expansion, asset purchase, long-term goals
3. Machinery/Equipment Loan – For buying new machinery or tools
4. Invoice/Receivable Financing – For short-term liquidity
5. Business Overdraft/Line of Credit Flexible funds against limits
6. MSME/SME Loans – Special loans for small businesses

Eligibility Criteria

• Age: 21 to 65 years
• Business Vintage: At least 1–3 years of operations (for unsecured)
• Turnover: Minimum ₹10–20 lakh annually (varies)
• Profitability: Consistent profit or revenue history
• Credit Score: Minimum 650+ preferred for unsecured loans
• Documents Required

Individuals/Proprietors	Partnerships/Firms/Companies
PAN, Aadhaar, photo	Company PAN, registration certificate
Address proof (office & owner)	GST, MSME certificate, MOA/AOA/Partnership deed
6–12 months bank statement	Bank statement of current account
ITR of 2–3 years	ITR, audited P&L, Balance Sheet
Business Proof (GST, license)	Directors’ KYC and shareholding details

Benefits of a Business Loan

• Fast disbursal (within 48–72 hours)
• No need to dilute equity or involve partners
• No collateral required for smaller unsecured loans
• Flexible repayment (EMI, bullet, overdraft facility)
• Tax benefits on interest paid under section 36(1)(iii)

Example (Unsecured Business Loan)

• Loan Amount: ₹5,00,000
• Tenure: 36 months
• Interest Rate: 18% p.a.
• Monthly EMI: ₹18,084
• Total Interest: ₹1,51,000 approx.

Common Sectors Taking Business Loans

• Traders & wholesalers
• Manufacturers
• Service providers
• Small retail businesses
• Logistics & transporters

Medical practitioners & diagnostic centres