What is business loan?

In case of shortage of funds or financing a new venture or fund the renovation of machinery a business can avail loan from the bank. Banks loan money to businesses, which must be repaid by the borrower, called the business loan. These loans are provided only to fund business expenses and thus carry a higher interest rate.

Features of business loan:

• Business loans are no hassle loans as they require minimal documentation.
• They come with flexible repayment options.
• Business loans can be of various types depending on the requirement of the borrower, such as microloans, secured loans, working capital loans, business expansion loans, etc.
• The government also provides business loans through the MUDRA Yojana.
• Depending on the size of the business, a maximum business loan of up to Rs. 75 Lakhs can be availed.