Business funding
Business loans for Delhi NCR businesses
Six funding routes, what each one is suited to, and how a lender decides between them. Read this page first if you are not yet sure which kind of borrowing your business actually needs.
What is a business loan?
A business loan is credit extended to a business for a business purpose — buying stock, funding a receivables gap, purchasing equipment, expanding capacity or consolidating costlier debt. It can be unsecured, meaning no asset is pledged, or secured against collateral such as property. The lender assesses repayment capacity from the business's cash flows and the borrower's credit record.
The word covers several quite different products. A term loan gives you a fixed sum repaid over a fixed period. A working capital facility gives you a limit you draw on and repay repeatedly. A loan against property converts an asset you already own into long-term funding. Choosing the wrong one is expensive even when the interest rate looks fine.
The main funding routes
| Route | Best suited to | Security | Typical horizon |
|---|---|---|---|
| Unsecured business loan | Growth, expansion or a defined one-time need where speed matters | None | Short to medium term |
| Secured loan / loan against property | Larger requirements, capacity building, or refinancing costlier debt | Property mortgage | Long term |
| Working capital facility | Recurring gaps between paying suppliers and collecting from buyers | Often hypothecation of stock and receivables | Revolving |
| Equipment or machinery finance | Buying a specific asset, where the asset itself supports the credit | Usually the asset financed | Medium term |
| Scheme-linked MSME credit | Registered micro and small enterprises, including credit-guarantee-backed lending | Guarantee cover in place of collateral | Varies |
| Invoice or receivable finance | Businesses with confirmed invoices on creditworthy buyers | The receivable | Very short term |
How do I know which one my business needs?
Start with the purpose and the repayment source, not the product. If the money funds a one-time asset or project, a term loan matches. If it funds a recurring timing gap between payables and receivables, a working capital limit is usually cheaper because you pay interest only on what you use. If the requirement is large relative to turnover and you own property, a secured route will usually be more affordable than forcing the amount through an unsecured programme.
Three questions settle most cases:
- What exactly is the money for? Write it down in one sentence. Vague requirements produce vague applications and small offers.
- How long will it be needed? A three-month need financed over five years quietly costs far more than the rate suggests.
- Where does repayment come from? If you cannot name the cash flow that repays the loan, the lender will not be able to either.
What does a business loan actually cost?
The interest rate is only part of the cost. Processing fees, documentation and legal or valuation charges, insurance if required, foreclosure or part-payment terms, and the tenure all change what you eventually pay. A lower headline rate over a longer tenure can cost more in total than a higher rate repaid quickly.
Compare offers on three things: the total amount repaid over the life of the loan, the EMI relative to your monthly surplus, and how easily you can exit early if business improves. We will not publish indicative rates on this site, because a rate quoted without your profile in front of it is meaningless.
Before you apply anywhere
Every formal application creates a credit bureau enquiry. A cluster of enquiries across several lenders in a short window is itself read as a signal of distress, and can reduce your chances with the next lender. Prepare once, then apply selectively.
- Check eligibility properly against the profile lenders actually assess.
- Assemble the document set in full before the first conversation.
- Reconcile filed turnover with bank credits, and be ready to explain any gap.
- Clear or regularise small overdue balances — they carry disproportionate weight on a bureau report.
- Decide the amount you need, not the maximum you might be offered.
Go deeper
Pages in this section
Business loan without collateral
How unsecured lending is assessed, who qualifies, and what it is realistically used for.
Read →Secured business loans & LAP
Raising larger, longer-tenure funding against property you already own.
Read →Working capital finance
Overdraft, cash credit and receivable-linked limits for timing problems.
Read →Questions people ask
Frequently asked questions
What is a business loan?
A business loan is credit extended to a business for a business purpose such as stock, equipment, expansion or a working capital gap. It may be unsecured, where no asset is pledged, or secured against collateral such as property.
What can a business loan be used for?
Common uses include buying inventory, funding a gap between paying suppliers and collecting from customers, purchasing machinery or equipment, fitting out or expanding premises, hiring ahead of a large order, and consolidating costlier existing debt. Lenders generally expect a stated business purpose and may restrict speculative use.
How long does a business loan application take?
It depends on the route. Unsecured applications are largely document- and data-driven and move faster; secured loans add property valuation and legal title verification, which takes longer. The biggest variable in practice is how complete the file is when it is first submitted — an incomplete file re-opened three times will always be slower than a lender's stated turnaround.
Do I need GST registration to get a business loan?
Not always. GST registration is not universally mandatory, but GST returns give a lender verifiable revenue data, and a business that files them usually gets a better assessment than one relying only on bank statements. Where a business is not GST-registered, bank credits and ITR carry more weight.
Will applying to several lenders at once improve my chances?
Usually the opposite. Each formal application creates a credit bureau enquiry, and several enquiries in a short period is read as a sign of stress. It is better to prepare the file properly and apply selectively to lenders whose credit policy matches your profile.
Can a new business or startup get a business loan?
It is harder. Most unsecured programmes expect a minimum trading history, so a very new business often has to look at secured routes, scheme-linked credit for registered micro enterprises, or funding supported by the promoter's own profile. Confirmed orders and a clear repayment source help.
Talk through your funding requirement
Tell us what the money is for, how much you need and by when. We will tell you which route fits, what the file needs to contain, and what is realistic — before you apply anywhere.