Business Loan
What is a Business Loan?
A business loan is a type of financing provided by banks, non-banking financial companies (NBFCs), or other lenders to help entrepreneurs and companies meet various business needs. These needs may include starting a new business, expanding operations, managing working capital, purchasing equipment, or covering operational expenses.
Business loans can be:
- Secured, requiring collateral such as property or equipment
- Unsecured, not requiring any asset as security but usually at higher interest rates
Repayment is typically made in monthly installments (EMIs) over a fixed tenure. Loan amounts, interest rates, and terms vary based on the business’s creditworthiness, financial health, and loan purpose.
Business loans provide essential financial support to help businesses grow, operate smoothly, and take advantage of new opportunities.