Commercial or Business loans are popular category of loans offered by almost all banks in both public as well as private sector. The main aim of a commercial loan is to help traders, businessmen and professional, start or expand their commercial activities. Such loans are provided to facilitate trade and smooth functioning of business. Loans to self employed professions such as CA, Architects, and Doctors are also a part of this category. These loans are available at attractive interest rates and low EMIs to widen the customer base. Business Loans are used for expanding, modernizing or improving small to medium scale businesses. It can be secured or unsecured.

Secured Business Loan:
Secured business loan means that the entrepreneur keeps something as collateral against the loan amount taken. Collateral can be anything from raw material to finished products, land and building of the business to plant and machinery. If you have the collateral for the cash advance, you can have the money at relatively cheap rates and with much more flexible repayment options. This happens because your collateral is able to stand guarantor for your repayment.

Unsecured Business Loan:
Unsecured Business Loan, as the name explains is a type of loan that doesn’t require collateral. It is typically at a higher rate of interest and is taken for a comparatively smaller tenor. 

Types of Business/Commercial Loans:

1. Professional Loans
2. Trade Loans

1. Professional Loans

Leading banks are catering to the need of self employed professionals like Doctors, Chartered accountants, Interior Decorators, Architects, Company Secretary etc. by offering them professional loans at lucrative rates. Manufacturing/ trading/processing units are not eligible for such a loan. These loans are unsecured in nature.

2. Trade Loans

Present day trading involves heavy initial investment and pooling in continuous financial resources. Banks are providing trade loans to traders / businessmen to help them set up or expand their business.

Take an amount to suit your business need:
Loan amounts range from Rs. 500,000 to Rs. 10,000,000. So you can opt for the right one that meets your requirements.

Collateral:
Collateral offered can be commercial or residential property. Loan can also be offered against the property of the directors of the company or partners.

Convenient tenor:
You can take a business loan for a term that is convenient for you. It can be taken for tenure up to 10 years.

Meets your business needs:
Business loans help to meet your business needs in the event of lack of money.

Quick disbursal:
Loan will be disbursed within days of the submission of the application form and required documents.

Choose the interest type you want:
There is an option to choose between fixed and floating interest rates with the flexibility to change once every year.

Loans are offered to the following parties

• Sole Proprietorships
• Partnerships
• Private Limited Companies
• Unlisted Public Limited Companies