How to Apply for a Business Loan of ₹10 Lakhs: Step-by-step Guide for First-time Entrepreneurs

Apply for a rupee 10 Lakh business loan in India with minimal documents, quick approval, and flexible EMIs. Check eligibility, documents & steps here.

How to Apply for a Business Loan of ₹10 Lakhs: Step-by-step Guide for First-time Entrepreneurs

₹10 Lakh business loan India

Starting and growing a new venture in India can be an exciting yet challenging experience. One of the most common hurdles new entrepreneurs face is securing adequate funds to support their ambitions. A ₹10 Lakh business loan can play a crucial role in helping you set up your company, scale operations, or manage cash flow gaps. This comprehensive guide explains each step to apply for a business loan, ensuring you have all the information you need to make confident financial decisions.

Why Choose a ₹10 Lakh Business Loan

Opting for such a loan provides several benefits, such as:

Quick disbursal: Funds are often credited within 48 hours of approval.
Minimal documentation: Only basic documents are usually required.
Flexible repayment: EMIs can be spread over extended tenures, making repayment easier.
No collateral: You do not need to risk personal assets.
Online account management: Easily track, manage, and download loan statements from anywhere.
Flexi loan facility: Some lenders offer a structure where you pay interest only on the amount utilised, thus reducing your outgo in the initial months.

Check Your Eligibility Before You Apply

Lenders have specific eligibility criteria for approving a ₹10 Lakh business loan. Make sure you fulfil these requirements to improve your approval chances:

Minimum Age: Applicants must be at least 21 years old.
Nationality: Only Indian citizens are eligible.
Credit Score Requirement: A healthy CIBIL score is necessary.
Eligible Profiles: Open to both self-employed professionals (e.g., doctors) and non-professionals (e.g., traders, manufacturers).
Accepted Business Types: Includes LLPs, partnership firms and private limited companies.
Business Experience: A minimum of 1 to 3 years of operational history is required.
Minimum Income: Annual income should exceed ₹1 Lakh, supported by ITR filings.

Self-employed professionals, non-professionals, sole proprietors, partnership firms, and private limited companies can all apply for a business loan through this route.

Documents Needed to Apply for a Business Loan

Having the right documents ready is key to a smooth application. Typically, to apply for a ₹10 Lakh business loan, you will need the following:

KYC documents: Aadhaar Card, PAN Card, Voter ID, Driving License, or Passport.
Address proof: Utility bills, rental agreement, or passport.
Ownership proof: Certificate of business registration or establishment.
Financial documents: GST returns, latest bank statements, profit and loss statement, balance sheet certified by a CA.
Income proof: Most recent income tax returns.

Step-by-step Process to Apply for a ₹10 Lakh Business Loan

Applying for a ₹10 Lakh business loan through %$$BrandName$$% is a quick and straightforward process. You can complete the entire application online by following these simple steps:

1. Click on the ‘Check Eligibility’ button on the page.

2. Enter your basic personal and business credentials in the form.

3. Specify the loan amount you need (₹10 Lakhs) and select your preferred repayment tenure.

4. Review all details and submit the completed application form.

Upon submission, the lender will verify your information and begin the loan processing promptly. You may be contacted by a representative for further steps to finalise your loan approval.

5. Upload Required Documents

Make sure all your documents are clear and up to date. Upload your KYC, business, and financial documents as instructed in the online portal. Most lenders ask for your bank statement for the last six months as proof of stable business income.

6. Submit the Application Form

Double-check all details for accuracy. Submit the form online once complete. You will get a call from their representative to guide you through the next steps.

7. Application Review and Approval

The lender will assess your loan application, business profile, and submitted documents. If all criteria are met, the loan will be approved swiftly and funds can be credited to your business account within a short span of time.

8. Loan Disbursal

Upon approval, you will receive a formal loan agreement. Review all terms, interest rates, EMI schedules and accept the offer.

Tips to Improve Your Loan Eligibility

Lenders assess your eligibility based on business performance and personal credit history. Use these tips to improve your chances:

Maintain a CIBIL score above 685 by ensuring timely EMI repayments on any past loans.
File your income tax returns regularly.
Keep your business’s financial statements updated and professionally audited.
Avoid defaults or outstanding dues in your financial records.
Showcase steady business growth and stable turnover in recent years.

Common Mistakes to Avoid While Applying

Submitting incomplete or outdated documents.
Understating liabilities or financial commitments.
Providing inaccurate information in the application form.
Not reviewing the terms and charges before signing the agreement.

Conclusion

Securing a ₹10 Lakh business loan has never been easier for first-time entrepreneurs in India. By understanding eligibility, preparing the necessary documents, and following the right application steps, you can obtain funding to realise your business dreams. Compare offers, check the repayment terms, and utilise digital marketplaces like %$$BrandName$$% for a seamless application experience that empowers your business journey.