business loan for sole proprietorship

Sole Proprietor Loan

for Business

Loan up to 50 Lakh | Low Interest Rates | Quick Disbursal | Easy to Apply

A sole proprietorship business is one of the most common forms of self-employment in India. It is an unincorporated business entity that is owned and run by only one individual. Examples of sole proprietorship businesses include small traders, kirana shops, medical stores, travel agents, artisans, etc.

To help sole proprietors invest in business expansion, Poonawalla Fincorp provides unsecured Business Loans for Proprietorship at favourable interest rates. Additionally, our Proprietorship Business Loans are collateral-free and come with great features and benefits, such as flexible repayment tenure, minimal documentation, and quick disbursal. Apply now!

The Proprietorship Business Finance can be used to meet various business-related expenses. Some of the common reasons for which you can take a Business Loan for Proprietorship include:

  • Maintaining a healthy cash flow
  • Renting, purchasing, or renovating business premises
  • Upgrading business equipment and infrastructure
  • Expansion or diversification of business
  • Procuring inventory
  • Hiring and training of staff
  • Paying overhead costs
Types of Fees Applicable Charges
Rate of Interest 15% to 28% p.a.*
Processing Fees Up to 3% plus applicable taxes
Repayment Instrument Dishonour Charges ₹1,000 per bounce plus applicable taxes
Default Interest 3% per month
Loan Amount ₹1 Lakh to ₹50 Lakh
Lowest EMI per Month Starting from ₹2,783* per Lakh for 48 months
Loan Tenure 6 to 48 months
Prepayment/Foreclosure Charges 0%* If paid from own sources & 4% If paid from other sources
Stamp Duty At actuals (as per state)
Penal Interest 3% monthly on the defaulted EMI amount

With Poonawalla Fincorp, you can apply for a quick and hassle-free loan for your business. All you need to do is fulfil some basic eligibility guidelines.

Below are our eligibility criteria for Proprietorship Loans:

Age Requirement


Between 24 and 65 years

Citizenship Status



Work Experience Required

Business Vintage

At least two years

Monthly Salary Required

Business turnover

₹6 Lakh or more

Please note that the above-mentioned eligibility criteria are indicative in nature. Additional information may be required by our team during loan processing as per policy.

Lengthy, unending paperwork can dampen your overall borrowing experience. With Poonawalla Fincorp, you can get a Business Loan with minimal documentation.

Here’s a list of required documents to apply for our Business Loan for Proprietorship:

  • Income Proof

    Address Proof (PAN Card/Aadhaar Card/Driving Licence/Voter ID/Passport)

  • Address Proof

    Address proof for the place of business (Rent agreement/Electricity and water bills, etc)

  • Financial Documents

    Financial documents (Six months Bank Statement)

Note: This list of documents is indicative. We may ask for some additional documents during loan processing.

By availing of a Poonawalla Fincorp Business Loan for Proprietorship, you can take your business to great heights. Our loans are customizable to suit the specific needs of every business owner.

  • Easy online application

    Easy online application

  • Simple eligibility criteria

    No collateral required

  • Unsecured loan option with no collateral

    Competitive interest rates

  • High loan amount of up to ₹50 Lakh

    Transparent loan terms

  • Low interest rates

    Simple eligibility criteria

  • Flexible repayment tenure option

    High loan amount of up to ₹50 Lakh

  • Transparent loan disbursal process

    Flexible repayment tenure of up to 48 months

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Apply Online

Click on ‘Apply Now’ and enter your contact details.

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Business Details

Enter your annual business turnover and other business details.

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Submit the application for verification and assessment

How to Apply for Poonawalla Fincorp’s Proprietorship Loan?

You can conveniently apply for our Proprietorship Loan online or offline. All you need to do is follow the five simple steps mentioned below:

You will receive the approved loan amount in your bank account post successful verification.

Who is eligible to apply for a Proprietorship Loan?

Poonawalla Fincorp provides Business Loans for Proprietorship with easy eligibility criteria and minimal documentation. All proprietorship business owners with a minimum experience of two years and an annual turnover of more than ₹6 Lakh can apply for our Proprietorship Loans.

What are the charges applicable for Proprietorship Loans?

Our interest rates for Proprietorship Loans are competitive and affordable. Other applicable charges include a one-time nominal processing fee of 3% on the loan amount, plus applicable taxes. These nominal charges help us in countering the administrative charges and providing best-in-class services to our customers.

Do I need to have a good credit score to apply for a Proprietorship Loan?

A good credit score (750 and above) will help you get quick approval as well as the best interest rate on your Proprietorship Loan.

In how many days will I get my loan amount?

Poonawalla Fincorp’s Proprietorship Loans are approved and disbursed quickly. Depending upon the verification process, in some cases, you can get the loan amount in your bank account quickly within a short time.

How can I calculate the EMIs I need to pay for my loan?

You can use our online Proprietorship Loan EMI calculator to know the EMIs you need to pay for your loan repayment. To calculate your EMIs, you need to visit the calculator page, enter the loan amount, interest rate, and tenure, and click on the ‘Check Repayment Schedule’ option.

What is a sole proprietor's loan?

Generally, a Sole Proprietor includes a local clothes store, a local grocery store, etc. If you are looking for a Sole Proprietor Loan, you can apply for one with Poonawalla Fincorp. This type of unsecured Business Loan is offered to sole proprietors looking to meet various financial requirements. You can use the funds for maintaining a healthy cash flow, renting, purchasing, or renovating business premises, upgrading business equipment and infrastructure, etc.

*Terms & Conditions Apply

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