Get Collateral Free Sole Proprietor Business Loan
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.
Adequate funding is necessary for such businesses to grow and expand their business operations. If a suitable loan is provided for business expansion, working capital, equipment update, publicity, or diversification, the sole proprietor, like any other business, can make considerable profits.
To help sole proprietorship firm owners turn their business growth dreams into reality, Poonawalla Fincorp provides Business Loans for Proprietorship at low interest rates. Additionally, our Proprietorship Business Loans are collateral-free and come with a gamut of exciting features and benefits, such as flexible repayment tenure option, minimal documentation, and quick disbursal.
Reasons to Apply for Proprietorship Loan
The Proprietorship Business Finance can be used to meet various business-related expenses. Some of the common reasons to 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
Nature of Sole Proprietor Business Loan
There are two main types of Business Loans available to sole proprietors:
Secured Loan - In Secured Business Loan a sufficient security covering the loan amount has to be obtained. Mortgages, jewelry, deposits, certificates, LIC insurance, and other similar instruments can be used as security.
Unsecured Loan - In this case, the borrower is not required to provide any collateral for the loan to be granted.
Proprietorship Business Loan EMI Calculator
Sole Proprietorship Business Loan Interest Rates
|Types of fee||Applicable Charges|
|Rate of interest||15% to 28% p.a.*|
|Processing fees||Up to 3% plus applicable taxes|
|Bounce charges||₹1,000 per bounce plus applicable taxes|
|Late Payment Charges||3% per month|
|Loan Amount||₹1 Lakh to ₹50 Lakhs|
|Lowest EMI per month||Starting from ₹3,467* per Lakh for 36 months|
|Loan Tenure||6 - 36 months|
|Stamp Duty||At actuals (as per state)|
|Penal Interest||3% monthly on the defaulted EMI amount|
Eligibility Criteria for Proprietor Business Loan
With Poonawalla Fincorp, you can apply for 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:
24 and 65
At least two years
₹6 lakh or more
- The applicant must be aged between 24 and 65 years at loan maturity
- The applicant must be a citizen of India
- A business vintage of a minimum of two years is required
- The annual business turnover should be at least ₹6 Lakh
Please note that the above-mentioned eligibility criteria are indicative in nature and more information can be asked by Poonawalla Fincorp team during loan processing as per policy.
Documents Required for Proprietor Business Loan
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 for our Business Loan for Proprietorship:
Proprietor/ Partner / Director PAN Card/ Company PAN Card
Address Proof (Voter ID/ Aadhaar/ Passport)
Address Proof for the place of business (Rent agreement/ Electricity, water bills, etc)
Financial documents (Six months Bank Statement)
- Your Company PAN card or Proprietor PAN card
- Your Address Proof (Aadhar Card/Voter ID Card/Passport)
- Your Business Proof (Rent Agreement/Utility Bill/Trade License)
- Financial documents of your business (Bank statements/IT Returns)
Note: This list of documents is indicative. We may ask for some additional documents during loan processing.
Features & Benefits of Business Loan for Proprietorship
By availing 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
Simple eligibility criteria
Unsecured loan option with no collateral
High loan amount of up to ₹50 Lakh
Low interest rates
Flexible repayment tenure option
Transparent loan disbursal process
Below are some striking features and benefits of our Proprietorship loans:
- Easy online application
- Simple eligibility criteria
- Unsecured loan option with no collateral
- High loan amount of up to ₹50 Lakh
- Low interest rates
- Flexible repayment tenure option
- Transparent loan disbursal process
Apply for Proprietorship Business Loan within 5 Minutes
Click on Apply Now and enter your contact details.
Enter your annual business turnover and other business details.
The application will then proceed for verification and assessment
Frequently Asked Questions on 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:
- Step 1 – Visit our website or your nearest branch
- Step 2 – Check your eligibility for our Proprietorship Loan
- Step 3 – Fill up the loan application form
- Step 4 – Submit the required documents
- Step 5 – Get the loan amount in your bank account post verification
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.
Our interest rates for Proprietorship loans are competitive and affordable. Additionally, we levy a one-time nominal processing fee of 3% on the loan amount plus applicable taxes. It helps us in countering the administrative charges and providing best-in-class services to our customers.
A good credit score will help you get quick approval as well as the best interest rate on your Proprietorship Loan.
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 within one day of loan approval.
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.
*Terms & Conditions Apply