Get Collateral Free Sole Proprietor Business Loan
A sole proprietorship business is the most common form of self-employment in India. It is an unincorporated business entity that is owned and run by an individual only. Examples of sole proprietorship businesses include small traders, Kirana shops, medical stores, travel agents, artisans, etc. Adequate funding is necessary for these businesses to grow and expand. If a suitable loan is provided for business expansion, working capital, equipment update, publicity, or diversification, the sole proprietor, like any other business, will considerably profit.
To help the sole proprietorship firm owners turn their business dreams into reality, Poonawalla Fincorp provides Business Loans and Personal Loans for proprietorship company employees at competitive 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, minimal documentation, and quick processing.
Various Reasons to Take Proprietorship Loan
- The proprietorship business finance can be sought to meet a variety of business-related expenses. Some of the common reasons to take a Business Loan for proprietorship include:
- Meeting working capital requirements
- 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 types of Business Loans available to sole proprietors, each of which is decided by the loan's security. As a result, the loans can either be:
Secured Loan - A Business Loan for which sufficient security covering the loan amount has been obtained. Mortgages, deposits, certificates, LIC insurance, and other similar instruments can be used as security.
Unsecured Loan - The borrower is not required to provide any collateral for the loan to be granted.
Features & Benefits of Proprietor Business Loan
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.
- Below are some striking features and benefits of our Proprietorship loans:
- Easy online application
- Simple eligibility criteria
- Unsecured loan with no collateral
- High loan amount of up to ₹50 lakh
- Attractive and competitive interest rates
- Flexible repayment tenure
- Transparent loan disbursal
- Doorstep services
Eligibility Criteria for Proprietor Business Loan
With Poonawalla Fincorp, you can get access to quick and hassle-free financing for your business. All you need to do is fulfil some basic eligibility guidelines.
- Below are our eligibility criteria for Proprietorship loans:
- The applicant must be a citizen of India
- The applicant must be aged between 22 and 65 years at maturity
- A business vintage of a minimum of two years is required
- The annual business turnover should be at least ₹9 lakh
Documents Required for Proprietor Business Loan
Lengthy, unending paperwork can dampen your borrowing experience. With Poonawalla Fincorp, you can avail of a Business Loan with minimal documentation.
- Below is the list of required documents for our proprietorship loan:
- 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 that this list of documents is indicative. We may ask for some additional documents during loan processing.
How to apply for our 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 – Upload or submit the required documents
- Step 5 – Get the loan amount in your bank account post verification
Frequently Asked Questions on Proprietorship Loan
Who are 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 three years and an annual turnover of more than ₹ 9 lakh can apply for our proprietorship loans.
What are the interest rates and charges applicable for proprietorship loans?
Our interest rates for proprietorship loans are competitive and affordable, starting from only 15% per annum. Additionally, we levy a one-time processing fee of 2% on the loan amount. It helps 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?
With Poonawalla Fincorp, there is no requirement of a minimum credit score to apply for a loan. However, a good credit score of 750 or above may help you get the best interest rate on your proprietorship loan.
In how many days will I get my loan amount?
Poonawalla Fincorp proprietorship loans are approved and disbursed quickly. Depending upon the verification process, you can get the loan amount in your bank account within five to ten days of your application.
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 “Check Repayment Schedule”.