business loan for sole proprietorship

Business Loan – Sole Proprietor

Loan up to 50 Lakhs | 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.

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.

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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
Prepayment/Foreclosure Charges Zero*
Stamp Duty At actuals (as per state)
Penal Interest 3% monthly on the defaulted EMI amount

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:

Age Requirement

Age

24 and 65

Citizenship Status

Nationality

Indian

Work Experience Required

Business Vintage

At least two years

Monthly Salary Required

Business turnover

₹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.

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:

  • KYC Documents

    Proprietor/ Partner / Director PAN Card/ Company PAN Card

  • Income Proof

    Address Proof (Voter ID/ Aadhaar/ Passport)

  • Address Proof

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

  • Financial Documents

    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.

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

    Easy online application

  • Simple eligibility criteria

    Simple eligibility criteria

  • Unsecured loan option with no collateral

    Unsecured loan option with no collateral

  • High loan amount of up to ₹50 Lakh

    High loan amount of up to ₹50 Lakh

  • Low interest rates

    Low interest rates

  • Flexible repayment tenure option

    Flexible repayment tenure option

  • Transparent loan disbursal process

    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
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Apply Online

Click on Apply Now and enter your contact details.

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Business
Details

Business Details

Enter your annual business turnover and other business details.

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Verification

Verification

The application will then proceed for verification and assessment

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 – Submit the required documents
  • Step 5 – Get the loan amount in your bank account post verification
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 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. 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.

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

A good credit score 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 within one day of loan approval.

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.

*Terms & Conditions Apply

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