Business Loan

Benefits of Business Loan

Hoping to excel in your career with your own business? SB Financials offers security free EMI based Business Loans for entrepreneur’s who are hoping to develop their business.

Required Documentation

Business Loan

Banking and NBFC finance still remain the mainstay of India’s small and medium enterprises. Business loans help your small business grow, allowing you to invest in infrastructure, operations, and plant and machinery. Moreover, business loans can also be a veritable medium of maintaining Business for critical business operations. Customized business loans are a new category of business loans which are tailored to meet the specific needs of a new age business or startup. These loans offer your enterprise the opportunity to scale and give it the competitive edge necessary for success in today’s world.
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Features of SB Future Finance Business Loan

SB Future Finance offers customized business loans for small and medium businesses in India. Our loans are free from the bureaucratic red tape that often accompanies bank loans and have a very straightforward application, approval and disbursal process. We have designed a fast and efficient digital interface that minimizes human interaction and thus helps in speeding up the whole ‘taking a business loan’ process.
We offer business loans of ₹ 50,000 up to ₹ 2 Crore to eligible SMEs. Our wider loan window increases the chances of business loan approval and provides you the funds needed for growth and expansion of your venture.
We have taken loan processing times to the next level through our Online Only loan application process. It allows us to by-pass a lot of manual work and provide same-day loan approvals.
SB Future Finance’s offers business loans faster than the 59 Minute Business Loan scheme. With our online business loan processing, you can get a business loan within 3 days as opposed to 8-10 days taken by banks.

A business loan from SB Future Finance does not put your valuable assets on risk. We offer unsecured business loans that do not require any collateral or security. So, you don’t have to worry about developing your capital assets anymore.

SBFutureFinance uses proprietary big data and machine learning tools to determine the lowest interest rates on business loans, on a case to case basis. This means, the interest rates you get from SBFutureFinance are the best ones available for your business.

Our loan tenure of minimum 1 month and maximum 36 months, vastly extends the credit relief for your business. If you are facing temporary Business problems, a business loan tenure of 6 months or more can give you the necessary buffer for resolving operational issues.

SBFutureFinance business loans promise zero hidden costs and charges. We only levy a one-time processing fee of 1-2% based on your loan ask and that’s all. This allows you to retain more of the principal amount for business growth.

Last but not the least, SB Future Finance business loans can be repaid in monthly or bi-weekly EMIs. Our EMI options allow you to pace your repayments as per your invoicing and sales cycle, for example, if your sales are going great, you can repay your business loan two times faster with the bi-weekly EMI option.

Benefits of Business Loan by SB Future Finance

Business loans from SB Future Finance are enable you to redraw your business strategies for matching today’s agile work environments. Here are the benefits of taking a business loan from an NBFC .
Faster processing means faster credit for your business, allowing you to explore new horizons and exploit opportunities as they come your way. A timely business loan can expand your marketing potential, speed up your operations, and eventually increase your profit margins.

Since it is an unsecured business loan, you are at no risk of losing valuable assets or giving up precious company stock in lieu of investment. So, a SBFutureFinance business loan allows you to preserve your ownership while also providing you with the funds to grow your enterprise.

SB Future Finance business loans increase your window of opportunity by providing both capital and time for you to streamline your cash flow and get into profitable territory. These loans allow you to strike a balance between your Business fund and company capital fund by providing investment that can be repaid in instalments.

An NBFC loan from SB Future Finance is the best way to improve your business credit score as we report loan accounts to all credit bureaus. Moreover, a business loan with SB Future Finance is especially beneficial for companies witnessing a recent dip in credit score due to unforeseen market conditions.
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Business Loan Fees & Interest Rates

Customized Interest Rates 1 to 2% per month
Processing Fees 1-2%
Loan Tenure Nil**
Eligibility Criteria ₹ 90,000 turn over for 3 Months
Loan Amount ₹ 50,000 – ₹ 2 crore
Installments Flexible Monthly / Bi-weekly
*Based on the health of your business, revenues and annual turnover **Pre-closures are only allowed after the first EMI is paid in full

Eligibility Criteria for Business Loan

SBFutureFinance has kept the eligibility requirements to the bare essentials in order to process business loans faster. We do not require too many documents or unnecessary paperwork that can hold-up the loan approval process.

  • An established business that has been in operations for more than 6 months.
  • A minimum turnover of ? 90,000 or more in the 3 months preceding your loan application.
  • The business should not fall under blacklisted / excluded list for SBA finance.
  • The physical location of your enterprises should not be in the negative location list.
  • Trusts, NGOs and charitable institutions are not eligible for small business loans.

If you are not sure if your business falls under a restricted category or location, you can contact us to confirm your eligibility

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Documents Required for a Business loan

Proprietorship Partnership Pvt. Ltd. / LLP / One Person Company
Bank statement (12 months)
Business registration proof
Proprietor(s) PAN Card Copy
Proprietor(s) Aadhar Card Copy
Partnership Deed Copy
Company PAN Card Copy
We accept any of the following as a Business registration proof 1)Business Registration Certificate 2)GST filing 3)Gumastadhara 4)Trade License 5)Drug License 6)TIN 7)VAT registration.

3 simple steps to your Business loan

Simply enter your personal, business and financial info to receive a business loan offer.
Upload digital copies of your documents in a single step process for verification.

Receive your business loan approval and disbursal within 3 working days.

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Types of Business Loans

Most people have the misconception that only banks and government institutions can sanction business loans. The truth is, there are several type of business investments available in the market that can be considered as a business loan. It is important that a small or medium enterprise owner knows about these business loan types in order to get funding through proper channels for his/her company.
Here’s a list of six most common types of Business Loan for SMEs

This facility is available from both banks and online lenders. It allows a revolving credit facility, in which a businessman can withdraw money up to a sanctioned limit from their business account, even if the actual account balance is lower. The excess amount is considered as a business loan, which can be repaid by depositing the same, plus interest, in the account.
Business owners can also raise funds by divesting their share in the company in lieu of capital investment. While a popular choice in more advanced markets like the United States, equity funding is a less preferred option in Indian investment market by SMEs, as it accompanies the risk of ownership dilution. In case of equity funding, a business owner can retain the option for buy back of shares in order to get back to preferred ownership levels, once the investment objectives have been met.
These loans have a smaller-ticket size owing to the shorter repayment window. Generally, a short-term loan is given for a period ranging between 3 to 18 months as these loans are meant for working capital finance and limited capital investment. However, SBFutureFinance offers short-term business loans for a period of 1 to 24 months, increasing the convenience of credit for small and medium enterprises in India.
Equipment finance is a popular means of improving cash flow and working capital. Equipment financing is the use of a loan or lease for purchasing or borrowing hard assets. It is a type of secured business loan because the lender has rights over the equipment in case of a default.
Also known as invoice financing, these are very short-term credits, given in lieu of accounts receivables. The shortcoming of this kind of business loans is that they can only be availed by SMEs with commercial customers. The loans tenure generally ends on the invoice due date and require full payment along with interest and processing charges.

Under this arrangement the money is paid in advance by the factor company to the business for an accounts receivable. However, instead of paying the full amount, a percentage of amount, usually 70% to 90% of the invoice value, is paid. The rest is retained to cover unforeseen charges, breakage, delivery and quality errors. For this kind of business loans, both the buying and selling companies have to come onboard and work with a factoring company.

A supplier who has provided goods or services to your business, but is yet to be paid, is considered a trade creditor. It is a very common arrangement for conducting day-to-day business activities between buyers, suppliers and service providers with long working relationships. The amount due to a trade creditor can also be considered as a very short-term business loan.

Business Loan EMI and How to Calculate It

Different types of business loans can be repaid in different ways. One of the easiest ways to repay a business loan is through Equated Monthly Instalments (EMIs). Your loan is divided into equal fixed sums that are paid on a monthly basis till the full repayment of the loan. An EMI consists of two parts, the principal loan amount and the accrued interest. Small and medium businesses find it easier to repay business loans with EMIs, as the method allows them to fund expensive assets and expansions without straining their smaller operating budgets. NBFC loan providers like SBFutureFinance offer flexible business loan EMIs that can help you repay a business loan two-times faster by opting for bi-weekly repayments. With auto-renewal also on offer by SBFutureFinance, faster repayments mean quicker access to refinance for the same amount or a larger business loan.

The Business Loan EMI calculation is done on the basis of a simple formula i.e. E = P x r x (1+r)n/(1+r)n-1 Here, ‘E’ is the EMI ‘P’ represents the loan amount ‘r’ stands for the interest rate offered on a monthly basis ‘n’ is the duration of the loan A business loan EMI calculator is a digital version of this formula, that allows you to calculate EMI amount through a web interface.The business loan EMI calculator can help you understand the breakdown of interest and principal loan amount, thus, allowing you to decide the layout of your cash resource planning.

A business loan can be a great source of capital for the growth of your venture, but, it can also be a path to ruin if you do not plan certain aspects with care. SME loans tend to have a shorter repayment cycle, which means applying for too high a loan amount will inadvertently increase your EMI amount. If your business runs into a period of low sales or your invoices get delayed, servicing the loan can become difficult and cause a debt pileup. Therefore, there are some things you should consider before applying for a business loan.
When you go for a business loan, it is because you need capital to fund a critical task. However, a business loan is not the only way to fund your working capital needs, asset acquisition or new business unit. You can also get the necessary investment by adopting cost reduction mechanisms, increasing production and sales to a limited extent, or by using the money in your contingency fund. So, consider all your financial options carefully before applying for a business loan. Sometimes it may turn out that you did not need a business loan at all and have ended up with a commercial debt for no reason.
Deciding how you are going to use the loan amount beforehand can put your business on the front foot, immediately after you receive the loan funds. The money can go directly into funding critical tasks. You can even pre-empt the operationalisation of your growth plans if you have previous working relationship with the lender. For example, SBFutureFinance business loans can be renewed upon full repayment, so, you can start a new project immediately after finishing the current one, as your working relationship with SBFutureFinance will ensure a renewal. On the other hand, not planning ahead can sometimes lead to wastage of loan funds, as they get used for non-critical tasks. For example, you may end up using your working capital loan money for paying an existing debt or for purchasing plant and machinery, which will then create a void in your working capital funds.
Lastly, any form of capital investment should benefit your business. If you have a plan for repaying the loan and also have an intended use-case for the loan money, but it is not providing meaningful growth to your operations, you should probably think again about taking a business loan. So, sit with your financial planners, operational heads and other business advisors to chart a strategy for growth before you apply for your first business loan.

Business Loan FAQs

What is a business loan?
A business loan is a loan taken for investments in a business set up. It is essentially borrowing money for a set purpose and entails repayment with a fixed interest rate.
Why should you take a business loan?
You can take a business loan to fund your business investments and projects. A business loan can help your business venture to prosper at a faster pace and you can finish stagnant projects immediately.
Are there any benefits of taking a business loan from SBFutureFinance?

Are there any benefits of taking a business loan from SBFutureFinance?

On the other hand, we have very reasonable and lower interest rates. Also, we don’t require any collateral or property for security. It makes our loans unsecured and less risky for you.

We do not take any additional penalty for a loan foreclosure and there are no hidden payments and charges with our business loans.

Do I have to visit the SB Future Finance Branch office to avail a loan?
No, the whole process of taking loans is automated online. The document verification too occurs online and thus provides a hassle-free loan application process.
Is there any advantage offered by NBFC for women entrepreneurs
SBFutureFinance’s business loans are free from any bias and prejudice as it is an automated process. The loans provided are in equal and fair terms and conditions.
What are the chances of me getting a business loan from SBFutureFinance?
Due to the different ranges of ticket-size we offer at SBFutureFinance, there are higher chances of a loan approval from us than a bank.
How can I speed up my loan approval?
Even though our loans are faster than banks, we urge you to provide correct documents and follow the online application process thoroughly so that the loan approval doesn’t have any stoppages.
How can I apply for a business loan on SBFutureFinance?
You can apply for a business loan on SBFutureFinance online. The process to be followed is noted in the section above.
How can I check the application status of my loan?
You can check your application status at your SBFutureFinance account after login. It will be notified at the dashboard.
How can SBFutureFinance provide lower interest rates for loans?
We have made the whole loan application process online which allows us to reduce any manual costs required if our process was so. The savings due to this reduction is passed on to the borrower at low interest rates.
What is the minimum required turnover of my business to be eligible for loans at SBFutureFinance?
A minimum of INR 90,000 or more in the 3 preceding months makes your business eligible for a business loan at SBFutureFinance.
What businesses qualify for a loan at on SBFutureFinance?
Businesses that have been operational since the past 6 months have a turnover greater than INR 90 thousand are eligible for a loan at SBFutureFinance.
What is the maximum amount of loan that I can take?
The maximum amount of loan that can be availed is up to INR 2 Crores
How can I know the EMI for my loan?
The EMI is calculated using the simple formula: E=P×r×(1+r)×n(1+r)×(n-1)
Where,‘E’ is the EMI ‘P’ represents the loan amount availed ‘r’ represents the monthly interest rate ‘n’ is the duration of the loan
What is loan foreclosure?
If your business is thriving and sales are up, full repayments at once are possible. You won’t have to keep paying multiple EMIs every month. This is called loan foreclosure or prepayment. However, you have to pay an extra amount called foreclosure charges if you wish to proceed with loan foreclosure.
Are there any foreclosure charges for business loans with SBFutureFinance?
With SBFutureFinance, one can opt for a foreclosure without any additional charges. There no such hidden costs.
What is the benefit of choosing to repay the loans bi-weekly instead of monthly instalments?
The loans are to be repaid are paid faster. If you want to optimize your working capital, faster repayments can help with the renewal of the loan and you can have a revolving credit line in place for better optimization.
What are the requirements of collaterals and security?
All business loans under SBFutureFinance do not require collateral and hence are unsecured.
Can I avail a loan if I have a low credit score?
Yes you can avail a loan at any credit score but it inadvertently increases the interest rates. It is advisable that you should improve your credit score and then apply.
Can I change the due date of my EMI?
Yes. The due date of the EMI payment can be changed.
How is my CIBIL score affected if I close my loan?
Your CIBIL score may not be affected directly but the improvement of your CIBIL loan might be stifled. It is advisable that timely repayment is done.
What is the possibility of getting a business loan for SMEs from
What is the possibility of getting a business loan for SMEs from SBFutureFinance? The wide range of ticket-sizes offered by SBFutureFinance means you have a higher chance of getting a business loan from us than from a bank.
Can I use a business loan for working capital management?
Yes, SBFutureFinance business loans are all-in-one products which can be used for many short-term functions such as working capital management, inventory management and purchasing equipment.
What are the pre-closure charges for business loans by SBFutureFinance?
There are no pre-closure charges or hidden fees.
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