Small Business Loan

What are Small Business Loans?

Just like large enterprises, small businesses such as local Kirana stores, electronic repair shops, bakeries, and clothing stores too need funding from time to time. In maximum cases, such businesses require short-term finances to fulfill their urgent cashflow requirements, which can include paying wages to staff, making payments to vendors, or upgrading workplace infrastructure.

Tata Capital’s small business loans are tailor-made loans to help micro and small businesses in India meet their urgent monetary requirements. We provide affordable loan for small business in India with easy eligibility criteria and minimal documentation. You can apply for a new small business loan online and get the funding from the comforts of your home or office.

Loan Amount

₹ 1 Lakh to ₹ 90 Lakhs

Loan Tenure

6 months to 36 months

Interest rate starting @

Starting from 12% p.a.* (This may vary depending on the product and profile).

View Rates & Charges

Features and Advantages of Tata Capital's Small Business Loan

Convenient Loan Amount

By applying for a small business loan with us, you can get small business financing of up to Rs. 1.5 lakhs. You can choose your small business funding amount as per your precise business requirements. We provide small business loans for women as well as men entrepreneurs.

Flexible Loan Tenure

Our loan for small business comes with a flexible tenure of up to 36 months. It means that you have the flexibility to choose your loan tenure as per your repayment capability. A higher loan tenure will reduce your monthly EMI but increases your interest outgo.

Easy Eligibility

With Tata Capital, you can get a loan to start a small business or expand your existing business by fulfilling easy eligibility criteria and minimum documentation. Additionally, our loan for small business is approved and disbursed faster to provide you with on-time small business financing.

No Collateral Required

Our business loans for small businesses are 100% collateral-free loans. It means that you are not required to put any of your personal or business assets on the line to qualify for your small business funding.

Doorstep Services

To avail of a loan for small scale business with Tata Capital, you won’t have to step out of your home or office. We provide small business loans online along with doorstep services for document collection and other formalities.

Why Should You Choose Tata Capital’s Small Business Loans?

With Tata Capital, you can get a loan for small business in India without any hassles. Here are a few reasons why you should choose to apply for our small business loan:

Manage Your Working Capital

Every business, irrespective of its size and nature, needs working capital to manage its day-to-day operations. For small business owners, getting access to timely working capital is even more crucial as they are in their growth cycles. Tata Capital provides loan for small scale businesses so that they can meet their short-term working capital requirements with minimum fuss.

Special Rates for Women

At Tata Capital, we provide small business loans for women with attractive interest rates and minimum eligibility requirements. So, as a women entrepreneur, you can apply for our loan for small business and get adequate business funding to meet all your short-term requirements. We offer loans for small businesses up to Rs 1.5 lakhs.

Business Expansion

If you’re looking to expand your existing small business, there can be no better companion than Tata Capital’s small business loan. You can take a loan to start a small business or expand your existing business to greater heights. We provide one of the best small business loans in India with highly competitive interest rates and extended loan tenures.

Tackle Seasonal Cashflow Requirements

If you’re into a seasonal business - for example, a fire-cracker seller, a dry fruit shop, a bridal collection store, etc. - your cashflow requirements during peak season can suddenly go up. During such times, you can avail of a small business loan in India to meet your urgent cash flow needs easily. You can then repay the loan amount in easy EMIs over a convenient tenure.

Who Can Apply for Small Business Loans?

We provide small business loan in India to anyone who can fulfill our business loan eligibility criteria. Below is a list of businesses or customers who can apply for a loan for small business with us:

Self-employed individuals
Sole proprietor small enterprises consisting of manufacturers, retail and wholesale trade and services customers

How to Use a Small Business Loan from Tata Capital?

After receiving your application for a small business loan, we will start a verification process. Upon successful verification, the loan amount will be transferred to your bank account. Now, what next?.
How you choose to spend your startup loan will have a big impact on your business. It’s imperative to have a strategic plan to put your business funding to work. Here are a few ideas on how you can use a small business loan:

Procure Inventory

Certain small businesses, such as retail departmental stores, count on the sales of their inventory to generate profits. They need to keep their inventory full all the time so that they do not lose their potential customers. This can range from the latest beauty products to stationery items to groceries. A start-up business loan can help such business owners immensely to stock their shelves with adequate inventory and also take advantage of bulk discounts.

Upgrade Machinery or Equipment

If you are in a manufacturing or processing business, you rely heavily on certain machinery and equipment for daily production. Sometimes, you may need to replace old machines in your factory with the latest and updated ones to ensure optimum business efficiency. Those in the logistics business may need to expand the size of their fleet or replace existing vehicles with more efficient models. One of the best ways to procure business equipment is by using a start-up business loan.

Meet Day-To-Day Expenses

As a small business owner, you know that every venture requires certain expenses for its day-to-day operations. These may include electricity bills, office rent, labor charges, vendor payments, staff payments, etc. You can use your small business loans for startups to meet such recurring business expenses. This financing option can be a boon for you when you need additional working capital to tackle seasonal fluctuations. Tata Capital offers short-term working capital loans of up to Rs. 1.5 lakhs.

Consolidate Your Debt

You might have taken a personal loan or used your credit card to meet some urgent business-related financial requirements. However, such financing avenues often attract higher interest rates that can go up to 30% per annum. To reduce your borrowing costs, you can use a small business loan for debt consolidation. Tata Capital’s start-up loans come with highly competitive interest rates, starting from just 12% per annum. Additionally, we offer small business loans for women entrepreneurs at special rates.

Invest in Marketing

To grow a business, it’s necessary to enchant new customers and keep existing customers on the hook. For this, you may need to place your business advertisements in print media and social media, send e-mails, participate in events, and do much more. You may also need to hire proficient marketing professionals or agency services that can derive an efficient marketing strategy for your business. With a startup loan, you can expand your marketing budget and take your business to soaring heights.

Eligibility Criteria for Small Business Loans

At Tata Capital, we provide loans for small businesses with easy eligibility criteria and minimum documentation. Below are the eligibility requirements you need to fulfill to avail of our small business loan:

Your age should be between 21 years and 60 years (at the time of last EMI)

You should have a business vintage of at least two years

Your business turnover should indicate an upward trend

Please note that our small business loan eligibility criteria may include some other parameters as well.

Documents required for small business loans

To apply for a small business loan, you must produce the following documents:

Duly filled loan application form
Business KYC
Last 6 months' business and individual (proprietors/partners) bank statements.

How to Get a Small Business Loan?

Applying for a small business loan with Tata Capital's app is easy and convenient.

Apply online by visiting our website and get an instant approval
Call our customer care number at 1860 267 6060 between 9 am and 8 pm on Monday to Saturday to apply through your mobile phone
Take the help of our 24x7 virtual assistant TIA to apply anytime and from anywhere
Visit your nearest Tata Capital and get in touch with one of our representatives there

How to Apply for a Tata Capital Small Business Loan?

Branch

You can visit your nearest Tata Capital branch and get in touch with one of our executives there. They will guide you through the entire application process

Locate a Branch

Online

Apply online through our website and get your loan approval instantly

Apply Now

Virtual Assistant

Take the help of our 24x7 virtual assistant to apply anytime and from anywhere

Phone Call

Call us on our customer care number at 1860 267 6060 between 9 am and 8 pm on Monday to Saturday to apply through your mobile phone. You can also request a call-back

Request a call back

Avail TATA Capital loans directly from WhatsApp

Apply via WhatsApp

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Business Loan for women

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What our customers say about us

It's fast, and especially the support staff is good.

JYOTIRMAY SHARMA

Business Loan | 25 Oct, 2024

My request was considered politely and solved. The service executive was good in her speech and interaction and was helpful.

SBJ ASSOCIATES

Business Loan | 03 Oct, 2024

Quick and efficient service.

SURAJ LAXMAN PATIL

Business Loan | 03 Sep, 2024

Keep up the fantastic performance.

MUTHUSAMY S

Business Loan | 29 Aug, 2024

As I wanted a new loan, you guided me on whom to meet. Thank you for your polite behavior. Very happy.

MOHAMMAD GHOUS GHOUS PASHA

Business Loan | 27 Aug, 2024

Excellent service from Tata Capital. I am impressed.

SARASWATI SERVICE STATION

Business Loan | 26 Aug, 2024

During the entire loan term, we didn’t face any issues with loan servicing from Tata Capital. Would definitely like to take a loan in the future if needed.

AGRAWAL M JAGDISH

Business Loan | 21 Aug, 2024

I am very happy with the services and will definitely avail myself of the services in the future.

SMITA DEEPAK SARAIYA

Business Loan | 13 Aug, 2024

Best communication provided for customers.

Pooran Mal Jangir

Business Loan | 02 Aug, 2024

Read All

Popular FAQs

You have the option to get a small business loan directly from the lenders or from any other institutions offering the same. Once you meet the requirements set by the lender, you will be able to avail of the loan in no time.

The duration of the small business loan depends on your eligibility to pay back the same. However, they are available from 12 months to a maximum of 48 months generally.

The answer depends on your definition of ‘poor’. Generally, the higher the credit score, the more chances you have of getting a small business loan. However, you might be able to get a loan at a higher interest rate.

The terms and eligibility criteria for a small business loan are usually the following:

Minimum age of 21 - 24 years

Having a solid business credit profile

Updated financial statements

The intent of your business loan

Small business loan interest rates vary greatly from lender to lender. The best method to choose an interest rate is to check all the conditions before confirming your choice with the lender.

There are multiple financial options available for small businesses. Some of them are:

Term loan

Start-up loan

Overdraft

Working capital loan

Merchant cash advance

Equipment Financing

Depending on the type of loan you require, you can choose the most relevant financial option.

To support women entrepreneurs there are several ways for them to get a small business loan. One of them is getting an exclusive business loan for women that offers flexibility in loan amounts, discounts on rates and quick disbursement.

The documents needed along with your loan application for a small business loan usually consist of the following:

Proof of age

Identity proof

Valid address proof

Financial statements

Loan history

Business registration proof

Business overview document

Before applying for a business loan, individuals and businesses must ensure they meet the required criteria to qualify for one. These include the following list:

Age of the applicant

Minimum turnover as set by the lender

Minimum time of operation of the business

If someone is unable to repay a business loan, they will find their credit scores taking a huge hit. In worst-case scenarios, they will even find their assets being taken over by the lender. Thus, it’s a good idea to determine how much you need before applying for a loan.

If you are a sole proprietor of the business, then a small business loan will affect your credit score. Failing to pay your dues on time can have adverse effects on your score, so it’s best to research how much you need.

To be eligible for a small business loan, a person must be at least 21 years old with a business vintage of at least two years and an upward business turnover trend.

Yes, you can get a loan to start a new business. However, you must have a strong credit history, adequate repayment capability, and a solid business plan.

Quick Links

Find the right Loan for you

Machinery Loans

If you’re into a manufacturing business, you may need to install the latest machinery or equipment in your factory.

You can apply for a machinery loan with us to fund the purchase of your business-related tools or equipment.

Know More

MSME Loans

MSMEs are the second-largest employer in India after the agriculture sector.

To help these MSMEs grow and flourish without being affected by financial hurdles, Tata Capital offers MSME loans or SME loans at competitive interest rates.

Know More

Overdraft Loan

If you’re unsure of the total loan amount that you may need for your business, you can avail of a business loan overdraft facility or an overdraft business loan.

With Tata Capital, you can get an OD loan for business of up to Rs.90 lakhs at an affordable interest rate.

Know More