Whether you're running a small startup, an expanding MSME, or a well-established enterprise, business loans can be the fuel your venture needs to grow. But with so many loan types in India, how do you choose the right one?
In this guide by Vizzve Finance, we break down the most common types of business loans, their features, and how they help entrepreneurs like you scale confidently.
💼 1. MSME Loans (Micro, Small, and Medium Enterprises)
Designed for small business owners and entrepreneurs, MSME loans are supported by government schemes such as CGTMSE or Mudra Yojana.
Loan Amount: ₹50,000 to ₹10 crore
Purpose: Expansion, machinery, inventory, marketing
Ideal For: Startups, small manufacturers, service businesses
✅ Apply via Vizzve to compare MSME loan offers from multiple banks/NBFCs.
🔁 2. Working Capital Loans
A lifeline for managing day-to-day operations, this loan helps cover short-term needs such as payroll, rent, raw material, and inventory costs.
Tenure: 6 to 18 months
Collateral: Often unsecured
Ideal For: Retailers, traders, seasonal businesses
🏭 3. Term Loans
These are long-term loans used for fixed asset purchases like land, buildings, or large-scale machinery.
Loan Amount: Up to ₹20 crore
Tenure: 1 to 10 years
Interest Rate: Fixed or floating
Ideal For: Business expansion, asset acquisition
🧾 4. Invoice Financing (Bill Discounting)
If you have unpaid customer invoices, this loan type lets you borrow money against receivables, improving cash flow.
Instant liquidity
Ideal For: B2B businesses, exporters
Collateral: Not needed in most cases
🛒 5. Merchant Cash Advance (MCA)
Best for businesses with consistent card sales or online transactions. Repayment is linked to a percentage of your daily sales.
Quick approvals
Ideal For: E-commerce sellers, retailers, restaurants
Flexible repayment
🏗️ 6. Equipment or Machinery Loan
If your business needs specialized equipment or production tools, this loan finances 100% of the purchase cost.
May offer tax benefits
Often comes with lower interest
Collateralized by the equipment itself
🌐 7. Business Line of Credit
A flexible, revolving credit facility — borrow what you need, when you need it, and only pay interest on the used amount.
Great for cash flow gaps
Reusable credit limit
Ideal for: Established businesses
🔐 How Vizzve Makes Business Loans Smarter
Access RBI-registered lenders only
Compare multiple business loan products instantly
No collateral required for most MSME and working capital loans
Transparent processing, quick approvals
🙋 FAQs
Q1. What is the easiest business loan to get in India?
MSME loans and working capital loans are among the most accessible, especially when applying via fintechs like Vizzve.
Q2. Can I get a business loan without collateral?
Yes, many MSME and working capital loans offered by Vizzve partners are unsecured.
Q3. What is the interest rate on business loans?
Typically between 10% to 24% p.a., depending on creditworthiness, type, and lender.
Q4. Can a new business apply for a loan?
Yes. With a sound business plan and proof of income, even new businesses may qualify for startup loans or Mudra schemes.
Q5. How fast can I get a business loan via Vizzve?
Depending on documentation, approval can happen within 48–72 hours.
published on 2nd july
Publisher : SMITA
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