Business Loan Guide

Everything you need to know about business loans - from eligibility to application

What is a Business Loan?

A business loan is a credit facility offered to self-employed individuals, professionals, private companies, partnership firms, MSMEs, etc. for financing their working capital requirements, capital expenditure requirements and other business-related activities. It can be secured or unsecured, depending on the lender's requirements. With flexible terms, they help businesses manage cash flow and growth smoothly.

Why Get a Business Loan?

Expand Your Business

Manage Working Capital

Purchase Equipment

Increase Inventory

MSME Classification

For priority sector loans, your business is classified as a Micro, Small, or Medium Enterprise based on your Udyam Registration Certificate. This classification depends on your investment in plant & machinery and your annual turnover.

Micro Enterprise

Investment:Up to ₹1 Crore
Turnover:Up to ₹5 Crore

Small Enterprise

Investment:Up to ₹10 Crore
Turnover:Up to ₹50 Crore

Medium Enterprise

Investment:Up to ₹50 Crore
Turnover:Up to ₹250 Crore

* As per Ministry of MSME, Government of India notification

Our Products

Instant MSME Loan

Unsecured

UP TO

₹50 Lakhs

48 months • starts at 11% p.a.

Instant Business Loan

Unsecured

UP TO

₹50 Lakhs

48 months • starts at 11% p.a.

Loan Against Property

Collateral Based

UP TO

₹1 Crore

60 months • starts at 11% p.a.

for businesses*

How to Apply?

1

Personal Details

Share your basic information including name, contact details, and PAN card

2

Business Details

Tell us about your business, GST registration, and years in business

3

Verify Income

Upload bank statements and GST returns to verify your income

4

Get Offers

Receive instant loan offers tailored to your business needs

Eligibility Criteria

MSME Loan

  • Age: 21 years at application, 65 at maturity
  • Minimum Years in Business: 1 year
  • Credit Score: 650 or above
  • Registered MSME with valid Udyam Registration

Business Loan

  • Age: 21 years at application, 65 at maturity
  • Minimum Years in Business: 1 year
  • Credit Score: 650 or above
  • Eligible Entities: Businesses and Individuals

Loan Against Property

  • Age: 21 years at application, 65 at maturity
  • Minimum Years in Business: 1 year
  • Property ownership with clear title
  • Stable income source for repayment

Documents Required

  • PAN Card
  • Aadhaar Card
  • Business Registration Proof (GST, Shop Act, etc.)
  • Income/Turnover Proof (Bank Statements & GST Returns for last 12 months)

5 Things to Know

Interest Rate

  • Business loan interest rates vary across lenders
  • Check rates from various lenders before applying
  • Opt for the lowest interest rate to reduce credit cost

Turnaround Time

  • Know the approval and disbursal time for your loan
  • Faster disbursal lenders are usually preferred
  • Time depends on loan type and collateral

Credit Score

  • Score of 700+ increases approval chances significantly
  • Higher scores may get you lower interest rates
  • Low scores can lead to rejection or higher costs

Processing Charges

  • Processing fees vary based on your profile
  • Try to negotiate for the lowest processing fee
  • Check for any hidden charges or penalties

Collateral

  • Many lenders offer loans against collateral/security
  • Can include property, stocks, or business assets
  • Collateral-backed loans may have lower interest rates

Understanding APR vs Interest Rate

Interest Rate12%
Interest Only
APR (True Cost)13%
Interest + Fees

Why APR is higher:

APR includes the 12% interest rate PLUS the 2% processing fee, giving you the true annual cost of your loan.

💡 Always compare APR, not just interest rates, when choosing loans!

Key Fact Statement (KFS)

The KFS is the most important document provided by the lender before you accept a loan. It summarizes all costs.

Annual Percentage Rate (APR)

This is the total cost of the loan, including interest and all fees, expressed as a yearly percentage. Always compare APRs, not just interest rates.

All Fees Explained

The KFS must list every single fee, such as processing fees, documentation charges, and any prepayment penalties.

Your Data Rights

Purpose Limitation

Your data is collected with your explicit consent and used only for credit assessment.

Data Storage in India

All your data is stored on servers located within India, as mandated by the RBI.

Right to Be Forgotten

You have the right to revoke consent and request data deletion from our systems.

FAQs

© 2025 Krux Finance. All Rights Reserved. Krux Finance is a brand owned and operated by Raganan Technologies Private Limited. CIN: U63111RJ2025PTC107336 | Registered Office: C 27 M.BHEEM S.NAGAR, MAI B-IV, Kota Jn., Kota, Kota- 324002, Rajasthan
RBI CompliantRBI Compliant