Bajaj Finserv Business Loan
Headquartered in Pune, Bajaj Finserv was founded by Jamnalal Bajaj. It is a part of Bajaj Holding and Investment Limited and focuses on lending, asset management, wealth management, and insurance. In 2009 Bajaj Holding was registered as a Non Banking Financial Company (NBFC) as per RBI Regulations.
Bajaj Finserv offers fast Business Loans designed exclusively for self-employed professionals, self-employed non-professionals, traders, manufacturers, service providers, and women entrepreneurs.
Why Choose Bajaj Finserv Business Loan?
Bajaj Finserv offers customised Small Business Loans that can be disbursed as fast as 24 hours. The pre-approval facility is the main attraction.
Business houses choose Bajaj Finserv Business Loan for the following reasons:
- Business Loans by Bajaj Finserv are affordable.
- They come packed with a Flexi Loan facility with flexible repayment options.
- The document is minimal.
- You also get online access to the loan account.
- The application is followed by quick and easy processing.
- There are no hidden charges.
- The rate of interest is competitive.
Benefits & Features of Bajaj Finserv Business Loan
Purpose of loan:
Bajaj Finserv Business Loan can be applied for working capital requirements like building inventory for day-to-day operations, payment of essential bills and salaries, etc. It can also be used for building infrastructure, upgrading existing machinery, purchasing new machinery, fulfiling business cash flow needs, leasing bigger office premises, renovating office premises, hiring seasonal employees, etc. In totality, it can be used for any purpose that could take the business to the next level.
Quantum of loan:
The Bajaj Finserv Business Loan can be availed for up to 30 Lakh amount.
The loan tenure can range from 12 months to 60 months. Besides, you get a flexi repayment option. The flexi loan facility is one of the key USPs of Bajaj Finserv Business Loan. Herein you can withdraw amount multiple times as per your needs, and interest is applied only to the extent of funds utilisation. Only interest can be paid in EMI, and the principal can be paid at the end of the tenure. Part payment depending on the cash flow of the company can be made, and there are no charges levied for this.
Interest is applied at a rate starting from 18% p.a. The interest is applied only on utilised amount.
No collateral security is required to avail of a business loan from the NBFC.
Processing fee is up to 2% of the loan amount (exclusive of applicable taxes).
If an individual avails the loan, then no prepayment charges are applied. For others, 4% on balance outstanding on the day of pre-closure is applied. For part prepayment, 2% of the outstanding loan amount is applied. The prepayment is allowed only after the payment of one EMI.
Types of Bajaj Finserv Business Loans
Bajaj Finserv Business Loans are customised as per individual requirements. These loans can be availed by MSME/ SME sectors and self-employed professionals like doctors, engineers, and chartered accountants. Different types of Bajaj Finserv Business Loans are:
- Commercial Loans
- Loans for Traders
- Working Capital Loan
- Loan for Manufacturers
- Loan for Doctors
- Machinery Loan
- Loan for Service Enterprises
- MSME/ SME Loan
- Loan for Women
- Pre-Approved Business Loan
- Channel Financing
- Start-Up Business loan
- Corporate Finance
Bajaj Finserv Working Capital Business Loan
A working capital business loan is a business financing for day-to-day financial capital or short-term operational expenses. Any business unit can apply for Bajaj Finserv Working capital business loan for the following requirements:
- raw materials
- overhead costs like rent, salaries and utility bills
- cash crunch due to delayed payments
You can apply for Working Capital Loan from Bajaj Finserv for up to 30 lakhs. The amount is lent with the flexi loan facility. It allows multiple withdrawals as per your requirement, and the interest will be applied only to the extent of loan utilised. For instance, the loan amount sanctioned is 30 lakh, out of which only 6 lakh is utilised. Interest will be applied on 6 lakhs only, thus saving the interest out-go on the 24 lakhs.
Repayments can be made flexibly too, and there are no prepayment charges. Interest to be paid in the form of EMIs, and the principal can be paid at the end of the loan tenure.
No collateral security is required.
Bajaj Finserv Machinery Loan
The Machinery Loan can be utilised to purchase, upgrade, or replace equipment or machine. The maximum quantum provided under the Machinery loan is 30.00 lakh. It can also be used to train employees to use specialised machines. The tenor can range from 12 months to 60 months. You enjoy the flexi loan facility. Besides, no guarantor or collateral security is required. A pre-approval offer is available.
Bajaj Finserv Business Loan for Women Entrepreneurs
If you are a woman entrepreneur, you can avail Bajaj Finserv Business Loan up to 30 lakh. You can use funds for business expansion, purchasing machinery, or for scaling up your business and catering to new markets.
The features & benefits include:
- Tenure ranging from 12 months to 60 months.
- No collateral required.
- If availed as pre-approved, the amount will be disbursed within 24 hours.
- Online access to the loan account is available.
- Can be availed as supply chain finance.
- Flexi loan flexibility lets you save up to 45 % on interest costs. You can use funds based on your needs.
- Flexible repayment option.
- Prepayment is allowed.
- No collateral is required.
Bajaj Finserv MSME/ SME Loan
Bajaj Finserv MSME/ SME Loan is a perfect answer to your business' financial needs. A business unit can apply for MSME/SME loan up to 30 Lakh for following:
- building & maintaining infrastructure
- working capital needs
- new plant & machinery
To apply for this loan, the business unit must be operational for at least 3 years. The owner should be between 25 to 55 years of age. The business? IT returns must be filed in the previous year.
Bajaj Finserv Business Loan for Doctors
This is an exclusive Business Loan for Doctors. The offer is a loan designed to ensure hassle-free and fast funding for Doctors. The funds can be utilised for expanding practice, purchasing the latest medical equipment, software, training staff, etc.
The quantum of loan for Business Loan for Doctors is extended up to 37 lakh> The loan can be disbursed within 24 hours.
Post Qualification Experience
Minimum of 2 years
Minimum of 5 years
Ayurvedic and Homeopathic Doctors
Minimum of 6 years
*Must own a house/ clinic to apply for a loan
Minimum of 15 years
*must own a house or clinic to apply for a loan
Bajaj Finserv Commercial Loan
Bajaj Finserv Commercial Loan can be availed for up to 30 lakh. The funds can be availed online within 24 hours, subject to meeting eligibility criteria. You do not need any collateral to avail of the loan. You get total flexibility in choosing repayment structure as well as loan tenure. With Flexi Loan facility, you also save a lot on interest costs.
The commercial loan funds can be used for:
- Buying new tools
- refilling inventory
- growing infrastructure
- increasing working capital.
Bajaj Finserv Business Loan for Traders
Bajaj Finserv Business Loan for traders is a customised credit offering for businesses looking out to fund their day-to-day financial needs to finance the purchase of goods and services, including new equipment. The funds can also be used to meet working capital needs or furnishing/ renovating business premises.
The loan is offered as an unsecured loan with a flexi loan facility. The amount will be processed online within 48 Hours.
Bajaj Finserv Business Loans for Manufacturers
This is an exclusive business loan for manufacturers' overhead expenses, cost of inventory, raw materials, and lapses in working capital requirements.
Clubbed with the Bajaj Finserv flexi loan facility, the business loan for manufactures eases cash flows of a business efficiently. You can use the amount as required and cut the interest cost on loan. You can apply for this loan product and fill your repositories with the required materials to support maximum efficiency and production. The principal amount can be paid at the end of the loan tenor.
Bajaj Finserv Business Loan for Service Enterprises
A good infrastructure, including the required IT & equipment, are prerequisites for the success of a service-based business. Whether you are running a hospitality business: an owner of a hostel or restaurant, or running a boutique, software development company, a media service, a courier company, etc, Bajaj Finserv business loan for service enterprise will cater to your financial business needs.
You can apply online for a Business Loan up to 30 Lakh for up to 6 years. The loan is offered without any collateral. The repayment structure is also flexible, and you can repay the principal amount at the end of the tenure.
Bajaj Finserv Channel financing
Whether you are a dealer or a merchandiser, you can apply for Bajaj Finserv Channel financing and expand your network & channel partnerships. Using the credit facility, you can pay the suppliers in advance and fill your inventory with a range of branded goods.
The loan is available for up to 30 Lakh without any collateral. It is fast and easy to avail of Bajaj Finserv Business Loan.
Bajaj Finserv Start-Up Business Loans
Bajaj Finserv offers easy, fast, and hassle free Business Loans to Start Up Units. The loan is offered for a maximum of 30 lakh for meeting all types of business expenses such as overhead bills, purchase of inventory, infrastructure costs, etc.
However, to apply for the loan, the Startup needs to fulfil a minimum business vintage of 3 years in India. You can apply online and get the disbursal within 24 hours. The loan is unsecured and offers an ample amount of repayment flexibility.
Bajaj Finserv Corporate Finance
Bajaj Finserv Business Loan is a clear answer to your corporate financing needs. It indeed is an ideal loan for wealth distribution and return generation.
With adequate credit support, you can facilitate:
- Financial planning
- Raising funds
How to Apply for Bajaj Finserv Business Loan
It is completely easy and convenient to apply for Bajaj Finserv Business Loan. You can use any of the following modes to apply for the loan.
- By filing a loan application online. On completion of the application, representative of Bajaj Finserv will contact you along with pre-approval offers.
- By sending SMS on their toll-free number. Subsequent to sending SMS representative of Bajaj Finserv will contact you along with approval on offer.
How to Apply for Bajaj Finserv Business Loan through Mymoneymantra?
Applying for Bajaj Finserv Business Loan through MyMoneyMantra?s website is a good option since the procedures that follow after filing the application online are taken care of by MyMoneyMantra free of cost. The customer can concentrate on their business while MMM will ensure the best deal.
To apply for Bajaj Finserv Business Loan through MyMoneMantraone follow following steps:
- Go to MyMoneyMantra.com
- Fill the loan application form and share the required information.
- An OTP will be generated, and you will get access to the best business loan offers according to your profile.
- Now select the lender of your choice from the options provided.
- Herein you click on apply or connect with Bank and do the required.
- Now a MyMoneyMantra representative will follow and answer your queries if any. They will guide through documentation procedures and will be your guide until the loan disbursal.
Documents Required for Bajaj Finserv Business Loan
- Duly Filled Application for Business Loan.
- 2 Photographs of the applicant
- Any one of the Photo ID proofs such as Passport, Aadhar Card, Voter?s ID, Driving Licence, etc
- Any one of the Address proofs like latest Utility bills, valid rental agreement, Voter's ID, Aadhar Card, etc.
- Business Proof: GST Registration, Certificate of Incorporation, Partnership Deed, Audited Balance Sheet, and Profit and Loss Account, etc.
- KYC documents of the promoters.
- Statement of Bank Accounts and sanction memorandum of existing credit facilities
- Qualification proof for professionals
Eligibility for Bajaj Finserv Business Loan
Individual lending institutions have guidelines to determine the eligibility of the customer for Business Loan. The guidelines set by Bajaj Finserv to assess the eligibility for Business Loans are as follows:
- Self-employed professionals like Allopathic Doctors, Company Secretaries, Engineers, and Architects who are practicing can apply for the loan. Proof of qualification should be submitted.
- Self-employed non -professionals like traders, retailers, proprietors, and service providers can apply for the Bajaj Finserv Business Loan.
- Partnership firms, Limited Liability Partnership, Private Limited Companies, and closely held limited companies can apply. Depending on the profile, other constitutions on case to case basis could also be eligible for the credit facility.
- The age of promoters of the business should be between 21 to 55 years.
- The business should be existing for at least 3 years.
- Income Tax Returns should have been filed at-least for the last 1 year.
Factors Affecting Bajaj Finserv Business Loan Eligibility
The main factors that affect the eligibility for Bajaj Finserv Business Loan are as follows:
Income: The business entities should have been making a profit for the past one year, and self-employed professionals should have sufficient turnover.
Age: The age of the promoters should be between 21 to 55 years.
Relationship with the Bank: Loyal customers of Bajaj Finserv will be given preference while processing the loan. Maintaining a cordial relationship with the Bank plays a very important role. Existing customers will be given pre-approved offers.
Loan Repayment: The track record in respect of past loan repayments is the index to determine the credibility of the applicant. If the track record is good, then the chances of getting the loan will be better.
Too Many Loans: Having too many loan commitments will clearly indicate the financial stress of the applicant, and that could be a valid reason to reject the application.
Credit Score: The credit score determines eligibility in terms of the repayment capacity of the applicant. Nowadays, even before verifying the documents, a credit score is evaluated. A credit score is a scale to judge one's credibility.
Factors Affecting the Credit Score
Increased Number of Unsecured Loans ? Maintaining a balance between secured and unsecured loans is a must. Too many unsecured loans indicate the financial instability of the applicant. More number of unsecured loans will bring down the credit score.
Multiple Loan Applications ? Too many inquiries from different banks for loans will reduce the credit score of the applicant. So, one needs to take care not to approach different banks at the same time for a loan.
Delayed Payments ? With a good credit score, it is easy to get loans from banks. Prompt repayment of earlier loans is a good indicator. So always ensure to have sufficient balance in the bank account on the EMI due date so that the payments are not delayed. Delayed payments will reduce the credit score.
Usage of Credit Limit ? Credit Card used wisely, and dues paid promptly is the ideal way a Credit Card Limit should be dealt with. Simply because a revolving limit is available, one should not indiscriminately use the card. Keep track of the usage of the card and, as far as possible, pay up the entire dues instead of paying the minimum amount. The interest out-go on the balance amount will be very high, which will prove to be very expensive. Usage of Credit Card judiciously will fetch good scores.
Common Reasons for Rejection of Business Loan Proposal
Credit Score is one of the primary parameters to assess the creditworthiness of a borrower. It is thus essential to ensure a good credit history. A red flag in your credit information report can impact a lender's lending decisions for as long as seven years.
The data contained in a credit report is a reflection of the applicant's attitude towards borrowings from lending institutions. The report serves as a guide to any lender's credit decision. Naturally, remarks like 'Account Written Off? or ?Amount Settled? bring down the reputation of the applicant and can become a reason for loan rejection.
However, at times, the loan application is declined despite the good score.
For example, if you are very disciplined in money matters but have been a co-borrower or a guarantor to a person with a low credit score, it will eventually hurt your chances of availing a loan. The role of a guarantor in a finance arrangement is very crucial since he or she will be the recourse for the outstanding if the applicant fails to pay the dues. Similarly, if you are considering to add a co-borrower or a guarantor, the credit report of the person is equally important.
Next, the repeated loan inquiries and multiple unsecured loans reflect that you are hard-pressed with financial gaps and may not be able to make repayments at some point in time. The lenders do not prefer proposals that carry high-risk of repayment.
If you take care of the reasons highlighted above, your loan application processing will be smooth and hassle-free.
How to Increase The Bajaj Finserv Business Loan Eligibility?
Good credit history: A good repayment track record or credit history is a must for getting loans from banks. It is always better to keep in mind that if the financial services of the banks have to be utilized without going through too many procedures payment of Credit Card Bills and Loan EMIs are mandatory. With this, the credit score will improve, and the risk for the banker in lending minimizes.
Loan Tenure or Period: Choose a longer repayment period to decrease the EMI amount so that the loan to net salary percentage increases and the chances of the loan being considered are better.
Credit Worthiness: Cibil score is the scale to measure one's creditworthiness. Hence aiming to always keeping the credit score higher is recommended. The credit score stipulated for the Bajaj Finserv loan is 750 and above. The loan will not be sanctioned to the applicant whose credit score is less than 750. The credit score of the promoters also should be above 750.
Tips to improve one?s credit history
Maintaining a good credit history is very important to qualify for a loan. Good credit history not only helps in improving eligibility, but it also makes your application a powerful one, and you can negotiate for the best interest rate and loan deal.
Too many loan inquiries in a short span will influence the credit history. The credit score will decline with growing enquiries. It is better to avoid frequenting lending institutions in search of the best deal to avail of a loan.
Applicants without a credit history are also not preferred by the lenders. For, the lending institutions cannot gauge the credibility and creditworthiness of the applicant. Hence, the first time borrowers must create a credit history by borrowing small loans or using credit cards prior to opting for a big-ticket loan.
Calculating Instalment with Bajaj Finserv EMI Calculator
Using an Online EMI Calculator, you can conveniently determine the monthly instalment of your loan. All you need to do is fill parameters such as loan amount you intend to avail, the loan tenure, and the interest rate.
Enter the following variables in the calculator:
- Loan quantum
- Rate of Interest
- Repayment period
Click the calculate button, and you will get the value of EMI.
Try different combinations until a suitable EMI is arrived at.
If you use the calculator before applying for a loan, you can conveniently assess the best combination of loan amount and EMI according to your repayment capacity.
How to use Bajaj Finserv EMI Calculator on MyMoneyMantra?
- Visit the MyMoneyMantra website.
- Selecting EMI calculator Under Financial Tools on the right corner of Home Page.
- Fill the loan parameters.
- EMI will be calculated instantly.
Try different permutations and combinations. This will help you reach at affordable EMI.
Advantages of pre-paying Bajaj Finserv Business Loan
Bajaj Finserv does not collect prepayment charges for individuals who avail of Business Loan. For others a prepayment charge of 2% on the principal outstanding will be collected.
If funds are available, it is prudent to pre-close the loan since one can save a lot on the interest out-go. Compare the saving made on interest by pre-closing versus the penalty for the advance payment. If the saving on pre-closure is considerably high, then it is better to go for pre-closure.
Compare saving in interest out-go versus the penalty collected. If the saving is considerably high, then go ahead with prepayments whenever there is surplus cash. The interest out-go also reduces since the period of the loan is reduced.
Closing the loan account before maturity is a good sign of prosperity and will be appreciated by the lenders. It will boost your credit score and increase your creditworthiness.
EMI vs. Pre-payment-Pattern
Bajaj Finserv collects 2% on the outstanding principal balance whenever a part payment is made to the loan account. This is considerably less when compared to the cost cut towards the interest on account of reduction in tenure. So, a prudent business person would pre-pay towards the loan to cut down the price of the loan. On part-payment of the loan amount, the Equated Monthly Instalments can be restructured.
Frequently Asked Questions
#1. What makes Bajaj Finserv Business Loan a recommended option?
Whether the business is in its initial stage or has been in existence for a long time, additional finance will be required to keep up the momentum of the business. The Bajaj Finserv Business Loan can help you bridge any working capital mismatch or for building infrastructure or to take your business to the next level. Bajaj Finserv is a good choice since they offer small Business Loans up to 30 Lakhs. These are disbursed as fast as 24 hours. Even the pre-approval facility is also available.
#2. Can the credit limit be enhanced for Bajaj Finserv Business Loan?
Yes, the limit can be enhanced on Bajaj Finserv Business Loan. This depends on the eligibility at the time of requesting for such enhancement. Also, a new copy of the documents might have to be submitted.
#3. What is the difference between the line of credit and term loan?
A Term Loan is a specific purpose loan. Herein the whole amount sanctioned is disbursed to the borrower?s bank account. There is an option for prepayment, but there is no option for multiple withdrawals. Loan repayments are made as equated monthly instalments, set as per repayment schedule.
While a Line of Credit is sanctioned, and the amount stays in the linked account offered by a lender. The borrower can utilise the amount as per requirement. Multiple withdrawals are allowed, and interest will be applied only to the extent of funds utilised. The limit will be renewed every year. There is an option to pre-pay when on the availability of surplus funds. The borrowers pay interest on the used amount every month.
#4. How does the line of credit work?
In a line of credit, an eligible loan amount will be fixed as a limit. Withdrawals to the extent of the limit can be made any number of times as per one's requirement. Interest will be charged on the amount utilised. Part payments can be made when surplus funds are available. The same can be withdrawn when required. There will be a fixed amount available throughout the tenor. The limit might drop (dropline facility) along with the tenor depending on the cash flow or can be fixed throughout the tenor. Interest has to be paid as and when due and the principal is repaid at the end of the tenor.
#5. Is prepayment allowed for Bajaj Finserv Business Loan?
Yes. Prepayment is allowed with a penalty of 4% of the outstanding principal amount on the day of prepayment of the loan. Part prepayment is allowed with a penalty of 2% on the outstanding principal amount on the day of part prepayment. Part prepayment is allowed only after payment of 1 EMI.
#6. Are there any benefits in having a Current/ Saving account for Business Loan?
Yes, one can get the benefit of easy and quick documentation if the Current/ Saving Account is there with the lender. Standing Instructions for a debit of EMI through the account can be opted for.
#7. What are the different kinds of SME Business Loans by Bajaj Finserv?
Bajaj Finserv offers customised loan products to meet all types of SME business funding requirements. For example, you can apply for Bajaj Finserv Working Capital Loan for bridging the working capital gap; Business expansion loan to expand manufacturing facilities, geographical expansion, increase in the product line, technology upgradation, etc. Margin Money Loan to provide for the margin that has to be brought in for the purchase of machinery, for LC/ BG, and for purchase of business premises.
#8. What are the documents required for Bajaj Finserv Business Loan?
The documents required for Bajaj Finserv Business Loan are-
- Duly filled application form.
- 2 passport size photographs
- Proof of residence address
- Proof of business address
- Photo ID proof
- Proof of Business like VAT/ IT Returns/ Balance Sheet/ Profit and Loss Statement etc
- KYC documents of promoters
#9. Why take a loan from Bajaj Finserv?
The rate of interest charged for the Bajaj Finserv Business Loan is 18% onwards, which is highly competitive. If you are paying a higher rate of interest for your existing business loan, you can also opt for the Bajaj Finserv Balance Transfer option.
#10. What is the minimum and maximum loan tenure for Bajaj Finserv Business Loan?
The minimum loan tenure is 12 months, and the maximum loan tenure is 60 months.
#11. What is the age limit prescribed for Bajaj Finserv Business Loan?
The age limit for Bajaj Finserv Business Loan is between 21 years to 55 years.
#12. What is the processing fee charged by Bajaj Finserv?
The processing fee charged is up to 2% of the loan amount. The applicable taxes will also be levied.
#13. What are the prepayment charges prescribed by Bajaj Finserv?
For individuals with a business registered, there is no pre-closure charge. For others, 4% of the balance outstanding on the day of pre-closure will be collected. For part prepayment, 2% of the principal balance outstanding on the day of part-pre-payment will be collected.
#14. Who can apply for Bajaj Finserv Business Loans?
The following categories can apply for Bajaj Finserv Business Loans-
- Self-employed professionals like allopathic doctors, chartered accounts, architects,
engineers etc. can apply for the loan
- Self-employed non-professionals, proprietorship/ partnership firms, limited liability
partnership, private limited companies can apply for the loan.
- The applicant should have been in the profession/ business for at least 3 years.
- The applicant should have filed IT returns for at-least 1 year.
- The age of the promoters should be between 21 years to 55 years.