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Business Loans

How to Get Startup Business Loans Online?

The article takes the reader through understanding the intricacies of loan applications pertaining to start-ups.

Knowing, skills, and experiences can help you build a business, but you cannot start without capital investment. To start a business, you must have a unique idea and develop a product or service in need.

Once you make a business framework, you need to apply for start-up business loans. If you have funds in your hands, then you can quickly start and expand your business without any trouble.

But finding suitable startup business loans can be a daunting task, and you can approach banks, government, and capital investors for the same. Before you apply for startup business loans, you need to know about start-ups.

What Is a Start-up?

Start-ups are the newly formed companies based on perceived demand, and they have some unique products and services that can address a specific market gap. There is no particular definition available for a start-up, but businesses that fall under this category mainly offer something new based on technology.

They try to create a platform to minimise the task of the professionals, and some of them can also be for novel causes. For example, you can find some start-ups that do not have any product and service and do not even generate sales.

There is no definition for a start-up, but according to experts, a business can be considered a start-up when it hits a certain size or is acquired by a large company or corporation.

In the case of a start-up, founders mostly generate ideas for their products, and they always work in the proof-of-concept stage to develop their products through feedback from their customers.

They are business leaders, and they can scale their company with their brainstorming ideas and marketing strategy. For example, Mark Zuckerberg did not earn any revenue till 2009, and he founded his company Facebook when he was a student at Harvard University.

Now, he is one of the wealthiest people in the world. So, a start-up doesn’t need to get the funds if it generates profits, and you can get funding for your start-ups if your company has the potential value based on your profits. If you cross the profit margin of $1 billion, your start-up will be considered a unicorn.

Apart from the conventional funding process, you can also bootstrap your start-up and run your business by collecting funds from your friends and family funds. But it is not a wise idea because you can face some issues while you need emergency funds. In this case, you can approach angel investors for startup Business loans.

Angel investors and venture capitalists can fund your project or start-up, but they will ask for certain equity. So, if you know that your business ideas can boost the sales in coming years, you should not lose your shares or equity at the initial stage of your business.

You can indeed face some issues while setting up your start-up because you need office space, a team of workers, and equipment for your business. In this case, you can search for incubators. The government or non-profit organizations fund these incubators, and you can use their office, equipment, and team to set up your business.

You can also go through the Registration of Company in Dubai

Types of start-ups available:

Different types of start-ups are available in the market, such as scalable start-ups, lifestyle start-ups, small and large business start-up, and social and lifestyle start-ups.

  • Scalable start-ups are mostly based on technology, and these start-ups can avail fundraising for business from investors by showing their scalable ideas. For example, Google, Facebook and Twitter are some of the scalable tech startups.
  • Small start-ups are self-funded businesses that might have a website but do not have any mobile application. You can find local stores, bankers and travel agents working as small start-ups.
  • You can use your hobby to set up a business and bring something new as a lifestyle start-up. For example, online dance and music schools, and Ed-tech companies are some of such lifestyle start-ups.

Tips to Get Startup Business Loans:

Startup Business Loans: How to Apply for the Same?

There are approx 40,000 start-ups available in India, which have many private and debt funding options. Start-ups in India are categorized as small, medium, and micro-enterprises, and it has a separate department called MSMEs.

The best way to get startup business loans is to approach SIDBI or India’s Small Industries Development Bank. You can get such loans with reduced interest rates. SIDBI offers such startup business loans under different subsidised categories such as Bank Credit Facilitation Scheme run by the National Small Industries Corporation (NSIC), Pradhan Mantri Mudra Yojana (PMMY) operated by the Micro Units Development and Refinance Agency (MUDRA), Credit Guarantee Scheme (CGS) by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and Standup India by SIDBI.

You can avail the facilities under the above schemes as follows:

Bank Credit Facilitation Scheme: You can apply for a startup business loan from a bank registered under this scheme, and you can get the maximum tenure of a start-up business loan of 7 to 11 years.

Pradhan Mantri Mudra Yojana (PMMY): If you have a business based in the service sector, then you can apply for a business loan under this category, where you can find three divisions such as Shishu, Kishor, and Tarun. You can avail of Rs.50,000 to Rs.10 lakh as a business loan.

Credit Guarantee Scheme (CGS): Service industries, excluding educational, agricultural, retail and self-help groups, can apply for a start-up business loan. You can borrow up to two crores under this scheme.

Standup India. You can avail of 10 lakhs to 1 crore under this scheme as a start-up business loan, but this scheme is applicable for short-term loans. You will get a maximum repayment schedule of 18 months for such loans.

Eligibility for Getting Business Loans for Start-UPS:

  • Applicant should not be less than 21 years. The upper age limit is 65 years.
  • Indian citizen.
  • You must have a business plan.

Click here to calculate your startup cost using startup cost calculator.

Documents required to get a startup business loan

  •  2 Passport sized photographs
  • Proof of identity (PAN Card, Passport, Aadhaar Card, Voter’s ID, Driving License)
  • Address proof (Driving License, Aadhaar Card, Postpaid Phone Bill, Voter’s ID)
  • Last six months’ bank statement
  • Proof of income (IT Returns or salary slips)
  • Signature proof (PAN card or Passport)
  • IFSC Code Proof (Cancelled/scanned cheque, copy of passbook’s front page of a bank account)


People can use advanced technology to build start-ups and sell them to large businesses. Amazon and Uber used to these  start-ups that have the potency to grow. You can also find charitable start-ups that do not generate sales and revenue. These companies are founded by good people who aim to serve the community free of cost.

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