Presentation Transcript

1. Business Loan in India 3 Understand Term Loans & Overdraft Facilities (2025 Guide) Choose the right funding solution for your startup, MSME, or growing business. This guide will help you understand the key business loan options available in India, including term loans and overdraft facilities, to support your capital needs and growth plans.

2. Introduction to Business Loans in India Purpose of Business Loans Loan Types Keywords Business loans help startups, MSMEs, and established companies raise capital for operations, expansion, working capital, or equipment purchase. Options include secured and unsecured business loans tailored to various business needs and stages. business loan in India MSME loan unsecured business loan small business loan

3. Why Your Business Needs a Loan Expand Operations Open new branches or increase capacity to meet growing demand. Upgrade Technology Purchase machinery or modernise equipment for efficiency. Manage Working Capital Handle day-to-day expenses and seasonal fluctuations smoothly. Launch New Products Invest in product development and marketing to grow your business.

4. Types of Business Loan Products Term Loan Overdraft Facility Other Loans Long-term funding for asset purchase and expansion. Flexible credit line linked to business income. Working Capital Loan Loan Against Property Invoice Financing Merchant Cash Advance

5. What is a Term Loan? Definition Ideal Uses A lump-sum loan for a fixed tenure with fixed or floating interest rates. Best suited for long-term investments like buying assets or expanding premises. Repayment Repaid via monthly EMIs over 1 to 10 years.

6. Features & Benefits of Term Loan Loan Amount Interest Rates Up to ¹50 lakhs or more based on eligibility. Fixed or reducing term loan interest rates available. Tenure & Tax Benefits Purpose Tenure ranges from 1 to 10 years with tax benefits on interest paid. Suitable for capital expenditure and business growth.

7. What is an Overdraft Facility for Business? Definition Interest Payment Allows withdrawal of funds as needed from current account up to an approved limit. Interest is charged only on the amount actually used, not the full limit. Limit Basis Overdraft loan facility limit is linked to business income or turnover.

8. Features & Benefits of Overdraft Facility Interest on Used Amount Flexible Repayments Cash Flow Management Quick Renewal No fixed EMIs; repayments can be made as per cash flow. Facility can be renewed quickly every 12 months. Pay interest only on utilised funds, saving costs. Helps manage irregular cash flows and seasonal needs.

9. Term Loan vs Overdraft 3 Detailed Comparison Feature Term Loan Overdraft Facility Loan Amount Fixed lump sum Credit limit (reusable) Repayment Mode Monthly EMI Flexible repayment Interest Type On full loan amount Only on utilised limit Tenure 1 to 10 years Renewable every 12 months Ideal For Asset purchase, expansion Daily cash needs, working capital Collateral May or may not require Often linked to collateral or income

10. Eligibility & Documents for Business Loan Eligibility Criteria Documents Required Indian citizens aged 21-65 PAN card, Aadhaar card Business vintage: 1 year (unsecured), 3 years (secured) Income Tax Returns (last 2-3 years) Minimum annual turnover varies by lender Bank statements (6-12 months) GST returns, Business registration proof Address and ID proofs

11. Thankyou Contact No. :+91-9797971876 Website : https://www.investkraft.com/ Email Id. :care@investkraft.com