What is Secured Business Loan?
Whether you are setting up a small venture, need working capital to further your business, or manage personal expenses, securing a business loan is the best solution for any kind of financial crunches. At IIFL Home Loans, we offer loans for small businesses in the form of a Secured Business Loan which is a multi-purpose financing option to gain instant financial assistance whenever required.
Prospective applicants can avail of the SBL against residential, commercial, or a plot of land. The pledged collateral assures the lender that the borrower would repay the loan over the tenure specified in the loan agreement. The secured business loan interest rate starts from 10.65% onwards. Borrowers can avail of the loan for a maximum tenure of 10 years.
Key Features
.svg)
Maximum Loan Assistance
Borrowers can avail of a maximum loan amount of up to ₹ 10 crores for a maximum loan term of up to 10 years.
Flexible Repayment
The secured business loan is the common financing option for small businesses. If the value of the mortgaged property is higher, the repayment term is longer and more flexible.
Loan to Value
Avail loan sanction up to 65% of market value against residential/commercial properties.
Loan Balance Transfer
Small businesses can also opt for a secured business loan balance transfer with the top-up facility to enjoy lower interest rates on the business loan.
Quick Approval
Get a business loan approval instantly with a minimum documentation process in just 30 minutes*.
.svg)
Lower Interest Rates
The business loan is available at a lower interest rate, starting from 10.75%. At IIFL Home Loans, you can simply mortgage residential, commercial property, or land with us to get the loan at the best rates.
Secured Business Loan Eligibility
To apply for a loan, it is crucial to check the Secured Business Loan eligibility. Whether you apply for a regular Secured Business Loan or Secured Business Loan, the following are the eligibility criteria for borrowers looking to avail loan against property:
-
Any Indian resident, either salaried or self-employed, can avail of finance for SMEs..
-
The age group of the applicants can be a minimum of 21 years and a maximum of 70 years.
-
Primary applicants can choose a co-applicant to increase the loan eligibility limit and avail of the best business loan interest rate.The co-applicants can be partnership firms, close relatives or private limited companies.
-
The entities eligible for the business financing include Shopkeepers, Wholesalers, jewelers, retailers, micro and small manufacturing enterprises, and self-employed professionals.
-
Properties covered include residential property, commercial/mixed-use properties, and industrial built-ups.
-
Loan to Value on the properties goes up to 65%.
-
Transactions covered include Loan Against Property, Balance Transfer of Loan Against Property along with top-up, Non-Residential Purchases, and balance transfer of Non-Residential Purchases.
Key Highlights
| Product Type | Regular Secured Business Loan |
| Minimum Loan Amount (non metro) (INR) | 2 lakh* |
| Minimum Loan Amount (metro) (INR) | 2 lakh* |
| Maximum Loan Amount (non metro) (INR) | 10 crore |
| Maximum Loan Amount (metro) (INR) | 10 crore |
| Maximum Tenure (Years) | 10 |
| Document Type | Salaried |
| Application Form |  |
Identity Proof
|
|
Address Proof
|
|
Income & Other Documents
|
|
Property Documents
|
|
| Document Type | Self-employed |
| Application Form | |
Identity Proof
|
|
Address Proof
|
|
Income & Other Documents
|
|
Property Documents
|
|
The sme business loan is the best way to scale up your business footprint. As compared to unsecured loans, the sme business loan interest rates are lower. Apart from this, a few other charges and fees are applicable over and above the interest rates when you apply for a business loan.
At IIFL Home Loans, the interest rate of a Secured Business Loan starts at 10.75%* and may vary depending on several factors. When it comes to additional charges associated with the loan type, it is as follows:
1. The loan required you to pay a nominal one-time processing fee
2. Late payment of the loan would attract a nominal fee as applicable
3. Other miscellaneous charges include those related to collateral evaluation, stamp duty, registration certificate collection, documentation, amortization charges and so on.
| Type of interest rate | Up to 1.75% |
| Interest rate | Starting from 10.75%* |
| Processing fees | Up to 2% |
| Late payment charges | 18% per annum of outstanding EMI |
| Collateral evaluation charges | Starting from Rs. 5000* |
FAQs
A Secured Business Loan is a type of loan that small business owners such as Kirana shops, stores or restaurants can acquire to fund any professional or personal commitment. Businesses can get the loan by pledging residential, commercial or plot of land.
In order to apply for a business loan, it is crucial to meet the sme loan eligibility criteria. At IIFL Home Loans, small businesses can easily apply for Secured Business Loan Online.
The business loan or sme lending requires a collateral, which is essentially a property asset. The loan amount is offered after evaluating the current market value of the property. In case the value of the mortgaged asset is high, the loan amount is also high, and the loan term is longer.
