Which Business Loan Is Right for You?
Answer 6 questions about your funding need, business profile, and collateral to find out which type of business loan is right for you. Free, instant recommendation.
Answer 6 questions about your funding need and business profile. We'll recommend the right loan type for your situation.
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Business Loan Options in India — Quick Guide
Loan Types at a Glance
| Loan Type | Amount | Rate | Speed | Collateral |
|---|---|---|---|---|
| Mudra Loan (Shishu) | Up to ₹50,000 | 8–12% | 7–14 days | No |
| Mudra Loan (Kishore/Tarun) | ₹50K–₹10L | 10–14% | 7–21 days | Sometimes |
| CGTMSE (PSU Bank) | Up to ₹5 crore | 9–14% | 2–6 weeks | No (guarantee-backed) |
| Unsecured Fintech Loan | ₹1L–₹50L | 18–28% | 48–72 hours | No |
| Working Capital OD | ₹5L–₹5 crore | 12–18% | 1–3 weeks | Property/FD |
| Invoice Discounting | 80–90% of invoice | 15–24% | 24–48 hours | Invoice as collateral |
Why Udyam Registration Matters for Loans
MSME-registered businesses get:
- Priority sector lending — PSU banks must allocate a share of their loan book to MSMEs; you get preference
- CGTMSE eligibility — collateral-free loans up to ₹5 crore backed by a government guarantee
- Subsidised interest — several state government schemes offer interest subvention of 2–5% for Udyam-registered businesses
- Faster processing — many banks have dedicated MSME desks with faster turnaround
Udyam registration takes 5 minutes online, is completely free, and is based on self-declaration. There is no reason not to register.
GST Filing History as a Credit Signal
Fintech lenders increasingly use your GST return history as a proxy for business health:
- Consistent GSTR-3B filing → proof of regular business activity
- Growing declared turnover → signals business growth
- Regular ITC claims → signals genuine business operations
3–6 months of clean GST filings can unlock unsecured loans that were previously unavailable.