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Knowledge Base
Bank Loan for Startup Business
Securing funds for a startup is one of the toughest challenges an entrepreneur faces. Banks are one of the largest funders of startups in India — providing funding to thousands of startups each year. Understanding the landscape of available loan types, eligibility criteria, and application processes can significantly improve your chances of approval.
Why Choose Bank Financing?
Bank loans don't require equity dilution. VC investors typically expect 5–10× returns compared to bank lending rates of 13–17%. Banks are easier to approach than venture capitalists and have a well-structured funding evaluation framework, so you receive clear answers quickly. All profits belong entirely to you.
CGTMSE Collateral-Free Scheme
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) allows banks to extend up to ₹1 crore in term loans and working capital without any collateral security. This scheme is particularly valuable for startups that lack physical assets to pledge as security.
SIDBI Startup Schemes
SIDBI offers Growth Capital & Equity Assistance for marketing, brand building, distribution networks, R&D, and software purchase. The SIDBI SRIJAN Scheme provides financial assistance up to ₹1 crore per project at not more than 5% p.a. for innovative, technology-based MSME projects.
Popular Business Loan Solutions
Term Loan
Fixed repayment schedule for capital expenditure, equipment, or business expansion needs.
Working Capital Loan
Short-term financing to cover day-to-day operations, inventory, and cash flow gaps.
Loan Against Property
Leverage your residential or commercial property for up to 70% of assessed market value.
Startup Loan
Collateral-free funding for new ventures under CGTMSE scheme, up to ₹1 crore.
Frequently Asked Questions
Everything you need to know about getting a bank loan for your startup.
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Get a Bank Loan for Your Startup
IndiaFilings helps you secure the right financing — term loans, working capital, and collateral-free options under CGTMSE.