If you are an entrepreneur looking for a personal loan to start or grow your business, you might be wondering about your personal loan eligibility and how to apply for a business loan from Muthoot Finance. Muthoot Finance is one of the leading non-banking financial companies (NBFCs) in India, offering various loan products for individuals and businesses. In this article, we will explain the benefits, features, and eligibility criteria of a startup business loan from Muthoot Finance, and how you can apply for it online or offline.
Benefits of a Startup Business Loan from Muthoot Finance
A startup business loan from Muthoot Finance can help you meet your working capital needs, purchase equipment, expand your operations, or fund any other business-related expenses. Some of the benefits of this loan are:
Flexible repayment options: You can choose a repayment tenure ranging from 12 to 60 months, depending on your cash flow and convenience. You can also opt for prepayment or part-payment of the loan, subject to certain charges and conditions.
Competitive interest rates: Muthoot Finance offers attractive interest rates for startup business loans, starting from 11.99% per annum. The interest rate may vary depending on your credit score, loan amount, tenure, and other factors.
Minimal documentation: You can apply for a startup business loan from Muthoot Finance with minimal documentation, such as identity proof, address proof, income proof, bank statements, business proof, and GST registration (if applicable).
Quick processing and disbursal: Muthoot Finance has a fast and hassle-free loan approval process, and you can get the loan amount disbursed to your bank account within 24 hours of approval, subject to verification and completion of formalities.
No collateral or guarantor required: You do not need to pledge any collateral or provide any guarantor to avail a startup business loan from Muthoot Finance, as it is an unsecured loan.
Features of a Startup Business Loan from Muthoot Finance
Some of the key features of a startup business loan from Muthoot Finance are:
Loan amount: You can borrow up to Rs. 10 lakhs for your startup business, depending on your eligibility and requirement.
Loan tenure: You can repay the loan in easy monthly installments (EMIs) over a period of 12 to 60 months, as per your convenience and cash flow.
Processing fee: Muthoot Finance charges a nominal processing fee of up to 2% of the loan amount, plus applicable taxes.
Prepayment and part-payment charges: You can prepay or part-pay the loan before the end of the tenure, subject to a charge of 4% of the outstanding principal amount, plus applicable taxes, if you do so within 12 months of disbursal. If you prepay or part-pay the loan after 12 months of disbursal, the charge is 3% of the outstanding principal amount, plus applicable taxes.
Late payment charges: If you fail to pay the EMI on time, you will have to pay a late payment charge of 2% per month on the overdue amount, plus applicable taxes.
Eligibility Criteria for a Startup Business Loan from Muthoot Finance
To be eligible for a startup business loan from Muthoot Finance, you need to meet the following criteria:
Age: You should be at least 21 years old at the time of application, and not more than 65 years old at the time of loan maturity.
Nationality: You should be an Indian citizen or a person of Indian origin (PIO) with a valid passport and visa.
Residence: You should be residing in India for at least 1 year, and have a permanent or current address proof.
Income: You should have a minimum monthly income of Rs. 25,000, and a minimum annual turnover of Rs. 5 lakhs for your business. You should also have a positive net worth and a good credit history.
Business: You should have a valid business proof, such as a trade license, registration certificate, partnership deed, or any other document that establishes your ownership and nature of business. You should also have a GST registration, if applicable, and a business bank account with at least 6 months of transactions.
How to Apply for a Startup Business Loan from Muthoot Finance
You can apply for a startup business loan from Muthoot Finance online or offline, as per your convenience. Here are the steps to follow:
Online: You can visit the official website of Muthoot Finance and fill up the online application form with your personal and business details. You can also upload the required documents and submit the form. You will receive a confirmation message and a reference number for your application. You can track the status of your application online or through SMS and email. A representative from Muthoot Finance will contact you to verify your details and complete the formalities. Once your loan is approved, the amount will be disbursed to your bank account within 24 hours.
Offline: You can visit the nearest branch of Muthoot Finance and meet a loan officer. You can fill up the physical application form and submit the required documents. The loan officer will verify your details and process your application. Once your loan is approved, the amount will be disbursed to your bank account within 24 hours.