A business loan upto ₹1 crore is available in India from both private lenders (banks & NBFCs) and government-backed schemes, with multiple options for collateral-free business loans as well as secured funding. Businesses with strong turnover, clean banking, and stable cash flows can access funding even without property security under specific schemes.
This section focuses on eligibility, loan options, required documents, and the exact application process—critical for borrowers searching to apply for business loan and convert.
Loan Options for ₹1 Crore Business Loan
1. Collateral-Free Business Loan (Unsecured)
Many lenders offer business loan without collateral and loan for business without security up to ₹1 crore, especially for MSMEs with strong financials.
Key highlights:
- No property or asset required
- Faster approval timelines
- Slightly higher interest rates than secured loans
- Ideal for traders, service providers, and growing MSMEs
Role of CGTMSE Scheme
Collateral-free funding is often supported by the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme, where the government provides a credit guarantee to banks and NBFCs.
Benefits under CGTMSE:
- Enables unsecured business loans up to ₹1 crore
- Reduces lender risk, improving approval chances
- Particularly useful for MSMEs without property
2. Government-Backed Business Loan Schemes
Stand Up India Scheme
The Stand Up India scheme is designed to promote entrepreneurship among women and SC/ST entrepreneurs.
Key features:
- Loan amount from ₹10 lakh to ₹1 crore
- Can be structured as term loan + working capital
- May be partially or fully collateral-backed depending on profile
These schemes make new business loans and first-time large-ticket funding more accessible when structured correctly.
3. Bank Loan for Business vs NBFC Financing
| Parameter | Bank Loan for Business | NBFC Business Loan |
|---|---|---|
| Interest Rate | Lower | Higher than banks |
| Processing Time | Slower | Faster |
| Flexibility | Strict | Flexible |
| Ideal For | Established businesses | Growing & cash-flow driven businesses |
Private banks such as Axis Bank business loan products are often preferred for faster approvals in the ₹50 lakh–₹1 crore range.
Eligibility Criteria for Business Loan upto ₹1 Crore
While exact parameters vary by lender, most online business loan and offline applications follow these benchmarks:
1. Business Type & Vintage
Must be a registered business entity:
- Sole Proprietorship
- Partnership Firm
- LLP
- Private Limited Company
Minimum operational history: 3 years or more
2. Financial Health
Minimum annual turnover:
- ₹1 crore for NBFCs
- ₹2 crore or more for major banks
- Consistent cash profits for at least 1–2 financial years
- Regular GST filings and clean bank statements
3. Credit Score Requirement
Preferred CIBIL score: 700 or above
Higher scores result in:
- Lower interest rates
- Faster sanction
- Higher approval probability
Learn more about CIBIL score vs CMR rank for MSMEs.
4. Age Criteria
Applicant age: 25 to 65 years at loan maturity
Required Documents for ₹1 Crore Business Loan
Identity & Address Proof
- PAN Card (mandatory)
- Aadhaar Card
- Voter ID / Passport
- Utility bill or registered rental agreement
Business Proof Documents
- GST Registration Certificate
- Udyam Registration Certificate
- Certificate of Incorporation / Partnership Deed
- Shop Act License
Financial Documents
- Last 6–12 months bank statements
- ITRs for the last 2–3 years
- Audited Balance Sheet and P&L statements
Proper documentation significantly improves approval speed for bank loan for business and NBFC funding.
How to Apply for Business Loan upto ₹1 Crore with Creditcares
Applying directly with multiple lenders often leads to rejections, delays, and multiple CIBIL hits. Creditcares simplifies the entire process through a structured, lender-mapped approach.
Step-by-Step Application Process
1. Initial Eligibility Assessment
Business turnover, vintage, banking, and credit profile are reviewed.
2. Lender Matching
Based on your profile, we shortlist the most suitable banks, NBFCs, or government-backed schemes.
3. Documentation Support
Our team ensures documents are properly structured to meet lender requirements.
4. Application & Follow-ups
We manage end-to-end coordination with lenders, reducing approval time.
5. Sanction & Disbursement
Post-sanction support ensures smooth disbursement and correct loan structuring.
Why Choose Creditcares?
✅ Access to bank & NBFC business financing options
✅ Expertise in CGTMSE-backed unsecured loans
✅ Reduced rejection risk
✅ Faster turnaround time
✅ Single-point advisory for loans upto ₹1 crore
FAQs – Business Loan upto ₹1 Crore
Can I get a ₹1 crore business loan without collateral?
Yes, eligible MSMEs can avail collateral-free business loans under CGTMSE-backed programs.
Is an online business loan upto ₹1 crore possible?
Yes, many NBFCs and private banks allow digital applications subject to eligibility.
Do new businesses qualify for ₹1 crore funding?
New business loans are possible but usually require strong promoter credit and partial security.
Final Thoughts
A business loan upto ₹1 crore can transform business growth when structured correctly. Choosing the right lender, scheme, and loan type is critical for long-term financial stability.
Looking to apply for a business loan upto ₹1 crore?
Connect with Creditcares for expert guidance, faster approvals, and customized business financing solutions.
