|A business loan is popular category of loans offered by almost all banks in both public as well as private sector. The main aim of a business loan is to help traders, businessmen and professional, start or expand their commercial activities. Such loans are provided to facilitate trade and smooth functioning of business.
Business loans are available to firms and corporations to meet their operating expenses; to finance for capital expenditure, expanding a business or industrial unit; and to exchange existing high cost debt from other bank or financial institution etc. There are two types of business loans available and they are Professional loans and Trade loans.
Generally, the maximum loan amount is Rs. 25 lakhs and maximum loan tenure is 5 years.