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With changing times and higher levels of adoption of digital technologies, the nature of businesses and their needs are changing. For example, the needs of new-age businesses like  Amazon sellers or content creators are significantly different than conventional businesses. Content creators and YouTubers have specific business needs. This article takes a deep dive into business loans for YouTubers.

Let’s begin with if YouTubers are eligible for a business loan.

Are YouTubers eligible to seek a business loan?

A simple answer to this question is yes. There are ample opportunities for seeking financial help for startups or self-employed professionals.

You may need to register your content creation business. Having a business registration certificate will open up financial assistance opportunities for you.

Types of business loans suitable for YouTubers

Here are some types of loans, which YouTubers and content creators can consider applying for:

Equipment financing

One of the main purposes of YouTubers seeking financial help is to raise funds for buying the right equipment such as cameras, lenses and other allied equipment. Although an equipment financing loan is designed for manufacturers, you can check with your bank if it can extend support to buy advanced photography and film shooting equipment. One of the advantages of equipment financing is you will not need to promise any collateral. All leading banks and NBFCs offer equipment financing loans however, some of them might be specific to the industry such as construction equipment financing or medical equipment financing, etc. Therefore, you need to check with the bank.

Business loan for self-employed

Business loans for self-employed are available for self-employed professionals as well as non-professionals. Being a self-employed content creator, you can seek a loan meant for the self-employed. This loan can be used for various purposes including business expansion, purchase of new equipment, and so on. Here are some of the banks offering business loans for self-employed along with their interest rates.

Bank/NBFC Interest rate
HDFC Bank 10% to 22.5%
Axis Bank 11.95% – 21.20% p.a.
Bajaj Finserv 12-30%

Note: The business loan interest rates and other details are subject to change periodically. It is best to get current information from the bank/NBFC.

Personal loan for business needs

Personal loan for business is obtained  under the name of the business owner. Meaning that the loan is approved for the business owner under his/her individual capacity. Therefore, it is beneficial for you to have a  higher CIBIL score. One of the critical factors for this kind of loan is the creditworthiness of the individual. Also, the business owner and not the business is responsible for the loan repayment. The interest rate on personal loans ranges between 11-22%. Some of the advantages of obtaining a personal loan for business needs include:

  • Fast approval and disbursal
  • No need for collateral
  • Flexible terms for funds usage

Pre-approved loan

Depending on your relationship with the bank and past financial transactions, your bank may offer you a pre-approved loan. One of the key advantages of a pre-approved loan is it has minimal or no documentation. Moreover, pre-approved loans can be obtained despite the low or absence of any credit score. Hence, it can turn out to be a beneficial loan for YouTubers. Here are some of the key features of a pre-approved loan.

  • Pre-approved means less time for processing
  • Quick disbursal
  • Lower interest rate
  • Lower or no processing charges
  • Minal documentation.

Business loan without ITR

Income tax returns are one of the documents usually needed for obtaining a business loan. However, sometimes YouTubers do not have it. Hence, they find it difficult to obtain a business loan. In such cases, a business loan without ITR can come to your rescue. This type of loan does not require income tax returns. Here is how some banks and NBFCs are offering a business loan without ITR.

Business Loan
Bank/NBFC name Loan amount Interest rate
Tata Capital Up to ₹25 lakh 13-20%
LendingKart Up to ₹10 lakh 1.5% to 2% per month
IDFC Bank Up to ₹10 lakh 18-22%

Note: The business loan interest rates and other details are subject to change periodically. It is best to get current information from the bank/NBFC.

Business loan for a one person company

YouTubers usually work in the format of a one person company where in the proprietor or the business owner is the single member of the business. Therefore, you can obtain a business loan designed for a one person company. There are many banks and NBFCs that offer business loans for such companies. You can approach your bank and enquire about the same.

Other loan options

Here are some other types of business loan options YouTubers can consider

  • Collateral loan
  • Start-up loan
  • Gold loan
  • Loan on credit card
  • Loan against FD
  • Overdraft

Business loan for YouTubers: Tips to get a quick approval

Here are a few things that can help you to get quick approval and disbursement.

  • Make a business plan: It may not be necessary for all kinds of loans to provide a business plan. However, it is best to have the document in place, so that if the bank requests, you can quickly produce it. Additionally, it gives you vision and clarity about the way forward for your business.
  • Check your CIBIL score: Maintain a higher CIBIL score. You will first need to check your CIBIL score and analyse if it is sufficient for seeking a loan. If the need is, you can improve it. You can check your CIBIL score at Tata nexarc. Visit the Business Loans page and click on check CIBIL score. Enter your details to know your score.
  • Collateral: In the case of a business loan collateral can do wonders for you. If your CIBIL score is low, you can promise collateral to meet your financial needs. Timely repayment of the loan can help you improve your CIBIL score too.

Concluding remarks

Being a YouTuber can be a low-investment business. However, you need to invest in the right kind of technology and investment to be successful. Therefore, it is best to seek a business loan to buy the right equipment. In some cases, you might also need a studio. Analyse your fund requirements and then approach a financial institution for a loan.

While you plan to obtain a business loan from a bank or NBFC, visit multiple banks and compare eligibility criteria, interest rates and processing charges. Read the eligibility criteria before you apply. Loan rejection can affect your CIBIL score adversely.

Lastly, read the terms and conditions carefully before signing the loan agreement. Make a note of foreclosure clauses. This will help you to plan and repay your loan quickly.

Also read: Business loan on degree certificate

Swati Deshpande

Swati is a passionate content writer with more than 10 years of experience crafting content for the business and manufacturing sectors, and helping MSMEs (Micro, Small and Medium Enterprises) navigate complexities in steel procurement, and business services. Her clear and informative writing empowers MSMEs to make informed decisions and thrive in the competitive landscape.