Business loan in Mumbai

Mumbai is known for providing opportunities. However, to build a business in the city of dreams, one needs to raise funds. Therefore, it is important to understand how to get a business loan in Mumbai.

This article elaborates on how to obtain a business loan in Mumbai, the documents required, eligibility criteria, and so on.

Business loan in Mumbai: Banks in Mumbai

Mumbai is known to be the financial capital of the country as a result, it houses head offices and branch offices of several banks and NBFCs. This results in having multiple options for seeking a business loan.

Here is a list of leading banks in Mumbai:

• State Bank of India
• Bank of Maharashtra
• HDFC Bank
• ICICI Bank
• Axis Bank
• Yes Bank
• Indusland Bank
• Bank of India
• Canara Bank

Note: Please note that the above list is only indicative and not an exhaustive list.

Additionally, various regional and cooperative banks have a presence mainly in Mumbai and Maharashtra. Here is a list of some of such institutions:

• Maharashtra State Cooperative Bank (MSCB)
• Saraswat Bank
• Mumbai Bank
• SVC Bank
• Thane Janata Sahakari Bank
• NKGSB Cooperative Bank
• The Cosmos Bank
• Equitas Small Finance Bank
• AU Small Finance Bank
• Suryoday Bank

Note: Please note that the above list is only indicative and not an exhaustive list.

How to obtain a business loan in Mumbai?

If you are located in Mumbai and plan to seek a business loan, here is how you can obtain:

• Firstly, identify your business needs and the amount of loan you require.
• Understand what kind of a business loan suits your requirements the best.
• You can ask your current banker about the facilities such as overdrafts, pre-approved loans, etc. This is an easy and hassle-free way of getting a business loan.

Applying for a business loan online

Applying online is one of the quick ways to apply for a business loan.

• Visiting the website: You can visit the bank’s website. HDFC Bank, ICICI Bank, etc., are known for their quick turnaround time. On the other hand, cooperative banks intend to foster the growth of the community. You can select the bank according to your preference.
• Explore loan schemes: Browse through various loan schemes that the bank offers. The State Bank of India has a plethora of schemes for micro and small businesses.
• Fill in the form: Enter the required details and fill in the application form.
• Upload documents: Once you fill in the form, upload the required documents, which usually include identity proofs (Aadhaar card, PAN card, etc.) and financial documents such as bank statements for 6-12 months.
• Submit: Submit your application form along with the necessary documents.

Applying for a business loan offline

As mentioned earlier, one of the advantages of seeking a business loan in the financial capital of India is the presence of various banks. Here is how you can apply in banks offline:

• Visit the nearest branch and meet the loan executive.
• You can discuss your business needs with the loan executive. You can ask the executive to suggest a suitable loan scheme for your needs.
• The loan executive explains loan schemes that suit your requirements. For example, a few banks have special loan schemes for CAs while there are various loan schemes as per needs such as loan for buying new machinery, etc.
• You can apply for a suitable loan. You will need to submit an application form along with the required documents.
• The loan application will then go to loan underwriters for processing.

Eligibility criteria

Eligibility criteria for applying for a business loan in Mumbai depend on the type of loan you are applying for. Here are some examples:

Note: It is best to ask the lender about eligibility criteria before applying for a loan as the criteria are subject to change periodically.

Commonly required documents for a business loan in Mumbai

• PAN Card
• Aadhaar card
• Bank statements
• Proof of continuation
• ITRs
• GST returns
• Balance sheet
• Project report
• Udyam registration certificate

Some of the important questions you should ask lender

Before you obtain a business loan, here are some questions you need to ask before you obtain a business loan:

• What is the interest rate?
• What are the eligibility criteria?
• What is the loan repayment schedule?
• What will be my EMI and monthly due date?
• What are the processing fees and other charges?

Concluding note: Tips for seeking a business loan in Mumbai

• Seek all information about the loan scheme before obtaining the loan.
• Learn about the rate of interest rate and loan repayment period. Also, understand that you can negotiate on the rate of interest.
• It is always better to get loan offers from multiple lenders and compare them before choosing the right one.
• Applying for a loan online is hassle-free and quick. However, keep a set of digital documents ready. This will speed up your process.

Author: 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.