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NBFC Business Loans: Quick & Easy Financing for Startups and MSMEs

NBFC Business Loans are financial products offered by Non-Banking Financial Companies (NBFCs) to support businesses in need of funding. Unlike traditional banks, NBFCs provide faster approvals, flexible loan structures, and minimal paperwork.

Many businesses, especially startups, MSMEs, and SMEs, find it difficult to get loans from banks due to stringent requirements.

NBFC loans serve as an alternative financing solution, offering funding for working capital, expansion, inventory purchase, equipment purchase, and operational expenses.

What Are NBFC Business Loans?

NBFC Business Loans are financial products offered by Non-Banking Financial Companies (NBFCs) to support startups, SMEs, and MSMEs in need of funding. These loans are known for their fast approvals, flexible terms, and minimal paperwork, making them a preferred alternative to traditional bank loans.

Looking for government-backed options? Check out our Government Business Loans guide for additional funding schemes.

Why Choose NBFC Business Loans Over Traditional Bank Loans?

Many small businesses struggle with bank loan approvals due to strict eligibility criteria. That’s where NBFCs come in—offering NBFC Loans that are easier to access and faster to disburse.

Key Benefits of NBFC Business Loans:

  • Quick Disbursement– Get funding faster than traditional banks.
  • Minimal Paperwork – Simple application process with basic documents.
  • Flexible Loan Tenure – Tailored repayment periods to suit business needs.
  • Higher Approval Rates – Even businesses with lower credit scores may qualify.
  • Unsecured Loan Options – No collateral required for selected loans.

Types of NBFC Business Loans

NBFCs offer a variety of loan products designed to meet different business needs:

1. Working Capital Loans

  • Ideal for daily operational expenses.
  • No collateral in most cases.

2. Term Loans

  • Long-term financing for expansion and growth.
  • Tenure: 1 to 10 years.

3. Equipment & Machinery Loans

  • Fund the purchase of modern machinery.
  • Often secured by the asset.

4. Invoice Financing

  • Short-term loan against pending invoices.
  • Quick access to working capital.

5. Business Line of Credit

  • Fund the purchase of modern machinery.
  • Often secured by the asset.

6. Merchant Cash Advance

  • Based on projected POS transactions.
  • Repayment linked to daily sales.

7. Unsecured Business Loans

  • No collateral required.
  • Best for startups and small enterprises.

Learn more about our tailored NBFC Loan solutions built to meet unique business needs.

Advantages of NBFC Business Loans

Choosing an NBFC business loan comes with multiple advantages:

  • Easy Accessibility: Designed for startups, MSMEs, and growing businesses.
  • Fast Loan Approvals: Minimal delays and quick processing.
  • Customizable Loan Structure: Choose your amount, tenure, and repayment schedule.
  • Higher Funding Limits: Some NBFCs offer up to ₹5 crore based on business strength.
  • Suitable for Low Credit Score Applicants: Easier eligibility compared to banks.

Best NBFC for Business Loan: How to Choose the Right One

When selecting the best NBFC for business loan, compare:

  1. Interest Rates: Vary by NBFC, loan type, and your credit profile.
  2. Loan Amount & Tenure: Ensure it fits your business’s financial needs.
  3. Processing Time: Look for NBFCs known for fast approvals.
  4. Collateral Requirements: Choose between secured and unsecured loan options.
  5. Additional Charges: Understand all fees—processing, prepayment, and late payment.
  6. Reputation & Support: Choose NBFCs with positive reviews and responsive service.

Before you apply, make sure your business is properly registered and certified. Explore our expert services in MSME Certification to boost your loan eligibility.

NBFC Loan Eligibility Criteria

Here’s what you typically need to qualify for an NBFC loan:

  • Business Type: Sole Proprietorship, Partnership, Pvt Ltd, etc.
  • Business Age: 1–3 years in operation.
  • Annual Turnover: Starts from ₹10 lakh.
  • Credit Score: Preferably 650+ (some NBFCs accept lower scores).
  • Profitability: Demonstrated consistent revenue and growth.

Want more insights on how to prepare your business for funding? Visit our expert insights on business funding strategies .

NBFC Loan Documents Required

To apply for an NBFC business loan, prepare these essential documents:

  • KYC Documents: PAN, Aadhaar, Passport, or Voter ID.
  • Business Registration Proof: GST Certificate, Udyam Registration, Incorporation Certificate.
  • Bank Statements: Last 6–12 months.
  • ITR Filings: Last 2–3 years (for higher loan amounts).
  • Financial Statements: Profit & Loss, Balance Sheet, Cash Flow.
  • Collateral Proof: If applying for a secured loan.

NBFCs often require less documentation than banks, making them easier for small businesses to approach.

Final Thoughts on NBFC Business Loans

NBFC business loans are a smart funding option for startups, SMEs, and MSMEs that require fast, hassle-free financing. Whether you’re expanding your operations, upgrading equipment, or need working capital—NBFC loans offer a practical alternative to traditional banking.

Ready to take the next step? Explore NBFC loans today and give your business the financial boost it needs.

Frequently Asked Questions: NBFC Business Loans

Find answers to common questions about equity-based funding for startups

Popular options include Bajaj Finserv, Tata Capital, Aditya Birla Finance, and L&T Finance. Choose based on interest rates, customer reviews, and loan flexibility.

Still have questions?

Our team of funding experts is ready to help you understand the equity funding process and choose the right option for your startup.

Available Equity-Based Funding Options

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