Secured and unsecured funding for established businesses in Hyderabad and across Telangana. We tell you what you would realistically qualify for before you apply anywhere — including when the honest answer is that unsecured lending will not stretch to what you need.
Indicative market range: roughly 14% to 28% a year for unsecured business lending, and from around 10.5% where property is offered as security. Those are market ranges, not a rate you have been quoted.
Is a business loan right for you?
Usually a good fit
- Three or more years of trading history
- GST registered and filing regularly
- You need up to about ₹1 crore
- You want the money inside two or three weeks
- You would rather not mortgage anything
Look at a loan against property instead
- The business is under two years old
- You need more than ₹1 crore
- You want a tenure beyond five years
- Your turnover is modest but you own property
- You want the lowest possible rate
See the full comparison, with the EMI on ₹50 lakh worked out both ways →
What you can typically raise
| Annual turnover | Trading history | Typical unsecured | With property as security |
|---|---|---|---|
| ₹50 lakh – ₹1 crore | 3+ years | ₹5 L – ₹15 L | ₹25 L – ₹60 L |
| ₹1 crore – ₹3 crore | 3+ years | ₹15 L – ₹50 L | ₹50 L – ₹1.5 Cr |
| ₹3 crore – ₹10 crore | 3+ years | ₹40 L – ₹1 Cr | ₹1 Cr – ₹5 Cr |
| Above ₹10 crore | 5+ years | ₹75 L – ₹2 Cr | ₹3 Cr + |
Most lenders size an unsecured business loan somewhere between 10% and 25% of annual turnover, then check whether your cash flow can actually service the EMI — and the smaller of those two numbers wins. Secured lending is sized on the property instead, usually 55% to 70% of market value. Your actual number depends on your banking, your GST filings, your existing EMIs and your credit history.
Work out the EMI
₹72,138
per month · 48 months
- Total interest
- ₹9,62,605
- Total repayment
- ₹34,62,605
In the first year, about 44.9% of what you pay goes to interest rather than reducing the loan.
Check what I could raiseIndicative only. Final eligibility, interest rate, charges and sanction are decided by the lender after full assessment of your profile and documents. Transakt does not lend and does not approve loans.
What lenders actually look at
- Business vintageHow long you have been trading. Under two years, unsecured lending is very hard whatever your turnover. Why it matters →
- Banking turnoverThe credits actually landing in your current account. This is the first document a lender reads, and it has to match what you have declared. Read more →
- GST filingsThe quickest independent verification of your turnover. Gaps in filing cost you real money in reduced eligibility. The three turnover numbers →
- Credit historyYour CIBIL score, but also enquiries, settled accounts and repayment behaviour. What score you need →
- Existing obligationsEvery EMI and OD interest payment already going out reduces what is left. How FOIR works →
What documents you will need
Step 2 — Who is applying?
18 documents for a business loan as a self-employed professional
About you 4
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For a company or firm, the entity PAN as well as the PAN of each director or partner.
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The name on Aadhaar should match PAN. A mismatch is one of the most common causes of delay.
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Electricity bill, rent agreement, passport or voter ID. It must match the address you put on the application.
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Recent, plain background. Some lenders still want physical copies.
About the business 6
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If you are registered. If you are not, say so early — it changes which lenders can look at the file.
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Free to obtain and takes about a day. Worth having even if no lender has asked for it yet.
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Utility bill, rent agreement, trade licence or shop and establishment certificate.
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The oldest of your GST certificate, Udyam registration, trade licence or first ITR usually does this.
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Degree certificate and, where applicable, the registration or practice certificate — medical council, bar council, ICAI and so on.
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Clinic or office registration, or the professional body membership certificate.
Money 5
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All current accounts the business uses. This is the document a lender reads first — download the PDF from net banking rather than scanning a printout, and do not remove any pages.
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Filed returns, with the acknowledgement. An unfiled or late return will hold the file up.
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Audited where audit applies. For a small proprietorship, the computation attached to the ITR is often enough.
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Your monthly GST summary return. Lenders compare this against your bank credits, so the two should tell the same story.
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Plus the latest statement or repayment schedule for each. Hiding an existing loan never works — it shows on the credit report.
Sometimes asked for 3
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Some lenders ask for this to understand concentration risk. A simple typed list is fine.
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If the money is for a specific machine or asset.
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For working capital facilities above roughly ₹50 lakh.
Actual documents vary by lender and by your profile. Your advisor will confirm the exact list before anything is submitted.
What the money is for
Expansion
A new unit, a second branch, more capacity. Usually a term loan over three to five years, sized against turnover. This is the cleanest case to fund because there is something to show for the money, and lenders are comfortable when the business is already profitable and simply constrained by capacity.
Working capital
The gap between paying your suppliers and being paid by your customers. An overdraft or cash credit facility usually suits this better than a term loan, because you pay interest only on what you actually use. A term loan with a fixed EMI to solve a cash flow gap often makes the gap worse. Work out the size of your gap →
Machinery and equipment
Equipment finance, where the machine itself often serves as partial security, which can bring the rate down. Have the quotation or proforma invoice ready — lenders will want it, and it makes the file considerably easier to place.
Inventory and stock
Seasonal stocking, festival build-up, a bulk purchase at a good price. Short tenure, and lenders look closely at how quickly your stock actually turns. If your stock sits for 120 days, say so — trying to present it as 45 days does not survive the bank statement analysis.
A cash flow gap
Receivables delayed, payroll due. This is the hardest case to fund and we will not pretend otherwise. Lenders read urgency as risk. The honest options are usually an overdraft against property, invoice discounting if your customers are creditworthy, or a shorter-term facility at a higher rate. If someone is telling you this is easy, be careful.
Why business loan applications get rejected
Banking turnover does not match the GST or ITR numbers
Lenders read your bank statements first. If declared turnover is ₹2 crore and the credits in the account are ₹60 lakh, the file usually stops there — not because you have done anything wrong, but because the lender cannot verify what they cannot see.
How to fix this before applyingToo many recent credit enquiries
Six lenders pulled your CIBIL last month. The seventh assumes six of them said no. Applying everywhere at once is the most common self-inflicted rejection we see.
How to fix this before applyingCheque returns or insufficient funds entries
Even small ones, even from a year ago. A single return in the last six months will be questioned; three or more will usually stop the file.
How to fix this before applyingExisting obligations are already too high
When EMIs already take more than roughly half of assessable income, there is no room left, however good the business looks.
How to fix this before applyingDetails do not match across documents
The address on your GST certificate, your Udyam registration, your bank account and your electricity bill should all say the same thing. When they do not, the file gets slower and sometimes stops.
How to fix this before applyingThe current account is swept to zero every month
What feels like efficient cash management reads to a lender as a business with no buffer. Keeping a modest average balance for three months before applying genuinely changes how the file is assessed.
How to fix this before applyingNot sure where you stand?
Ask the Transakt assistant. It can work out your EMI, give an indicative range and tell you what a lender will want to see — without asking for your number.
Questions people ask
How much business loan can I get on ₹1 crore turnover?
For an established, GST-compliant business with three or more years of trading, unsecured business loans are typically sized between 10% and 25% of annual turnover — so on ₹1 crore that is commonly ₹15 lakh to ₹25 lakh. It is then checked against whether your cash flow can carry the EMI alongside existing commitments, and the lower of the two figures is what you are offered. If you have property to offer, the number changes completely.
Can I get a business loan without GST registration?
It is harder and the amount will be lower, but it is not impossible. Without GST filings a lender has fewer independent ways to verify your turnover, so they rely more heavily on bank statements and ITRs and lend more conservatively. If you are close to the registration threshold anyway, registering and filing consistently for six months usually improves your position more than any other single step.
What CIBIL score do I need for a business loan?
Most lenders want 700 or above for unsecured business lending, and 750 or above gets you the better rates. Below 650, unsecured options narrow sharply and secured lending becomes the realistic route. The score is not the whole picture though — a lender will look at why it is what it is.
How long does a business loan take?
With complete documents, an unsecured business loan typically takes five to fifteen working days from a complete file to disbursement. Incomplete documents are what causes almost every delay, which is why the document checklist on this site is worth going through properly before you start.
Do I need to give security for a business loan?
Not for an unsecured business loan, which is what most people mean by the term. You will normally have to give a personal guarantee as the proprietor, partner or director, which is different from mortgaging an asset. Secured business loans, where property is mortgaged, offer more money at a lower rate over a longer period.
Can a new business get a loan?
Under a year of trading, an unsecured business loan is very unlikely regardless of turnover. The realistic routes are lending against property, a facility in the proprietor's personal capacity, or a government-backed scheme. It is worth a conversation rather than a series of applications that damage your credit report.
What is the difference between a term loan and an overdraft?
A term loan gives you a lump sum that you repay in fixed EMIs — right for buying something. An overdraft or cash credit gives you a limit you can draw on and repay as you like, and you pay interest only on what you use — right for a cash flow gap. Using a term loan to solve a working capital problem is a common and expensive mistake.
Will applying affect my credit score?
Each formal application creates an enquiry on your credit report, and several in a short window will lower your score and make lenders cautious. This is the main practical reason to work out where you actually stand before applying rather than applying in several places at once.
Get your file reviewed by an advisor
Your file
- One advisor, not five lenders. Your details are not sold or shared.
- A call within one working day, on the number you give us.
- No documents needed yet. No PAN, no Aadhaar, no statements.
- Ask us to delete your file at any time and we will.