1. Bank Business Loans
- Turnover Requirement: Generally, banks like SBI, HDFC, and ICICI may require a minimum turnover of ₹10 lakh to ₹1 crore annually for small businesses. Larger loans may have higher turnover requirements.
- Loan Amounts: Loans typically range from ₹10 lakh to ₹5 crore or more.
- Eligibility: Banks also look at factors like profitability, cash flow, and credit history.
2. NBFC Business Loans
- Turnover Requirement: Non-banking financial companies (NBFCs) are often more flexible, with many requiring a minimum turnover of ₹10 lakh to ₹20 lakh.
- Loan Amounts: Loans from NBFCs may be smaller and range from ₹50,000 to ₹1 crore.
- Eligibility: NBFCs may focus more on cash flow than strictly turnover, making them more accessible to small and mid-sized businesses.
3. Government Schemes
- Turnover Requirement: Some government-backed loans may not have a strict turnover requirement but do have a cap on loan amounts, which may indirectly influence eligibility based on business size.
- Loan Amounts: Under schemes like Mudra Loans, businesses can access up to ₹10 lakh. Stand-Up India loans range up to ₹1 crore.
- Eligibility: Mudra loans are for businesses with lower turnovers, while schemes like Stand-Up India target slightly larger businesses.
4. Startup Loans
- Turnover Requirement: Startups may not need a specific turnover amount but must show business viability and revenue projections.
- Loan Amounts: Generally, smaller amounts, ranging from ₹10 lakh to ₹1 crore.
- Eligibility: Lenders often focus on a strong business plan, revenue model, and sometimes a minimum operational period (like 1-2 years).
5. Working Capital Loans and Invoice Financing
- Turnover Requirement: For these short-term loans, some banks or NBFCs may require minimum annual turnover of ₹25 lakh to ₹1 crore.
- Loan Amounts: Based on invoices or cash flow needs, usually a percentage of turnover.
- Eligibility: Lenders focus on a steady revenue stream and positive cash flow rather than specific turnover.