Business
Loan
Business loans are provided by banks or NBFCs with fixed interest and EMI. They are processed quickly and need documents like ITR, GST, and a good credit score. Full repayment with interest is mandatory. See More
For more details, please get in touch with us at partnercare@capitalbox.in
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Government Funding Support
Government funding comes through schemes like PMEGP or Stand-Up India. It offers subsidies or grants, sometimes without interest or repayment. Processing takes time and is based on eligibility criteria. See More
For more details, please get in touch with us at
partnercare@capitalbox.in
| Parameter | NBFC Loan | Bank Loan | Government Funding |
|---|---|---|---|
| 1. Provider Type | Non-Banking Financial Companies – Private finance firms like LendingKart, InCred, Shriram Finance, Clix Capital | Scheduled Banks – Public (e.g., SBI, BOB) & Private (e.g., HDFC, ICICI) | Central & State Government Departments, Ministries (e.g., KVIC, SIDBI, MSME Ministry) |
| 2. Primary Objective | Fast capital to SMEs, startups or individuals who don’t qualify for traditional loans | Low-risk, secured lending to salaried, businesses, property-backed loans | Promote entrepreneurship, job creation, women/SC/ST upliftment, support startups & MSMEs through subsidies, grants, low-interest schemes |
| 3. Eligibility Criteria | Easy: Business vintage 6+ months, turnover ₹90K+/month, basic KYC, sometimes no ITR | Strict: 2-3 years ITR, audited financials, high CIBIL, good banking behavior | Based on scheme: Startup registration, caste/women status, Udyam registration, project report, DPR required |
| 4. Loan Amount | ₹50,000 to ₹1 Crore (some offer up to ₹2 Cr) | ₹1 Lakh to ₹5 Cr+ (depends on business health & security offered) | ₹50,000 to ₹25 Lakh (Mudra, PMEGP), ₹10 Cr+ in equity/venture schemes (Startup India, Fund of Funds) |
| 5. CIBIL Score Requirement | Minimum 600+, some allow 550+ with strong business banking | Mostly 700+, below that loan rejection chances high | CIBIL not always mandatory, many schemes consider business idea & social background more important |
| 6. Interest Rate | 14% to 28% p.a. (depends on risk, tenure, unsecured nature) | 8% to 18% p.a. (home loan lowest, unsecured biz loan highest) | 4% to 12% p.a., sometimes 0% for specific subsidy/grant components |
| 7. Repayment Tenure | 6 months – 3 years (short-term working capital) | 1 year – 10 years (flexible EMI-based repayment) | 3 to 7 years usually, some schemes offer moratorium period (no EMI for 6–12 months initially) |
| 8. Collateral Requirement | Mostly unsecured, some NBFCs take post-dated cheques or bank mandate | Secured or unsecured both (based on loan type and amount) | Mostly collateral-free (PMEGP, CGTMSE), but detailed paperwork needed |
| 9. Processing Speed | Very fast – 24 hrs to 5 days max | Moderate – 7 to 15 days (depending on compliance & internal approval system) | Slow – 15 to 60 days (official file movement, bank tie-ups, physical verifications) |
| 10. Processing Charges | 1% to 5% of loan sanctioned + GST | 0.5% to 2% + GST | ₹1000 to ₹6500 (fixed in schemes like PMEGP, Startup India, DPIIT etc.) + documentation fees |
| 11. Paperwork | Minimum: PAN, Aadhaar, GST, Bank Statement, KYC | Moderate to heavy: ITRs, financial statements, loan justification, property papers | Heavy: Detailed Project Report (DPR), Udyam Certificate, Caste/Women proof, Self-declaration, Income certificate, Quotation, Application Form, Affidavit, etc. |
| 12. Government Involvement | ❌ No direct govt. support, private funding | ✅ Linked to some govt. schemes like Mudra, CGTMSE, SIDBI, but bank's discretion | ✅ Fully government-run programs – financial + technical support |
| 13. Subsidy Available | ❌ Not applicable | ⚠️ Rare (only if linked to govt. scheme) | ✅ Yes – Margin Money Subsidy (PMEGP: 15–35%), CGTMSE Credit Guarantee, Interest Subsidy (under Stand-Up India, Dairy Infra Fund, etc.) |
| 14. Tech-Friendliness | ✅ High – App-based onboarding, e-signature, API-based statement fetch | ⚠️ Medium – Mostly offline process or limited online form | ❌ Mostly offline/portal-based, often involves physical document submission & multiple departments |
| 15. Examples | LendingKart, InCred, Clix Capital, Shriram Finance, NeoGrowth | SBI, HDFC, ICICI, Axis Bank, Bank of Baroda | PMEGP (via KVIC), Mudra (via banks), CGTMSE (via SIDBI), Stand-Up India, Startup India Seed Fund, Dairy Infrastructure Fund, Women Entrepreneurship Platform (WEP), DPIIT schemes etc. |