A commercial loan is a financial instrument that businesses can avail of to meet their short-
term capital needs. These loans typically have simpler eligibility criteria and application
processes. Thus, making it easier to apply for business loans.
Commercial loans are especially beneficial for small businesses that may not have enough
funds. Today we will explore how small businesses can apply for business loans. Additionally, it
gives you important details about commercial loans you must keep in mind.
Features of Commercial Loans
Commercial loans are only provided to business entities and not individual consumers. Here are
some key features of commercial loans that you must make a note of:
1. Classified Based on Terms
Commercial loans are offered for a short period of time, generally 1 to 5 years. It can
sometimes be given for a longer period of time as well, depending on the loan purpose and the
lender.
2. Secured and Unsecured Options
As a business, you will have the option to choose between a secured or an unsecured
commercial loan. In essence, it means whether or not you will have to provide security or
collateral to the lender. Typically, secured loans have a lower interest rate because of the
security you offer. This reduces the risk for the lender.
3. Interest Rates
There are two types of interest rates for you to choose from: fixed and floating interest rates.
For fixed rates, the interest rate remains unchanged throughout the tenure, while for floating
interest rates, the rate changes based on market conditions.
How to Apply for Commercial Loans as a Small Business in India
The entire process of applying for a business loan in India is very simple. To apply for a
commercial loan as a small business in India, first define your finance requirements and
purpose, whether they are for working capital, equipment, or expansion. Ensure that your
company meets basic qualifying requirements such as a minimum operational history and a
clean credit record. Gather important documents including GST registration, bank statements,
ITRs, and business evidence. Prior to applying, evaluate loan offers from banks and NBFCs
based on interest rates, terms, and collateral requirements.
Types of Loans
There are three categories of loans offered by TJSB Bank - Fund based, non-fund based, and
Special Schemes. Fund-based loans include cash credit and term loans. Looking for the right loan?
Take a quick tour of the options below to find the one that best fits your needs.
1. Industrial Solar Scheme
This loan supports businesses looking to adopt solar energy solutions. It covers the cost of
installing solar power systems for industrial or commercial use, promoting green energy and
lowering long-term energy costs.
2. ODS Drop Against Property
This is an overdraft facility secured against commercial or residential property. It provides
flexible fund access where interest is charged only on the utilized amount, ideal for managing
irregular cash flow needs.
3. Easy Credit
A flexible, multipurpose credit option for SMEs and business owners. Easy Credit is quick to
process, with minimal documentation and tailored repayment plans to suit short-term capital
needs or operational expenses.
4. FLEET Term Loan
Specifically designed for businesses operating transportation fleets. It helps finance the
purchase or replacement of commercial vehicles under structured EMI plans, enabling
uninterrupted logistics and supply chain operations.
5. SME Loan
Tailored for Small and Medium Enterprises, this loan supports business expansion, machinery
purchase, or working capital needs. It features competitive interest rates, quick processing, and
options for both secured and unsecured lending.
6. Asset Backed Credit
This loan is secured against existing business assets like property. It offers a higher loan amount
with flexible terms, ideal for businesses looking to scale or refinance at better terms.
Who Can Borrow?
The following entities can avail of these commercial loans:
- Proprietorship
- Partnership
- Private limited companies and public limited companies.
TJSB Bank also lists the securities you can provide as a company. These include stocks,
receivables, immovable properties, movable machinery and equipment, and more.
of current bank accounts are:
How to Apply for a Business Loan?
- Visit TJSB Bank’s Commercial Loan webpage.
- Select the loan type.
- Read all the details.
- Click on the “Enquire Online” button.
- A new window will open. Fill in the necessary details and submit
the form.
- A representative from TJSB Bank will contact you.
You can also visit your nearest TJSB branch to apply for a commercial loan. Our representative
will guide you through the process and help you avail the loan.
Conclusion
Securing a commercial loan can be of significant value in addition to a small business. Rapid
access to finances can help them seize growth opportunities and manage unexpected expenses.
They can scale their business, enter into new markets, and increase profitability.
Apply for a commercial loan as a small business with TJSB Bank at attractive interest rates to
multiply your business growth.
