FAQs - Frequently Asked Questions

A business loan at Buddy Finance provides financial support to businesses for a range of needs, such as covering operational costs, expanding operations, purchasing equipment, or managing cash flow. The application process involves submitting necessary documents like financial statements and tax returns, which are reviewed by the lender to assess creditworthiness and repayment capacity. Once approved, the loan amount, which can go up to ₹2 Crores, is disbursed, and the business repays it in fixed monthly installments over a period of 1 to 5 years. These loans are designed to help businesses grow and manage their financial needs efficiently.

You can apply for a business loan at any time when your business requires financial support. Whether you’re starting a new venture and need funds for initial operations, expanding your business by opening new locations or launching new products, or managing cash flow to cover day-to-day expenses, a business loan can help. Additionally, loans can be used for purchasing or upgrading machinery and equipment, or to support working capital needs. At Buddy Finance, we offer business loans of up to ₹2 Crores, and you can apply whenever your business needs a financial boost to achieve its goals.

• Human Resource
• Building credit for the future
• To purchase more inventory
• A business opportunity that outweighs the potential debt
• business needs fresh talent
• Tax payment
• To expand your physical location.

For more information, please refer to ELIGIBILITY CRITERIA

And many more emergency purposes.

It takes less than 48 hours for acknowledging the business loan. However, the applicant has a higher benefit of fastest loan approval over a good credit score.

• Age should be between 21 to 65 years
• CIBIL score must be 750 or more
• Annual Turnover minimum of Rs. 12 lakh and above for existing enterprises, may vary as per the lender.
• Your balance sheet will be examined by a Chartered Accountant who is registered (CA)
• Business should be in profit for the last two years.
• Business should be in operation for at least 3 years.

Following documents are required for availing a business loan

• Business proof
• KYC documents of the company
• KYC documents of the business owners
• Photo identity proof (Aadhaar card/ Driving license/ Voter ID/ Passport)
• Last one year bank statement
• GST Certificate
• Last two years Income Tax Returns
• Last two years Balance sheet and Profit & Loss accounts
• A report with detailed information about how the candidate will utilize the business loan.

The maximum loan amount you can avail of is ₹2 Crores. However, the loan amount may vary based on your business requirements, credit score, repayment capacity, and the lender's terms and conditions. Buddy Finance offers business loans to help you meet your financial needs and grow your business effectively.

A credit score of 750 or above is considered good for getting instant business loans. However, some lenders may approve loans for applicants with scores between 650 and 749, though the interest rates may be slightly higher.

The minimum turnover requirement for a loan to start a business typically varies based on the lender and the type of loan. For most lenders, the minimum annual turnover requirement for a business loan to start or expand a business is generally around ₹10 Lakhs to ₹15 Lakhs. However, this can differ based on factors such as the business's industry, financial health, and the loan amount being applied for.

At Buddy Finance, we understand that each business has unique needs, so we offer flexible terms and eligibility criteria for new businesses looking to start or grow. We take a holistic view of your business’s potential to ensure the right loan options are available, even if your turnover is lower than the typical requirements.

Eligibility for an MSME loan depends on several key factors. The business must fall under the Micro, Small, or Medium Enterprises (MSME) category as defined by the government, which typically includes businesses in manufacturing, service, or retail sectors. Additionally, businesses must meet specific turnover requirements, with micro-enterprises having a turnover of up to ₹5 crores, small enterprises up to ₹50 crores, and medium enterprises up to ₹250 crores. The business should have been operational for at least 1-2 years to demonstrate stability and financial health. A steady income stream and good repayment capacity are essential, and some lenders may also consider the credit score of the business owner. Moreover, registration under the MSME Act, such as obtaining a Udyog Aadhaar certificate, is often required. At Buddy Finance, we offer MSME loans with flexible eligibility and quick processing to support your business growth.