How to Get a Business Loan for Rental Property?

Hi there. I came across your question regarding how to apply business loan. I had applied for the same a couple of years back. Let me guide you through the complete online process. Keep reading to gain all the information.

Business loan apply online process

• Visit the Udyami Mitra

  website

  .

• Make a login by filling in and submitting the required details and authenticating your number via OTP.

• Next, enter the loan amount and register the self-explanatory form, where you will be asked to fill in the following details:

  1. Personal information, such as your email, gender, category of applicant, city, state, district, residence pincode, residence type, and minority (if applicable).

  2. Professional information, including educational details, job experience, present employer, number of months in the current employment, current gross annual income, nature of business, field of interest, skill training program in the field of interest (yes or no), professional experience in the field of interest (yes or no), any previous loan (yes or no).

  3. Selection of service from the Udyami Mitra portal, including self-applying for business loans, project identification, and help in filling out loan applications.

• Enter all the details asked in the next section.

• Upload all the documents, like the ID proof, address proof, quotation document, etc. You will be able to do so through the dropdown in the form.

• Read the declaration form and do as directed.

I hope my answer helps you to know the process for applying for business loan to buy rental property.

Business loans are a type of loan that can be used to meet the needs of growing small or large businesses. Such loans can be obtained from banks, non-banking financial companies, or other financial institutions. To start a business, you will need a lot of money, so let me share how to get a business loan for rental property to help you grow your business. Read this answer to learn the eligibility criteria and interest rate of such loans.

Can I get a business loan for rental property?

Yes, you can get a business loan for rental property. Let me now discuss the various types of business loans. There are mainly two types of business loans, 

Secured business loans and Unsecured or Collateral free business loans.

• Secured business loans

Such loans are secured by a personal guarantee or a pledge of assets or property. In such loans, the lender has all the rights to seize the collateral in case the applicant fails to pay back the loan. It can further be divided into two types-

• Secured by collateral loan-

In this type of business loan, a property mortgage, government securities, savings account, fixed deposit certificates, gold, and other precious metals are pledged.  

• Secured by Guarantee

Secured loans can be provided on the basis of a guarantee. You can use another person’s possessions like gold, real estate, or other assets as collateral while availing of a loan.

• Unsecured business loans or Collateral-free Business Loans

An unsecured business loan is given based on your business creditworthiness. It evaluates your income, financial papers and other important aspects. Such loans are beneficial to your business from various aspects- including expansion, equipment purchases, inventory management and more.

Visit a bank or other financial institution and apply for a commercial loan. To avail of a business loan, you will need to be

• Self-employed, a proprietor, involved in manufacturing, trading, services or more

• The business must have a turnover of Rs 40 lakhs

• The applicant must be in the business for a minimum of 3 years and must have 5 years total business experience

• The business must have a Minimal Annual Income of Rs 1.5 lakhs

• The applicant must be at least 21 years old and not older than 65 years.

Visit the institution and learn how to get a commercial loan for rental property. Each bank has its own set of eligibility criteria, so first go through them and then apply for the loan. These are the basic requirements you must meet, but there can be many more. 

I hope you have understood how to get a business loan for rental property.