Term Loan for Business

Term Loan Details

Scaling a business takes capital. Whether you need to buy equipment, expand operations, or manage a large one-time expense, funding gaps can stall real progress. A term loan gives you a fixed lump sum, repaid in equal monthly instalments over a set period - so you always know exactly what you owe and when.

Through Indifi's lending partners, businesses across India can access term loans of up to ₹50 Lakh, with interest rates starting at 1.5% per month, and loans disbursed in as little as 48 hours, subject to eligibility and lender approval.

What is a Term Loan?

A term loan is a fixed loan amount borrowed for a specific period, repaid through equal monthly instalments (EMIs). Unlike a revolving credit line, the amount is disbursed upfront, and the repayment schedule is fixed from day one - making cash flow planning straightforward.

Businesses typically use term loans for equipment purchases, office expansions, inventory build-up, or hiring. If you have a one-time, defined capital need with a predictable payback timeline, a term loan is usually the right fit.

Types of Term Loans

Short-term loans (under 1 year): Suited for working capital top-ups, seasonal inventory, or bridging a short revenue gap. Repayment is faster, so they work best when cash inflows are predictable and imminent.

Medium-term loans (1-3 years): A practical option for equipment purchase, shop renovations, or team expansion. The longer repayment window keeps monthly EMIs manageable for growing businesses.

Long-term loans (3+ years): Designed for significant capital investments such as machinery, real estate, or large-scale infrastructure. These carry lower monthly EMIs but require stronger credit and often involve collateral.

Secured vs unsecured term loans: Secured loans require collateral such as property or fixed deposits. Unsecured term loans require no collateral - approval depends on business performance and creditworthiness. Indifi's lending partners offer unsecured term loans, meaning no assets need to be pledged.

Term Loan vs Working Capital Loan: Which One Do You Need?

Both products serve businesses, but they solve different problems. Understanding the distinction helps you choose the right financing for your situation.

Term loan vs working capital loan comparison

Parameter	Term Loan	Working Capital Loan
Purpose	One-time capital investment	Day-to-day operational expenses
Amount	Up to ₹50L	Based on business cash flow
Tenure	Up to 36 months	Typically up to 12 months
Repayment	Fixed EMIs over tenure	Flexible or short-cycle repayment
Best For	Equipment, expansion, large capex	Inventory, payroll, short-term gaps
Collateral	Not required on Indifi's platform	Not required on Indifi's platform

Choose a term loan for defined, one-time investments with a clear payback horizon. Choose a working capital loan when you need to manage day-to-day cash flow or bridge a short seasonal gap.

Advantages of a Term Loan

• Predictable repayments

  Fixed EMIs from the first month mean you can plan cash flow without surprises. You know your exact monthly obligation throughout the tenure.

• No collateral required

  Term loans through Indifi's lending partners are unsecured. No property, no fixed deposits, no assets need to be pledged to access financing.

• Funds for defined business goals

  Because the full amount is disbursed upfront, you can deploy capital immediately for planned investments such as equipment, renovation, or hiring.

• Flexible tenure

  Choose a repayment period that suits your business cycle - shorter for faster payoff, longer to keep monthly EMIs low. Subject to lender eligibility criteria.

• Fully online process

  Apply, upload documents, and accept your offer entirely online. No branch visits, no physical paperwork required.

• Things to keep in mind

  Prepayment may carry charges: Some lending partners levy a prepayment or foreclosure fee if you repay early. Check the loan agreement terms before accepting.

  The rate depends on your profile: The starting rate is 1.5% per month. Your actual rate is determined by the lending partner based on your credit score, business vintage, and financials.

  EMI commitment is fixed: Unlike a revolving credit line, a term loan carries a fixed monthly obligation. Ensure your cash flows comfortably support the EMI before applying.

Eligibility and Documents for a Term Loan

You may be eligible if:

Entity types: Sole Proprietorship | Partnership Firm | LLP | Private Limited Company | One Person Company

Documents required:

• PAN card (business and proprietor/director)
• Aadhaar card of authorised signatory
• Business registration proof (GST certificate, trade licence, or incorporation document)
• Last 6-12 months bank statements
• GST returns (latest available)
• ITR for the last 2 years (may not be required for businesses with turnover under ₹5 Crore and loan amount under ₹15 Lakh, subject to the lending partner's assessment)

What Affects Your Term Loan Approval

• CIBIL score: A score of 700 or above improves your chances of approval and can help you qualify for lower interest rates, subject to lender policies.
• Business vintage: Lenders typically prefer businesses operating for at least 2 years, as it demonstrates financial stability and repayment capacity. However, Indifi may approve businesses with a vintage of at least 1 year, subject to a strong business profile and eligibility assessment.
• Annual turnover: Higher and consistent revenue signals lower risk to lenders and directly influences the loan amount you may be eligible for.
• Industry type: Certain sectors carry a higher perceived risk, which can affect loan terms, approval timelines, and the rate offered by lending partners.
• Existing debt: A high existing debt-to-income ratio reduces repayment capacity in the lender's assessment and may limit the loan amount sanctioned.
• Bank statement consistency: Regular credit entries and stable cash flows in your bank account strengthen your application considerably.

How to Apply for a Term Loan Online

1. Visit Indifi.com: Go to the term loan page. Time: 1 minute.
2. Fill basic details: Enter your business name, turnover, loan requirement, and contact information. Time: 3-5 minutes.
3. Upload documents: Submit KYC documents, bank statements, and proof of business digitally. Time: 5-10 minutes.
4. Receive your offer: Indifi's lending partners review your application and share a loan offer with you. Time: within 48 hours, subject to eligibility and lender assessment.
5. Accept and receive funds: Accept the offer, e-sign the agreement, and the funds are credited to your account. Subject to lender processing timelines.

Why 1,60,000+ Businesses Choose Indifi

• Technology-driven matching: Indifi's platform connects your application to multiple lending partners, improving your chances of finding a suitable offer.
• 400+ cities covered: Businesses across metros, Tier-2, and Tier-3 cities have accessed financing through Indifi's network.
• Minimal documentation: The application process is designed for small business owners - no excessive paperwork, no branch visits.
• Fast turnaround: Loan offers can arrive in as little as 48 hours after a complete application, subject to lender assessment and eligibility.
• Industry-specific approach: Indifi works with businesses across retail, manufacturing, services, and trade, tailoring access to lenders familiar with your sector.