Key Steps to Get a Small Business Loan

October 25, 2023
Updated on

A business loan is a form of financing that can help a company resolve cash flow issues, capitalize on growth opportunities, and increase its overall turnover. Small business loans in India are particularly significant, as they allow small businesses to access funds that would otherwise be unavailable, enabling them to invest in equipment and inventory, hire more staff, and drive marketing and advertising efforts. They can also be used to finance expansions and renovations or repairs, as well as to cover the cost of keeping inventory, allowing businesses to remain competitive and make the most of market opportunities. Small business loans can provide a much-needed financial lifeline during difficult times, enabling businesses to weather the storm and stay open.

In addition to helping small businesses achieve immediate goals, small business loans in India can help micro, small, and medium enterprises (MSMEs) achieve their long-term goals, such as expanding into new markets, launching new products and services, and increasing their customer base. Another significant benefit of small business loans is that they can help businesses build their credit.

Since the loans are typically repaid over a period of time, they can help establish a good credit history. This can be invaluable for businesses that need to obtain additional financing in the future and can increase their chances of approval. Banks and other lenders often require extensive paperwork and a long waiting period before approving a loan. Small business loans, however, are easier to obtain and can provide quick access to funds.

In many cases, MSMEs do not have the resources to acquire traditional financing and must rely on alternative sources of funding. Therefore, Non-Banking Financial Institutions (NBFCs) like Kinara Capital provide access to these funds, allowing small businesses to invest in their operations and increase their chances of success. However, it is critical to plan ahead of time for a loan and understand the documentation required by a lender when you apply for small business loans.

Wondering how to get a small business loan? MSMEs can obtain a small business loan by applying to a business lender and providing the necessary details and documentation. NBFCs like Kinara Capital provide collateral-free Business Loans to MSMEs to help them grow and expand their businesses. Here are the various loans offered by Kinara Capital and a guide on how to get small business loans.

Types of Small Business Loans at Kinara Capital

1. Working Capital Loan

Cash flow is the lifeblood of any business, so having access to capital is critical. Businesses, especially micro, small, and medium enterprises (MSMEs), can struggle to keep their operations running if they do not have enough capital. Thus, to maintain stable working capital, MSMEs may need to avail of working capital loans. At Kinara Capital, businesses can apply for small business loans, and get collateral-free Working Capital Loans to cover their business's short-term operational needs. These loans can assist them in maintaining a consistent cash flow, seizing new opportunities or orders by purchasing raw materials on time, and facilitating cyclical sales for companies that rely on seasonal business. MSMEs can easily take a 1-minute eligibility check for a working capital loan on Kinara's website or myKinara App and move one step closer to receiving a Small Business Loan.

2. Asset Purchase Loan

MSMEs looking to finance equipment or machinery for their business can use an Asset Purchase Loan from Kinara Capital to help support the purchase. This loan can be used to refurbish, modify, or replace existing machinery or equipment. Upgrading or repairing defective machines or appliances can also help improve the quality of the products. This increased quality will result in improved customer satisfaction, which can lead to more orders or an increase in sales. Additionally, the loan can be used to purchase new machinery or equipment, which can help streamline production processes and optimize costs. The loan also provides flexible repayment terms, allowing businesses to manage their finances better and stay on track with their payment schedule. All in all, an Asset Purchase Loan from Kinara Capital can be a great way for MSMEs to finance the purchase of machinery and equipment for their business.

3. HerVikas Loan

Kinara Capital has made it easier for women to get small business loans. This RBI Registered Systemically Important Fintech firm in India is aware that getting loans can be difficult for women entrepreneurs due to cultural biases and other systemic issues. Keeping this in mind, Kinara has come up with the HerVikas scheme that offers women entrepreneurs a 1% discount on the loan interest rate without submitting any additional documents. The scheme has made it much easier for women to get finances from Rs. 1 lakh up to Rs. 30 lakhs for business expansion. It is a great step towards bridging the gender divide in the financial sector and promoting women entrepreneurs. Kinara has taken the initiative to provide business loans at convenient terms with minimal paperwork and a fast disbursal process. This scheme is a great way to boost women entrepreneurship in the country and enhance their economic participation.

Grow your MSME with collateral-free business loans

Step-by-step Online Application Process

Now let us come to the most important part: how to get a small business loan. At Kinara Capital, we have a fully online application process. All you have to do to get a loan is follow these steps:

Quick Eligibility Check

In less than a minute, you can find out if your business qualifies for the loan! You can access the eligibility check in seven different languages available on our website for a seamless experience. 


The business and the entrepreneur are screened by validating the KYC and registration details.

Document Upload

You need to submit your KYC, applicant, co-applicant, business KYC (ID and address proof), applicant PAN Card, business registration document, last 12 months' bank statements, GST registration (if available), and business vintage proof.

Loan Approval

Once you complete the process, your loan application will be reviewed, and if everything is in place, the Kinara officers will approve your loan.                                                                                 


Once your loan is approved, you will receive the loan amount directly in your account within 24 hours.


Small business loans are an important source of financing for MSMEs to grow their businesses. They offer a variety of loan products, including term loans, working capital loans, and equipment loans, that can help MSMEs access the necessary funds to expand their operations. Small business loans from NBFCs also offer several benefits, such as minimal documentation, faster processing of applications and disbursement, etc. Small Business Loans from NBFCs are particularly beneficial for MSMEs as they provide access to capital at a much lower cost than traditional banking loans. This is due to the fact that NBFCs do not require as much paperwork and are more flexible in their lending criteria, allowing them to approve loans more quickly.

Additionally, NBFCs offer a wide range of loan products that cater to the specific needs of small businesses, allowing them to access the capital they need to grow their operations. Furthermore, loans from NBFCs are often tailored to the specific needs of MSMEs and can be used to purchase equipment, hire new staff, purchase inventory, and expand operations. This flexibility makes it easier for MSMEs to access the capital they need to grow their businesses. NBFCs offer competitive interest rates, flexible repayment terms, and quick disbursement of funds, making them an attractive option for MSMEs. NBFCs like Kinara Capital are the answer to the capital need faced by MSMEs in India as they make getting small business loans easy and smooth.

Check your Eligibility in 1-minute!

Check your Eligibility in 1-minute!

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