Business Loan Assistance — Term Loans, Working Capital & Mudra
A business loan is approved on the strength of the file, not just the idea. We help MSMEs choose the right loan, build the file a bank expects and answer its queries until it decides. We are not a lender and cannot promise a sanction. Our business loan assistance makes your case clear and complete.
What it is
Business loan assistance is help with getting bank or NBFC finance for your business. It starts with choosing between a term loan and a working capital limit. Then come clean books and returns, the project report and CMA data, the application and the bank’s queries.
For micro and small enterprises, the RBI’s rules give real protection. Banks are mandated not to take collateral for loans up to ₹10 lakh to micro and small units. Loans covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) can go up to ₹10 crore without collateral. For loans up to ₹25 lakh, the bank should decide within 14 working days of a complete application.
Who it applies to
Manufacturers buying machinery
Picture a Faridabad auto-parts unit adding a CNC machine for a new order. That is a term loan, repaid in instalments and backed by a project report.
Traders and service firms short of working capital
A wholesaler whose buyers pay in 90 days while suppliers want cash in 30 needs a cash credit or overdraft limit, not a term loan.
First-time and small borrowers
First-time borrowers, including micro units applying under Pradhan Mantri Mudra Yojana for up to ₹10 lakh.
Why it matters
Match the loan to the need
Here is the catch: buy a machine out of your cash credit limit and there is nothing left for stock. Long-term assets need long-term money.
Get a faster answer with a complete file
Missing papers and GST turnover that does not match the ITR are common reasons a file sits on a desk. Business loan assistance starts here: fix them before you apply.
Use your rights as an MSE
Collateral-free limits, CGTMSE cover and written reasons for rejection are part of RBI’s framework for micro and small enterprises. Quote them when you talk to the branch.
Which loan fits your need
| Need | Usual product | What the bank looks at |
|---|---|---|
| Machinery, factory, expansion | Term loan | Project report, projected cash flows, debt service coverage ratio (DSCR) |
| Stock and debtors | Cash credit or overdraft | Turnover, stock and debtor levels, CMA data |
| Small first loan for a non-farm micro unit | Mudra loan: Shishu up to ₹50,000, Kishore up to ₹5 lakh, Tarun up to ₹10 lakh | Business plan, KYC, basic financials |
| Loan without property to mortgage | CGTMSE-covered loan, up to ₹10 crore | Udyam registration, viability of the business |
For micro and small enterprises, RBI’s guidance says working capital limits up to ₹5 crore should be computed on at least 20% of projected annual turnover. If you need a detailed report for a term loan, see our project report for bank loan service.
Documents required
KYC and registrations
- PAN and Aadhaar of the proprietor, partners or directors
- Business PAN, GST certificate and Udyam registration
- Partnership deed, LLP agreement or MOA/AOA
- Address proof of the business premises
Financials
- Income tax returns for the last two or three years
- Audited or CA-prepared financial statements
- Bank statements for the last 6 to 12 months
- GST returns for the last year
For the proposal
- Project report or CMA data with projections
- Quotations for machinery or assets
- Stock and debtor statements for working capital
- Details of existing loans and their repayment
How it works
Size the loan to the need
We look at what the money is for, your recent accounts and existing borrowings. Then we suggest the loan type and an amount the numbers can support.
Reconcile GST, books and ITRs
We match GST returns with the books and returns, clear pending filings and fix the gaps a credit officer would spot first.
Build the project report and CMA data
We build projected financials, the repayment schedule and DSCR, in the format the bank uses.
Apply and answer the bank’s queries
You submit the application to the bank or NBFC of your choice. We answer the bank’s queries on the financials and help with any site visit.
Read the sanction letter before you sign
We go through the interest, margin and covenants with you, then help with the stock statements and certificates the bank asks for later.
Timelines
14 working days for MSE loans up to ₹25 lakh
RBI expects banks to decide on a complete application within 14 working days, give an acknowledgement with a serial number, and convey the main reasons for rejection in writing.
Latest ITR before you apply
Banks want your latest income tax return. For FY 2025-26, the due date is 31 August 2026 for non-audit businesses and 21 November 2026 for tax-audit cases.
Yearly review of working capital
Banks usually review cash credit and overdraft limits every year on fresh financials. Keep each year’s accounts ready on time.
What happens if the file is weak
Rejection or a smaller limit
Low declared income, GST and ITR figures that disagree, or late EMIs elsewhere can mean a rejection, or a limit well below the need.
Demand for collateral
If the viability case is unclear, a lender may ask for property security even where a CGTMSE-covered loan was possible.
Months lost to back-and-forth
RBI’s 14-day clock runs from a complete application. Every missing paper pushes it back.
Frequently asked questions
Do you give the loan yourselves?
No. Taxhint Advisors is an advisory firm, not a bank or NBFC, and we do not lend money or guarantee a sanction. We prepare your financials, project report and documents, and help you answer the lender’s questions. The lending decision is always the bank’s or NBFC’s. What we can promise is a complete, consistent file that gives your application the best fair chance.
Can I get a business loan without collateral?
Yes, in many cases. RBI has mandated that banks do not take collateral for loans up to ₹10 lakh to micro and small enterprises. Beyond that, loans covered by CGTMSE can go up to ₹10 crore without collateral security. The business must be eligible and viable, and Udyam registration is usually the starting point. We help you present the case so the lender can consider the guarantee route.
What is a Mudra loan and who can get it?
A Mudra loan is a loan under Pradhan Mantri Mudra Yojana for non-corporate, non-farm small and micro enterprises. It comes in three categories: Shishu up to ₹50,000, Kishore up to ₹5 lakh and Tarun up to ₹10 lakh. MUDRA itself does not lend; loans come through banks, regional rural banks, small finance banks, MFIs and NBFCs. MUDRA engages no agents, so apply directly to the lender, with your papers ready.
How much working capital can a small business get?
For micro and small enterprises with limits up to ₹5 crore, RBI’s guidance is to compute working capital on at least 20% of projected annual turnover. So a unit projecting ₹1 crore of turnover would be assessed for at least ₹20 lakh. The actual limit also depends on your stock and debtor cycle and margins. We prepare the projection and CMA data to support the amount you ask for.
How long does a bank take to decide?
For loans up to ₹25 lakh to micro and small enterprises, RBI’s guidance is a decision within 14 working days of a complete application. The bank should give an acknowledgement with a serial number and, if it rejects the loan, tell you the main reasons in writing. Larger loans take longer because of appraisal and site visits. A complete file keeps the clock running in your favour.
Is Udyam registration needed for a business loan?
It is not a legal precondition for every loan, but it is how a bank identifies you as an MSME. MSME benefits such as collateral-free limits and CGTMSE cover depend on that status. Registration on the Udyam portal is free. Micro enterprises are those with investment up to ₹2.5 crore and turnover up to ₹10 crore. If you do not have it yet, we can file it for you before the loan application.
What is DSCR and why does the bank ask for it?
DSCR, the debt service coverage ratio, compares the cash your business generates with what it must pay each year in interest and principal. A ratio below 1 means the business cannot meet its repayments from operations. Each lender sets its own comfortable minimum. We compute DSCR year by year in your project report, so you see the same picture the credit officer will see.
My ITR shows low income. Can I still get a loan?
Possibly, but it is harder. In practice, banks size loans largely on the income and turnover in your returns and bank statements, not on what the business says it earns. A smaller first loan, a Mudra loan or a CGTMSE-covered limit may fit better. For the future, filing accurate returns on time builds the track record lenders need. We can review your last returns and suggest a realistic way forward.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for a loan application, and Udyam registration is free. Bank processing charges appear in the sanction terms.
Ready to begin?
Tell us what the money is for and share your last two years’ returns, and we will tell you which loan fits and what the bank will need.