Ravi, a small business owner, has been running his electronics shop for three years. Sales were steady, but when the festive season approached, he saw a huge opportunity. Ravi couldn’t afford to buy the newest gadgets for his customers because he lacked the necessary funds.
Instead of letting the chance slip away, he applied for a 5 lakh business loan. Within days, he received the funds, expanded his inventory, and doubled his sales that season.
You can also take this chance. Let’s know the details..
Why Choose a 5 Lakh Business Loan?
A loan of ₹5,00,000 hits the sweet spot for many small and medium-sized businesses. It’s big enough to handle critical expenses but manageable enough to repay through structured EMIs. Here’s why it’s a popular choice:
- Working Capital Support – Manage salaries, vendor payments, and inventory with ease.
- Upgrade & Expand – Invest in machinery, office infrastructure, or store renovations.
- Boost Marketing & Sales – Fund campaigns to attract new customers and grow faster.
- Emergency Cushion – Stay financially secure during slow months or sudden disruptions.
Features of a 5 Lakh Business Loan
Fast Approvals: Digital application and minimal paperwork mean quicker processing.
Collateral-Free Options: Many lenders offer unsecured loans up to ₹5 lakh, saving you from pledging assets.
Flexible Repayment Tenure: Select repayment terms that align with your business cycle. You can get up to 36 months tenure.
Transparent Terms: No hidden fees or charges; you know what you’re signing up for.
Custom Solutions: Loans can be tailored to fit your industry and business needs.
Affordable Interest Rate: Get a lower interest rate of 22% per annum as per your creditworthiness.
Also Read: 5 Business Ideas with Zero Investment
Eligibility Criteria for a 5 Lakh Business Loan
Complete our simple criteria for loan approval:
- Age: Applicant should be between 21 to 60 years.
- Business Vintage: Minimum 1–3 years of business operations, depending on the lender.
- Maintain Bank Balance: Your bank account should maintain a minimum of Rs. 25,000 for loan approval.
- Credit Score: A CIBIL score of 700+ is usually preferred for unsecured business loans.
- Type of Business: Retailers, traders, service providers, SMEs, and professionals are eligible.
Documents Required for a 5 Lakh Business Loan
For a hassle-free application, please have the following documents nearby.
- KYC Documents – Aadhaar card, PAN card, or voter ID.
- Business Proof – Trade License & MSME Certificate
- Bank Statement– Recent 12 months Bank statements
- Address Proof – Utility bills, rental agreement, or property documents.
Also Read: InCred Business Loan
Who Can Apply for a 5 Lakh Loan?
A 5 lakh business loan is ideal for:
- Small business owners (retailers, shopkeepers, traders)
- Service providers (freelancers, consultants, professionals)
- Startups and SMEs looking for working capital
- Businesses aiming to expand operations
How to Apply for a 5 Lakh Business Loan
Applying is quick and simple with 24hrLoan. Follow these steps:
- Check Eligibility – Use our online loan eligibility checker to see if you qualify.
- Fill Application Form – Provide basic personal, business, and financial details.
- Upload Documents – Submit scanned copies of KYC, business, and financial documents.
- Get Instant Approval – Many lenders provide approval within hours.
- Receive Funds – Once approved, the loan amount is disbursed directly to your bank account.
FAQs
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Which company offers a 5 lakh business loan?
WeRize, which is our official partner, is offering up to 5 lakh digital business loans.
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What is the tenure for repayment?
1) Applicants between 21 and 60 years of age.
2) Businesses with at least 1–3 years of operations.
3) A good CIBIL score (685+) is preferred.
4) Small business owners, traders, service providers, and professionals can apply. -
How do I apply for a Werize business loan through 24hrLoan?
1) Fill out the quick online application on 24hrLoan.
2) Upload the required documents.
3) Get instant approval updates.
4) Receive funds in your bank account once approved. -
Can I prepay or foreclose the loan?
Yes, prepayment or foreclosure options may be available. It’s best to check with Werize directly for applicable charges or conditions.