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₹50 Lakh Business Loan — Where Your File Gets Read, Not Scored

Here your file stops being scored and starts being read. Audited numbers, a site visit, questions about your buyers — and security in most cases. The preparation matters more than the application.

Last reviewed · Money Bharti is a loan marketplace, not a lender

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10 Lacs+
Customers Served
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100+
Banks & NBFCs
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₹2000Cr+
Loans Disbursed
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₹2 Cr
Max Loan Amount
Up to 5 Yrs
Tenure Available
2 Yrs
Minimum Vintage
3-7 Days
Typical Approval

Below this, software decides. Here a credit officer opens your financials and works through them. That changes what matters: not just whether the numbers clear a threshold, but whether they hang together and whether you can explain them.

What a credit officer opens Audited financials, 3 years Debtor ageing — who owes you, how overdue Buyer concentration Existing debt across all lenders A visit to your premises Every one of these can raise a question. Prepare answers.
Turnover usually
₹2 crore+
Security
Often expected
Timeline
2 – 4 weeks
Financials
Audited, 3 years
Site visit
Expect one

What actually gets examined

Three years of audited financials. Not just the profit line. Ratios — current ratio, debt to equity, interest coverage — and the direction they have moved. A business whose profit rose while its debt rose faster is telling a different story from one where both improved.

Debtor ageing. Who owes you, how much, how overdue. Concentration and ageing both get probed; a large balance past ninety days will be discounted whatever your books say.

Buyer concentration. One client representing most of your revenue is a risk that will be priced, and asked about directly.

Total existing debt. Across every lender, including facilities you may not think of — an overdraft in another bank, equipment finance, a director's loan. Underwriters pull this from the credit reports, so disclosing it upfront reads far better than having it discovered.

Related-party transactions. Money moving between the business and entities you control gets attention. There is nothing wrong with it, but be ready to explain it.

A site visit. Someone will come and look. A working unit with stock, staff and activity supports the numbers. A quiet premises does not.

Security at this level

₹50 lakh unsecured is available, but the field narrows and the file has to be strong. In most cases you will be asked for one of:

  • Property — cheapest, longest tenure, three to six weeks for valuation and legal work
  • CGTMSE cover — collateral-free with a guarantee fee, and worth asking for explicitly
  • Hypothecation of stock and receivables — where the facility is working capital
  • A lien on fixed deposits — sometimes a partial margin rather than full security

Prepare the file before you approach anyone

At this size the difference between a three-week sanction and a three-month one is almost entirely preparation. Have the audited financials, the debtor ageing, the GST-to-ITR reconciliation and a note explaining anything unusual ready on day one. Underwriters form a view of the borrower partly from how the file arrives, and a well-organised submission genuinely moves faster — not because anyone is being generous, but because there is nothing to chase.

Structure it as two facilities where it is really two needs

A ₹50 lakh requirement is frequently a machine plus an operating cycle. Financed as one term loan you pay term pricing on money you need for weeks at a time, and the limit that should have covered your cycle does not exist.

Equipment finance for the asset, secured by the asset, plus a working capital limit sized from your actual cycle, is almost always cheaper and more useful than a single ₹50 lakh term loan. The loan types page works through which is which.

Frequently asked questions

Q1. Do I need collateral for ₹50 lakh?
Not always, but it is commonly expected. Unsecured is available to strong files, and CGTMSE cover extends collateral-free credit well beyond this amount for Udyam-registered enterprises.

Q2. What turnover is needed?
Around ₹2 crore is typical, though serviceability from declared cash profit is the actual test. A high-turnover, low-declared-income business will be offered materially less.

Q3. Will they visit my premises?
Almost certainly at this size. It is a routine verification that the business exists and operates at the scale claimed.

Q4. Are audited financials mandatory?
For companies and LLPs, yes. Proprietorships and partnerships below the audit threshold may submit CA-certified statements with the ITR, but audited accounts are expected at this level regardless of entity type.

Q5. How long does ₹50 lakh take?
Two to four weeks unsecured or CGTMSE-backed, three to six weeks if property is involved. Most of the variation is document readiness rather than lender speed.

Find out where your file stands before you submit it

Money Bharti assesses your financials, both credit reports and existing obligations against the policies of RBI-registered banks and NBFCs, so gaps surface before an underwriter finds them. Soft enquiry only.

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