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Looking for an instant loan to grow your business?
Looking for an instant loan to grow your business?

Aditya Birla Finance Limited (ABFL) Business Loans

Updated on :  

08 min read.

Aditya Birla Finance Limited (ABFL) is a renowned lender that provides financing to consumers by way of home loans and personal loans and small and medium-sized businesses (SMEs). When it comes to business loans, ABFL offers a revolving line of credit, unsecured business loans, secured business loans, working capital demand loans, and supply chain financing, i.e. invoice discounting.

Here is a summary of everything you need to know about ABFL business loans.

Loan Types OfferedLine of Credit
Unsecured Loans
Secured Loans
Working Capital Loans
Supply Chain Financing – Invoice Discounting
Loan Amount Up to Rs.25 crore
Loan TenureFrom 3 months up to 12 years
Interest RateDepends on the scheme and many other factors

Types of ABFL Business Loans

Line of CreditThe lender provides a maximum loan balance to the customer to access or maintain based on their eligibility. The customer may draw the available credit line such that the drawn amount does not exceed a set limit. The money borrowed must be paid back within a specified time and specified interest rate. Note that only the money drawn or used will be charged with interest.
Unsecured Business LoanAn unsecured business loan is the financing of up to Rs.50 lakh provided for business without any collateral or guarantee. The loan is disbursed solely based on the business’s capability and the credit history of both the borrower and the business.
Secured Business LoanThis scheme is mostly for the SMEs that are looking to expand their reach and scale-up. The process involves pledging a property or providing collateral, which enables the lender to offer a significant loan amount for the overall development of the business, i.e. from Rs.1 crore up to Rs.25 crore.
Working Capital Demand LoanIt may not always be possible to have working capital at hand. There may be many points that require immediate cash, leaving you with no money for paying office rent, salaries, and other expenses. A working capital loan enables you to meet the financial needs of your business.
Invoice DiscountingConvert your receivables into cash when you need money the most. This scheme improves liquidity and ensures cash flow for your business. You can maintain your relationship with vendors and clients without taking a toll on your business flow.

Features and Benefits of ABFL Business Loans

  • Get loans to improve your business with no branch visits and minimum paperwork for amounts less than Rs.1 lakh.
  • Instant approval within 30 minutes for loans of small amounts.
  • Get unsecured loans of up to Rs.50 lakh and secured loans of up to Rs.25 crore.
  • Make repayments in easy EMIs.
  • ABFL business loans come with attractive interest rates that remain fixed throughout the loan tenure.
  • No security or collateral is required for some loan schemes.
  • The repayment tenure for such loans can vary from 3 months up to 12 years.
  • Avail of overdraft facilities through partner banks.
  • Enjoy tax deductions on the interest paid towards the loan.

Eligibility criteria

  • Proprietorship companies
  • Partnership companies
  • Public limited companies
  • Private limited companies

Documents Required

For Instant Small Loans:

  • PAN Card
  • Aadhaar number
  • Bank statement of your current account for the last year
  • Business proof that is active for a minimum of one year

Unsecured Loans:

  • KYC documents:
    • Identification Proof
    • Address Proof
    • Date of Birth Proof
    • Office Address Proof
  • PAN card of firm/company
  • Income documents
    • Normal Income group – Last 2 years financial / ITR documents
    • Repayment Surrogate – Bank statement of last 6 months
    • Bank Surrogate – Bank statement of last 6 months
  • Partnership Deed/MOA and AOA in case of partnership
  • Other mandatory documents (PF cheque and fees declaration)

Fees and Charges

Processing Fee: Up to 2% (varies from customer to customer)

Frequently Asked Questions

How long does it take for the bank to process my loan application?

On average, your business loan application’s turnaround time is 7-10 working days after receiving the complete set of documents as stated by the bank. This is mainly applicable to secured business loans.

When should I go for a Working Capital Demand Loan?

You can choose a Working Capital Demand Loan to carry on with everyday operations, such as purchasing monthly office supplies, paying rent for the office space, paying employee salaries, and others. You cannot use this loan to pay for long-term goals, such as buying office space in a new location to expand your business.

What are the benefits of the Invoice Discounting scheme?

The benefits of the Invoice Discounting scheme are:

  • Convert receivables into cash instantly
  • Build strong bonding with vendors and clients
  • Keep working capital from being used for other purposes
  • Increased sales leading to higher purchasing power
  • Faster payments leading to the possibility of cash discounts from companies
  • Quick turnaround time and simple procedures
How do I make the loan repayments?

You can make repayments using one of the methods: NEFT, RTGS, NACH, ECS, or cheque.

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