How can I get a small business loan?

A business loan provides money that must be repaid, usually with interest and fees. Start by deciding what the money will pay for and whether expected cash receipts can support repayments, including during a slow month. Approval and terms depend on the lender.

Work out the amount and repayment capacity

Separate one-time costs such as equipment from stock and working capital. Subtract the cash you can safely contribute while keeping a reserve for regular bills. Build a cash forecast that includes the proposed instalment and a slower-sales scenario. A loan that fits a good month may still strain the business when a customer pays late.

Compare offers before applying

Ask lenders for the interest calculation, fees, repayment schedule, total payable, security or guarantees, and consequences of late or early repayment. Compare offers over the same period and keep written terms. Ask what documents are needed and how long a decision may take; avoid paying an intermediary who promises guaranteed approval.

MUDRA is one starting point to discuss with a participating lender. Check current rules and terms directly, and use the application checklist to prepare. A scheme description does not establish eligibility or approval.

If your business is a DPIIT-recognised startup, ask an eligible lender about the Credit Guarantee Scheme for Startups. The guarantee protects participating lenders under scheme terms; it is not a grant and does not remove your repayment obligation. Recognition alone does not ensure approval. Compare the separate credit guarantee scheme for micro and small enterprises, which has its own conditions. Our October 2026 DPIIT update explains the latest reported figures and the earlier increase in the startup guarantee ceiling. Sources checked 29 October 2026; confirm current lender and scheme terms.

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