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Business loans in Gujarat

Business opportunity & landscape:

By Shubham jainPublished about a year ago 7 min read
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Gujarat has been entitled as "the Jewel of the West," due to its culture, places, religions, and business opportunities. Business runs in the veins of this industrial State, which has bestowed India with the gems of the business world like Ambani, Adani, and other prominent Gujarati Businessmen.

Moreover, being the State's largest producer of oil and gas across the country, it is home to Gujarat State Petroleum Corporation Ltd. (GSPC).

Cities like Surat, Ahmedabad, Palanpur, Bhavnagar, Valsad, and Navsari are among the cities in the State that have diamond processing and trading facilities.

About 80% of the treated diamonds and 95% of the exported diamonds from India come from Gujarat. Surat controls 65% of the Indian diamond market.

Besides this, Gujarat is immensely popular for its unforgettable villages and cities with rich tourism attracting tourists from around the globe.

With India's Account Aggregator framework which introduced in 2020, started to evolve as consent-based data sharing platform. This could be huge for the financial services in Gujarat. You can read more about the Account Aggregator framework here.

One of the most staggering things about the State is that Surat is the richest city of Gujarat, with an average income of INR 4,50,000 annually for each household. In this article, we will study the credit opportunities available in Gujarat.

Why do you need a business loan?

Commencing a new business might take a lot of work for some people. One of the initial tasks is to apply for a business loan. Small business loans are becoming widespread and frequently seen as the first step in launching a new company.

The business loan is the most common financing in the contemporary corporate environment. These loans are simple to obtain and offer many advantages that make them the ideal choice for most firms, including flexible repayment choices, low-interest rates, and more.

Given the selection, selecting the appropriate loan for your company might be challenging. As a result, you must see a financial counselor for assistance to help you establish how much capital you need and what kind.

This content will guide you through the various banks and NBFCs available in Gujarat.

Reasons you should take a business loan in Gujarat:

There are various reasons one can opt for a business loan in Gujarat. Let's go through the various reasons:

Surat, the wealthiest city in Gujarat, refines over 80% of the diamonds. To start a business in Diamond trade or refining technology, business people will require huge capital and thus can opt for credit options.

From Sabarmati Ashram to sites like Dandi attracts huge tourists' attention. Thus, you will require capital if you are commencing a tourism business.

The State of Gujarat is popular when it comes to Hybrid cotton, power looms, spinning units, and composite mills. Moreover, while commencing a business in the textile industry, individuals can opt for credit from banks.

After the launch of the Dholera Smart City Project in Gujarat, investing in residential areas has become a lucrative business opportunity. Individuals can take loans for the same purpose.

Moreover, about 500 big and medium-sized industrial units, 16,000 small industrial units, and various factory sector units make up Gujarat's chemical industry. This, too, can be an excellent opportunity to commence your business in this sector.

Gujarat is one of the best places to take a business loan and start a business. With the latest developments in financial markets and products like OCEN (Open Credit Enablement Network) are changing the business landscapes. Rad more about OCEN and how it is revolutionizing the finance world here.

Top 5 Banks and NBFCs offering Loans in Gujarat:

Bajaj Finserv:

Bajaj Finserv is a non-banking financial institution (NBFC) company headquartered in the city of Pune, Maharashtra. According to the data in 2022, the lending and wealth management institution is ranked third in the finance and insurance category across India.

Major highlights:

Loan eligibility: Businesses with three years of work history can acquire a loan from Bajaj Finserv.

Loan amount: Funds small and medium-scale businesses providing a credit of up to INR 45 Lakhs

Loan tenure: The loan tenor is flexible and can be extended upto 84 months.

SBI Bank:

With more than 24000 bank branches and more than 59000 ATMs spread out over the nation, SBI is one of India's largest public sector banks. Their main motive for offering business loans in West Bengal is to support all small businesses. SBI wants all small businesses to create their current and fixed assets.

Major highlights:

Loan eligibility: Self-employed people, professionals, and business owners are eligible for this loan.

Loan amount: A loan from an MSME can range from 10 lakhs to 52 lakhs.

Loan tenure: 60 months is the repayment tenure for small business loans.

Citi Bank:

Citi Bank is one of the best business loan providers in India and offers you a wide range of loans for your company's operating capital. Given that they have a network in more than 100 countries, this loan is most appropriate for you if your business operations take place abroad. You should at least have a cibil score of 600 to get a business loan from Citi bank. Your chances of getting the loan increase when you have 700 points in the cibil score.

Major highlights:

Loan eligibility: You should at least have a cibil score of 600 to get a business loan from Citi bank.

Loan amount: The minimum loan amount is INR 10,00,000, and the maximum is 1,50,00,000.

Loan tenure: The repayment tenure ranges between 12 and 120 months.

IDFC Bank:

It is a top-notch bank that provides loans for businesses, allowing you to buy equipment, improve your operations, or meet any other needs your company may have. However, you should be aware that if you obtain a loan from IDFC Bank, you will be required to repay it through a set number of equal monthly instalments.

Major highlights:

Loan eligibility: The Business Installment Loans program, which is open to businesses, professionals, and non-professionals.

Loan amount: A loan ranging from INR 1 Lac to INR 9 Lac.

Loan tenure: The loan repayment period is 4 years.

L&T Financial Services:

L&T financial holdings (LTFH) is one of the leading non-banking financial services companies promoted by the Larsen & Turbo group of companies. It is focused on a variety of products and services, including rural, housing, mutual funds, and infrastructure finance.

The NBFC is expected to touch a growth of seven-eight per cent in the year 2022. It offers financial products in the housing sector, business loans, and vehicle finance, among others.

Major highlights:

Loan eligibility: The minimum turnover must be between 80 lahks to 250 crores and the business should be running for three years.

Loan amount: It can range from INR 5 Lakh to INR 50 Lakh.

Loan tenure: Loan tenure is up to 60 months.

Thus, to commence or either to expand your business, you can take credit from the aforementioned banks and NBFCs. However, we put forth OneNDF, which is one of the best credit lending marketplaces for Small and medium businesses connecting SMEs to the leading banks for their credit requirements.

Now if you are an entrepreneur and looking to start your own business, then you should read this article on MSMEs. It covers all the aspects of an MSME, right from how you can register your business with the Government of India to what role they play in the development of the nation. . Click here.

FAQs:

1. Which business is most profitable in Gujarat?

The business of gems and jewelry is the most profitable business of Gujarat.

2. Which business in Gujarat requires low investment?

Chemical manufacturing is a sector that doesn’t require much investment.

3. What is the minimum turnover required to take a loan from L&T Financial holdings?

The minimum turnover required is 80 Lac

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About the Creator

Shubham jain

Hi, I am Shubham jain. I am SEO Expert and blogger. I am work as a SEO Intern in OneNdf.

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