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Key Benefits of our Secured Business Loan
Higher Loan Amounts
Get a small business loan funding up to ₹15 crore by pledging your existing assets, which is ideal for long-term growth.
Flexible Repayment Terms
Choose tenures for up to 15 years, making monthly repayments manageable and cash flow smoother.
Competitive Interest Rates
Benefit from competitive rates starting at 12%* due to reduced lender risk with collateral.
Wider Eligibility
Available to startups, informal businesses, and enterprises in semi-urban or rural areas, even with limited credit history.
Customized Loan Options
Structured around your business needs, be it expansion, equipment, or working capital.
Balance Transfer with Top-Up
Already have a loan? Transfer it to IIFL Home Loans for better rates and access to additional funds.
What is a Secured Business Loan?
A Secured Business Loan from IIFL Home Loans is a simple, practical way for small business owners to raise funds by using property or business assets as collateral. It is ideal for those who may not qualify for unsecured loans but own assets like land, residential buildings or commercial buildings.
By pledging an asset, you can:
amounts
interest rates
repayment tenures
This makes secured loans suitable for various needs: business expansion, working capital, infrastructure upgrades, or managing day to day operational activities.
The loan is available to a wide range of applicants, including startups and businesses with limited credit history. With minimal paperwork, quick approvals, and transparent terms, it offers peace of mind and greater financial control. However, timely repayment is important, as the pledged asset serves as security for the loan.
Read more on Interest RatesWhy choose IIFL Home Loans for Secured Business Loan?
A Secured Business Loan from IIFL Home Loans is designed to support small and medium business owners, especially those from economically weaker sections (EWS) and low-income groups (LIG), with simple, fast, and flexible funding solutions. Here is why it could be the right choice for your business:
Interest Rates
Amounts
Tenure
Processing
Process
Calculate Your Secured Business Loan EMI
Documents Required for a Secured Business Loan
To make the secured loan application process smooth and quick, IIFL Home Loans requires only essential documents. This helps ensure faster processing and disbursal. Here is a simple checklist:
Identity & Address Proof
- Aadhaar Card
- PAN Card
- Voter ID / Driving License
- Passport
Income Proof
- Latest 6 months' bank statements
- Income Tax Returns (last 2 years)
- Profit & Loss statement
- Balance sheet (if applicable)
Business Proof
- Business registration certificate or GST registration
- MSME Udyam Registration
- Shop & Establishment certificate
- Partnership deed or company incorporation documents (if applicable)
Property Documents (Collateral)
- Property title deed
- Approved building plan (if applicable)
- Property tax receipt or possession letter
Photographs
- Recent passport-sized photographs of the applicant and co-applicant
Secured Business Loan Eligibility
To ensure small and medium business owners across India can easily access secured loans, IIFL Home Loans has kept the eligibility criteria practical and inclusive, including for women entrepreneurs seeking small business loans.
Indian citizens, either salaried or self-employed.
Applicants must be 21 to 70 years old at the time of loan maturity.
Eligible business entities include shopkeepers, retailers, wholesalers, manufacturers, and self-employed professionals.
You can pledge residential, commercial, or industrial built-up properties.
The Loan-to-Value (LTV) ratio can go up to 65%, depending on the property's market value and condition.
Co-applicants such as family members, business partners, or private companies can be added to enhance loan eligibility and access better terms.
Frequently Asked Questions (FAQ’s)
A small business loan for startups is a credit facility where a borrower pledges assets like residential or commercial property, to secure funds. It is an ideal choice for businesses seeking large loan amounts at competitive interest rates. The collateral lowers the lender’s risk, which typically results in faster approvals, longer tenures, and better terms.
Also known as a secured loan, a collateral business loan is backed by a tangible asset, such as property, which acts as security for the lender. If the borrower defaults, the lender can recover the dues by claiming the pledged asset. This type of loan is ideal for businesses that have assets but may not qualify for unsecured loans. At IIFL Home Loans, we also offer small business loans tailored for women entrepreneurs, helping them access funding with ease and flexibility.
To be eligible, applicants must:
- Be an Indian resident aged between 21 and 70 years
- Be either self-employed professionals, small business owners, traders, or part of a partnership/private limited firm
- Have a property (residential, commercial, or industrial) to offer as collateral
- Maintain a consistent income flow to support EMI payments Even those with limited credit history may qualify if they offer sufficient asset backing
Start by assessing your financial requirement and the assets you can pledge. Then:
- Visit the IIFL Home Loans website or your nearest branch.
- Fill in your details and upload essential documents.
- Await the evaluation and approval process within 30 minutes*
An SME (Small and Medium Enterprise) loan caters specifically to businesses that fall within this sector’s classification. These loans are used to manage day-to-day operations, purchase equipment, expand facilities, or meet working capital needs. With IIFL Home Loans, SMEs can avail themselves of tailored loan solutions with flexible repayment terms and lower interest rates, which can be calculated using the business loan calculator.
Getting a Secured business loan with collateral from IIFL Home Loans is easy:
- Determine the collateral you can pledge.
- Check your loan eligibility online.
- Apply for a secured business loan digitally with basic KYC, income proof, and property documents.
- The entire process is designed to be quick, paper-light, and transparent.
The loan amount can go up to ₹150 crore, depending on the market value of the pledged asset and your repayment capacity. Higher property value and stronger financials typically allow you to borrow a higher amount at better rates.
Secured business loan with collateral limits are influenced by the value of your collateral and your loan-to-value (LTV) ratio. At IIFL Home Loans, you can get the best small business loans with up to 65% of your property's market value, subject to verification and SME loan eligibility criteria.
No, a secured loan will not negatively affect your credit score if repaid on time. In fact, responsible repayment improves your credit history, enhancing your future creditworthiness. However, missing EMIs or defaulting may lead to asset seizure and a drop in your credit rating.
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