What Is a Startup Loan?
A Startup Loan is a financial product designed to help new businesses and early-stage entrepreneurs fund operations, product development, marketing, hiring, and infrastructure setup.
In 2026, startup loans are available through banks, NBFCs, fintech platforms, and government-backed schemes.
Key Features of Startup Loans
- Designed for new and early-stage businesses
- Secured and unsecured loan options
- Government-backed schemes available
- Flexible repayment structures
- Digital application and fast approval
Startup Loan Interest Rates 2026
Interest rates depend on business model, promoter profile, credit score, and loan type.
| Lender Type |
Interest Rate (p.a.) |
Loan Amount |
Tenure |
| Public Sector Banks |
8.75% – 12.50% |
Up to ₹50 lakh |
Up to 10 years |
| Private Banks |
11.00% – 18.00% |
Up to ₹75 lakh |
Up to 7 years |
| NBFCs & Fintechs |
14.00% – 28.00% |
Up to ₹1 crore |
Up to 5 years |
Eligibility Criteria for Startup Loans
- Registered business entity
- Clear business plan or proposal
- Promoter age between 21–65 years
- Good personal credit score
- Viable revenue or growth potential
Documents Required
- Business registration certificates
- Business plan or pitch deck
- Promoter identity and address proof
- Bank account statements
- Income tax returns (if applicable)
- Financial projections
Startup Loan EMI Example
If you take a startup loan of ₹15,00,000 at 15% interest for 5 years:
- Monthly EMI: ₹35,700 (approx.)
- Total interest payable: ₹6,42,000 (approx.)
- Total repayment amount: ₹21,42,000 (approx.)
Advantages and Disadvantages
Advantages
- No equity dilution
- Quick access to funds
- Improves business credit profile
- Multiple lender options
Disadvantages
- Higher risk for new businesses
- Strict eligibility checks
- Higher interest for unsecured loans
How to Choose the Best Startup Loan in 2026
- Compare government and private loan options
- Check total loan cost and hidden charges
- Choose tenure based on cash flow
- Review lender startup experience
- Understand repayment flexibility
Frequently Asked Questions (FAQs)
Can a new startup get a loan without revenue?
Yes, some lenders and government schemes fund startups based on business potential.
Is collateral mandatory for startup loans?
Not always. Many startup loans are unsecured.
Are government startup loans available?
Yes, several government-backed schemes support startups.
How fast can a startup loan be approved?
Approval timelines range from a few days to a few weeks.
Author: All Finance Store Startup Research Team
Expertise: Startup & New Business Finance
Last Updated: January 2026
Disclaimer: This page is for informational purposes only. Startup loan terms, eligibility, and interest rates vary by lender. Always verify details with official sources before applying.