Most lenders want to see a business that has been running for a while — often one to three years of vintage — before they lend unsecured. That doesn't mean a young business has no options, but it helps to know the realistic routes.
Why lenders ask for vintage
A track record shows the business can earn and survive. Without it, the lender has only a plan to judge. That's why new businesses often get smaller amounts, need a co-applicant or collateral, or use government-supported schemes.
Routes that can work early on
- PM Mudra Yojana — Shishu and Kishore loans for micro businesses, including new ones; see Mudra loan explained.
- Stand-Up India — for first-time enterprises by women or SC/ST entrepreneurs; see schemes for women entrepreneurs.
- CGTMSE-backed loans from member lenders; see CGTMSE explained.
- Equipment loans secured by the machine.
- A personal loan for a small, early need, if your personal income supports it.
Prepare from day one
- Register the business — Udyam, GST where needed.
- Open a business bank account and run every sale through it.
- File returns on time from the first year.
- Keep the founders' credit records clean.
- After 6 to 12 months of clean banking, your options widen considerably.
How to apply with Oxon Fintech
Share your business details once, link your bank account digitally through Account Aggregator, and see offers from our lending partners. Check eligibility and the documents first, and plan the EMI with the business loan EMI calculator.