What is a Business Line of Credit?

A business line of credit from LoanPao provides Indian SMEs with flexible funding in 2025. Unlike traditional loans, you can draw funds up to a pre-approved limit as needed, paying interest only on the amount used. Ideal for managing cash flow, inventory, or unexpected expenses, our credit lines start at 9% p.a. with instant access via our digital platform.

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Benefits of a Business Line of Credit

Flexible Withdrawals

Draw funds as needed, up to your approved limit.

Pay-as-You-Use

Interest applies only on the amount withdrawn.

Instant Access

Access funds instantly via our digital platform.

Reusable Credit

Repay and reuse funds without reapplying.

Types of Business Lines of Credit

LoanPao offers tailored credit lines to suit your business needs:

Working Capital Credit

Manage daily operations and cash flow gaps.

Inventory Financing

Fund bulk purchases or seasonal stock needs.

Equipment Financing

Access funds for machinery or equipment upgrades.

Explore our loan products for more financing options.

Interest Rates for 2025

LoanPao partners with top lenders to offer competitive rates for business lines of credit:

  • SBI Business Credit Line: 9%–11% p.a.
  • ICICI SME Credit Line: 9.5%–12% p.a.
  • NBFC Credit Lines: 11%–14% p.a.

Rates depend on credit limit, business turnover, and CIBIL score. Use our EMI calculator to estimate costs.

Eligibility Criteria

To qualify for a LoanPao business line of credit in 2025, your business must meet:

  • Minimum 1 year of operations.
  • Annual turnover of ₹5 lakh or more.
  • Valid business registration (GST, Udyam, or equivalent).
  • CIBIL score of 650 or higher.
  • Basic business financials.

Learn more about working capital financing for additional insights.

Documents Required

Prepare these documents for a seamless application:

  • KYC documents (PAN, Aadhaar of owners).
  • Business registration certificates (GST, Udyam).
  • Financial statements (balance sheet, P&L).
  • ITR for the last 1 year.
  • Bank statements (last 6 months).

How to Apply for a Business Line of Credit

Online Application

Submit your business details via our online form.

Document Upload

Provide KYC, financials, and registrations.

Instant Approval

Get approved in 1–3 days and access funds instantly.

Apply Now

Why Choose LoanPao for Business Line of Credit?

LoanPao is your trusted partner for flexible financing in 2025:

Expert Support

Dedicated advisors guide you through the process.

Trusted Lenders

Partnered with top banks and NBFCs.

Digital Access

Manage your credit line online with ease.

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Frequently Asked Questions

A business line of credit is a flexible loan allowing businesses to draw funds up to a set limit as needed, paying interest only on the amount used.

Businesses with 1+ years of operations, ₹5 lakh turnover, a CIBIL score of 650+, and valid registrations qualify.

Rates start at 9% p.a., depending on the lender, business profile, and credit limit.

Once approved, funds can be accessed instantly via LoanPao’s digital platform.

KYC, business registration, financial statements, ITRs for 1 year, and bank statements are required.