A Term Loan is a type of loan provided by banks or financial institutions that is repaid in regular installments (EMIs) over a fixed period (term). It is typically used for funding capital expenditures, business expansion, or personal needs like buying a house, car, or equipment.
A Working Capital Loan is a short-term loan taken by businesses to finance their everyday operational needs, such as:
Purchasing inventory
Paying salaries or rent
Managing cash flow during seasonal slumps
Covering utility bills or overheads
It is not used for buying long-term assets like buildings or machinery.
The Start Up India Loan refers to funding support provided under the Startup India initiative, a flagship program launched by the Government of India in 2016 to promote innovation, entrepreneurship, and economic growth by helping startups access affordable credit, mentorship, and regulatory support. While “Start Up India Loan” isn’t a single specific loan product, it generally includes various government-backed loan schemes and credit facilities available to registered startups through the Startup India platform and schemes like Stand-Up India, MUDRA, and SIDBI’s Fund of Funds.
An Equipment Financing Loan is a type of business loan used specifically to purchase machinery, tools, vehicles, or other business equipment. The purchased equipment itself often serves as collateral, which makes these loans easier to secure and helps reduce risk for the lender. It is commonly used by businesses in manufacturing, agriculture, construction, healthcare, and logistics.
Invoice Financing (also called Invoice Discounting or Receivables Financing) is a type of short-term business loan where a company borrows money against its unpaid customer invoices. It helps businesses improve cash flow by getting immediate funds without waiting for customers to pay.
A Business Line of Credit is a revolving loan that allows businesses to borrow funds up to a pre-approved limit, use the funds as needed, repay, and borrow again—similar to how a credit card works, but typically with lower interest rates and higher limits. It is especially useful for managing short-term working capital, seasonal expenses, or unexpected business needs.
A Merchant Cash Advance (MCA) is a type of alternative business financing where a business receives a lump-sum advance of cash and repays it from future sales, typically daily or weekly through a percentage of credit/debit card transactions or overall sales. It’s not a traditional loan—it’s an advance based on projected future revenue. It is popular among retailers, restaurants, e-commerce stores, and other businesses with consistent sales.
A Microfinance Loan is a small, short-term loan provided to low-income individuals or groups, especially in rural or underserved areas, to help them start or expand small businesses, manage daily needs, or handle emergencies. These loans are offered by Microfinance Institutions (MFIs), Small Finance Banks, or Non-Banking Financial Companies (NBFCs)—often without collateral.
An MSME Loan (Micro, Small, and Medium Enterprises) or SME Loan (Small and Medium Enterprises) is a type of business loan offered to small businesses, startups, manufacturers, traders, and service providers to help them meet their working capital, expansion, or equipment needs. These loans are supported by government schemes and financial institutions to promote entrepreneurship, employment, and economic growth.