Apply for a Business Loan in Hyderabad

Hyderabad has become one of India’s top startup hubs, with over 10,000 startups in 2024, and the number is steadily growing. The city’s modern infrastructure, affordable resources, and supportive government policies make it an ideal environment for startups to thrive.

Ranked 19th among the top startup cities of 2024, Hyderabad is gaining recognition for its innovation and investment opportunities. A few sectors like health tech, e-commerce, entertainment, edtech, and media are particularly vibrant, offering numerous opportunities for entrepreneurs to scale.

As Hyderabad’s startup scene continues to grow, so does the need for financial support. In this article, we'll explore quick, collateral-free, and non-dilutive loan options, their types, eligibility criteria, and how to apply for them to scale your business in the 'City of Pearls.'

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Types of Business Loans in Hyderabad 

Listed below are some types of business secured and unsecured loans available for startups and SMEs in Hyderabad.

1. Vendor Financing 

Vendor financing allows businesses to purchase goods or services on credit, paying over time instead of upfront. This option helps manage cash flow while securing necessary inventory or services. In Hyderabad, vendor financing offers a flexible alternative to traditional loans.

2. Working Capital Loans 

Working capital loans provide short-term funds to cover day-to-day expenses, such as payroll, supplier payments, or unforeseen costs. It is ideal for businesses in Hyderabad that need quick access to funds to keep operations running smoothly without long-term debt.

3. Term Loans 

Term loans offer fixed repayment schedules and interest rates. These loans are used for long-term investments, such as equipment purchases or business expansion. They are ideal for businesses in Hyderabad seeking substantial capital for growth over several years.

4. Revenue-Based Financing

Revenue-based financing (RBF) lets businesses receive funding in exchange for a percentage of future revenue. With flexible repayments tied to sales performance, RBF is a great option for businesses with fluctuating income, as it doesn’t require collateral.

5. Venture Debt

Venture debt is a loan for startups with venture capital backing, often used to extend funding between equity rounds. It helps finance growth without giving up more equity. For startups in Hyderabad, venture debt provides additional capital to scale without diluting ownership.

Also Read: Understanding the Different Types of Business Loans in India

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How to Apply for a Business Loan in Hyderabad?

Here’s how you can apply for a business loan online in Hyderabad with Recur Club.

1. Sign Up: Create your account and explore diverse financing options that are tailored to your business needs.

2. Submit Details: Provide your revenue information for quick approval, backed by our network of 125+ lenders.

3. Get Funded: Once approved, easily access the capital you need to drive your business forward and reach new milestones. Our capital partners include Credable, INCRED, and Tata Capital. 

As India’s leading debt marketplace, we have funded 700+ startups, including the human resource-based tech startup Keka HR in Hyderabad, helping the startup raise $1.6M. 

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Eligibility Criteria for Business Loan in Hyderabad

To qualify for a business loan in Hyderabad, startups typically need to meet the following criteria:

• Operational Duration: At least one year in business, ensuring stability and a proven track record.
• Annual Revenue: Minimum revenue of INR 5 Crores for startups and INR 40 Crores for established businesses, reflecting solid financial performance and growth potential.
• Cash Runway: A minimum of three months of liquidity (for startups) and at least six months (for established businesses), demonstrating the ability to cover operational expenses and sustain growth.
• Business Type: Loans may be industry-specific. Sectors like SaaS, tech services, and B2B marketplaces may have tailored eligibility criteria.
• Financial Documentation: Startups must provide necessary financial statements or link business accounts for loan assessment and approval.

Wondering how much funding you qualify for? Use our business loan calculator to get a quick, personalized estimate in just 60 seconds.

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FAQs

1. How is my startup or SME eligible to get a business loan from Recur Club?

Your startup or SME should have been operational for at least 12-24 months, with an annual turnover typically between ₹10 lakh and ₹1 crore. You'll also need to provide key financial documents such as balance sheets, profit and loss statements, GST returns, and bank statements. For more info, connect with us here. 

‍2. Which sectors can raise capital with Recur Club?

We fund various sectors like SaaS, Tech Services, B2B Marketplaces, D2C, Health Tech, E-commerce, EV, Manufacturing, and many more.

‍3. Can I get a business loan in Hyderabad without collateral?

Yes, many lenders like Recur Club offer unsecured business loans that do not require collateral. However, these loans typically have higher interest rates and stricter eligibility criteria.

‍4. What is the maximum funding amount that Recur Club provides? 

Recur Club can provide capital up to ₹100 Crores through its "Recur Scale" product, which is designed for the larger debt financing needs of startups and SMEs.

‍5. Why should I consider a business loan in Hyderabad?

Because it specializes in providing funding to businesses with predictable recurring revenue, even if they are not currently profitable. Many high-growth companies like Wellversed and Ustraa trust our platform for their financing needs, making it a reliable choice for startups seeking flexible, non-dilutive capital.

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Conclusion

Applying for a business loan online in Hyderabad is easy with quick and efficient platforms like Recur Club. With a variety of financing options available, entrepreneurs can easily find the right loan option to support expansion, manage operations, or invest in innovation.

We offer funding across various sectors, including SaaS, Tech Services, E-commerce, Health Tech, and Manufacturing. With over ₹1000 Cr+ in capital funded, we empower startups and SMEs to raise capital by saving both time and equity. 

In addition to financing, we offer capital advisory services to help you make informed decisions and scale your business. 

Schedule a call with our capital experts today!