Flexible Credit Line vs Traditional Business Loan: Which Is Right for You?
June 13, 2025
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Small and medium enterprises (SMEs) are the backbone of India’s economy, contributing significantly to jobs, innovation, and growth. As of 2025, SMEs account for nearly 30% of India’s GDP and employ over 110 million people. However, many struggle to access the funds they need to grow. Business loans for SMEs have emerged as a vital tool, providing the financial support these businesses need to thrive. From expanding operations to adopting new technology, small business funding through NBFC business loans is fueling India’s economic progress, empowering entrepreneurs to turn their dreams into reality.
SMEs face unique challenges that require flexible, accessible financing. Unlike large corporations, small businesses often lack the collateral or credit history to secure traditional loans. Tailored business loans for SMEs address these gaps, offering solutions that fit their specific needs. Here’s why these loans are essential:
By addressing these needs, business loans empower SMEs to contribute to India’s economic growth while achieving their own goals.
When it comes to small business funding, both NBFCs and banks offer loans, but their approaches differ. Here’s a comparison to help SMEs choose the right option:
| Criteria | NBFCs | Banks |
|---|---|---|
| Approval Speed | Faster approvals, often within days, due to streamlined processes. | Slower approvals, typically taking weeks, due to strict regulations. |
| Eligibility Criteria | More flexible, ideal for SMEs with limited credit history. | Stricter criteria, often requiring strong credit and collateral. |
| Loan Customization | Highly tailored NBFC business loans to suit SME needs. | Standardized loans with less flexibility for customization. |
| Interest Rates | Slightly higher rates but competitive for SMEs with weaker profiles. | Lower rates but often inaccessible for new or small SMEs. |
| Digital Access | Digital-first processes for easy applications and tracking. | Traditional processes with more paperwork. |
For many SMEs, NBFCs like Everlight Holdings are a better fit, offering quicker, more flexible solutions tailored to their unique challenges.
NBFC business loans have become a game-changer for SMEs, providing the financial support they need to grow and succeed. Here are the key advantages:
These benefits make NBFCs a preferred choice for SMEs looking to fuel their growth without the constraints of traditional banking.
Misconceptions about business loans for SMEs often prevent small businesses from seeking the funding they need. Let’s clear up some common myths:
Understanding the truth behind these myths can help SMEs confidently seek the funding they need to grow.
At Everlight Holdings Pvt Ltd, we’re committed to supporting SMEs with tailored financial solutions. As a trusted NBFC with digital financial solutions, we offer business loans for SMEs that are flexible, fast, and designed to meet your unique needs. Our team of 25+ professionals in Kolkata works closely with clients, providing personalized support to help businesses grow. Whether you need small business funding for expansion, working capital, or technology upgrades, we’re here to help. Contact us at everlightnbfc@gmail.com or +91 99714 16789 to explore how we can fuel your growth.
Ready to take your SME to the next level? Reach out to Everlight Holdings today for tailored business loans!