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Business expansion loan

Loans to expand your business, one step at a time.

A new outlet, a bigger space, more people or a new market. Share your business details once and our team will connect you with RBI-regulated lenders.

What it can cover

Where the money can go.

  • A new outlet or branch

    Reach customers in a new area.

  • Bigger premises

    Room for more stock, staff or machines.

  • Hiring and training

    Grow the team that grows the business.

  • Marketing and launch

    Tell people you’ve arrived.

Loan types that fit

Pick the right kind of loan.

Not sure which one you need? Tell us what the money is for and our team will help. Which types you can get depends on the lender and your business.

  1. Term loan

    A lump sum you repay in EMIs as the new business earns.

  2. Loan against property

    Pledge a residential or commercial property for larger amounts and longer tenures than an unsecured loan.

  3. Government-backed schemes

    Schemes like Mudra and CGTMSE help small businesses borrow, through participating lenders.

Before you borrow

Show lenders the plan.

For bigger amounts, a simple plan makes the conversation easier.

  • Cost, timeline and expected revenue on one page
  • Clean books, GST returns and bank statements
  • Borrow in stages if growth will take time

What lenders look at

  • Turnover and profit
  • Business bank statements
  • GST returns, if registered
  • Your and the business’s credit history
See who can apply

Eligibility

Who can apply and what you need.

Each lender sets its own criteria. Keep these handy; you won’t need to upload them on Firstfund.

Who can apply

  • Sole proprietors, partnership firms, LLPs and private limited companies
  • Self-employed professionals, such as doctors, CAs and architects
  • Owner aged 21 to 65 years at the end of the loan
  • Business running for at least 2 years (some lenders accept 1)
  • Annual turnover from about ₹10 lakh; each lender sets its own minimum
  • A credit history that meets each lender’s policy

Documents lenders usually ask for

  • PAN of the business and of the owners
  • Aadhaar of the owners (for KYC, with your consent)
  • Business proof: GST, Udyam, shop licence or incorporation certificate
  • Business bank statements for the last 6 to 12 months
  • ITR with computation of income for the last 2 years
  • Balance sheet, P&L and GST returns, for larger amounts

Good to know

Your rights as a business borrower.

  • A Key Fact Statement before you sign

    For MSME term loans, the lender must give you a Key Fact Statement with the APR, every fee and the repayment schedule before you sign. A fee that isn’t in it can’t be charged without your consent.

  • No prepayment fee on many floating-rate loans

    For floating-rate business loans to individuals and micro and small enterprises, sanctioned or renewed from 1 January 2026, banks and larger NBFCs can’t charge a prepayment fee. Small finance banks, regional rural banks, some co-operative banks and mid-sized NBFCs can’t charge one on such loans up to ₹50 lakh.

  • Never pay to get a loan

    Firstfund doesn’t charge you to apply. A real lender pays the loan into your business’s bank account, deducts any processing fee shown in the KFS, and never asks for money upfront.

Based on Reserve Bank of India directions on Key Facts Statements (2024), pre-payment charges (2025) and digital lending (2025). Your lender’s KFS and loan agreement have the final terms.

Questions

Expand your business: FAQs.

How much can I borrow to expand?

It depends on your turnover, profit, credit history and existing loans. Each lender decides its own limit.

Do I need a business plan?

For larger amounts, many lenders ask for a project report with the cost, timeline and expected revenue, along with your financial statements.

Can I use a Mudra loan to expand?

Yes, if you run a micro or small business in manufacturing, trading or services, including activities allied to farming. Mudra loans go up to ₹20 lakh in four tiers: Shishu up to ₹50,000, Kishore up to ₹5 lakh, Tarun up to ₹10 lakh, and Tarun Plus up to ₹20 lakh for those who have repaid a Tarun loan.

Does Firstfund charge me anything?

No. Sharing your details with Firstfund is free. Lenders may charge a processing fee, which they must show in the Key Fact Statement.

See all FAQs

Other uses

Funding for what your business needs next.

Your next step

Ready for your next step?

Share your details once. Our team will connect with you about the next steps.

Apply now

Free. Firstfund never asks for an upfront payment.