What is a business loan from Oxyzo and what can it be used for?
A business loan from Oxyzo is a term loan designed for SMEs looking to fund long-term growth and expansion activities. It can be used for setting up new manufacturing units, renovating existing plants and machinery, purchasing fixed assets, expanding to new locations, or meeting any capital expenditure need. Unlike working capital loans, business loans are disbursed as a lump sum and repaid through fixed EMIs over a defined tenure -- with rates starting from 12% per annum.
Does Oxyzo provide business loans without collateral?
Yes, Oxyzo offers collateral-free (unsecured) business loans to eligible SMEs -- no land, property, or other assets need to be pledged. Unsecured loans are available up to Rs 5 crores. For businesses requiring higher loan amounts or looking to leverage their assets for better rates, Oxyzo also offers secured business loans.
What is the eligibility criteria for a business loan at Oxyzo?
A business must have a minimum annual turnover of Rs 3 crores and at least 3 years of operational history. Eligible entity types include Public Limited, Private Limited, Sole Proprietorship, and Partnership firms. A CIBIL score above 700 is generally considered favorable, though Oxyzo evaluates each application holistically based on business health and repayment capacity.
What documents are needed to apply for a business loan?
Documents required include: KYC (PAN Card and Aadhaar), GSTIN, last 6 months of bank statements, GSTR details for the current financial year, and audited financial statements (Balance Sheet and P&L) for the previous 3 financial years. The entire application is submitted online -- no physical branch visit is needed.
How long does it take for a business loan to be approved and disbursed?
Oxyzo's fully digital process enables loan approvals within 48 hours of submitting complete documentation. Once sanctioned, funds are typically disbursed within 24-48 hours. This is significantly faster than traditional bank loans which may take several weeks.
What happens if I prepay or foreclose my business loan early?
Prepayment is permitted on Oxyzo's business loans. Foreclosure charges may apply depending on the loan agreement terms -- these differ from purchase finance, which carries zero foreclosure charges. Early repayment positively impacts your credit score and improves eligibility for future credit.
What is the consequence of defaulting on a business loan EMI?
Defaulting on EMI payments significantly damages your credit score, making it difficult to secure future loans from any lender. Oxyzo charges a penal interest of 2% per month (plus applicable taxes) on overdue amounts. Persistent default may lead to the loan being classified as an NPA, legal recovery proceedings, and potential seizure of collateral in the case of secured loans.
Can I get a business loan from Oxyzo if I already have an existing loan from another lender?
Yes, having an existing loan from another lender does not automatically disqualify you from obtaining a business loan from Oxyzo. Oxyzo evaluates your overall debt-to-income ratio, existing repayment track record, and business cash flows as part of the credit assessment. If your existing obligations are being serviced on time and your business demonstrates sufficient cash flow to support an additional EMI, Oxyzo may sanction an additional credit facility. Timely repayment of existing loans is, in fact, a positive signal during credit evaluation.
What credit score is needed to get a business loan from Oxyzo?
While Oxyzo does not publicly mandate a specific minimum credit score, a CIBIL score of 700 or above is generally considered a safe threshold to qualify for a business loan. A higher score (750+) improves chances of approval and may result in more favorable interest rate and tenure terms. However, Oxyzo takes a holistic view of the borrower's financial profile -- a strong GST return history, healthy bank statement, and stable business turnover can partly offset a moderate credit score during underwriting.
How is the business loan tenure decided and what is the maximum repayment period?
The repayment tenure for a business loan at Oxyzo is customized based on the loan amount, business cash flows, and the purpose of the loan. Oxyzo offers flexible EMI options, with tenures tailored to ensure that monthly repayments are comfortably within the borrower's cash flow capacity. While the exact maximum tenure is assessed during underwriting, business loans for expansion and capex typically carry tenures ranging from 12 to 36 months. Longer tenures reduce EMI burden but increase total interest outgo.
Can startups or businesses less than 3 years old get a business loan from Oxyzo?
Oxyzo's standard eligibility criteria require a minimum business vintage of 3 years. This means newly incorporated startups or businesses under 3 years old do not qualify under the standard product terms. This threshold exists because lenders typically need at least 2-3 years of audited financial statements and GST history to assess credit risk accurately. Startups under 3 years should explore government-backed schemes such as MSME loans under CGTMSE, Startup India-linked credit facilities, or incubator-backed credit programs as alternative financing options.
Is Oxyzo's business loan better than a bank business loan?
Oxyzo and traditional bank business loans serve different SME needs and have different strengths. Oxyzo offers significantly faster processing (approval in 48 hours vs. weeks at banks), 100% digital documentation, and more flexible credit assessment that considers GST data and bank statements alongside traditional financials. Banks may offer lower interest rates for highly creditworthy borrowers but typically require more documentation, physical branch visits, and longer approval timelines. For SMEs that need speed, minimal paperwork, and flexible eligibility, Oxyzo's business loan is often a more practical choice.
What is the processing fee for a business loan from Oxyzo, and are there any hidden charges?
The processing fee for a business loan at Oxyzo starts from 1% per annum of the sanctioned loan amount. This is a one-time charge levied at the time of loan disbursement. Oxyzo follows a transparent, no-hidden-charges policy -- there are no application fees, prepayment commitment fees, or undisclosed administrative charges. Additionally, Oxyzo explicitly states that no processing fee is charged before the sanction of the loan; any individual claiming otherwise should be reported to getsupport@oxyzo.in.
