News Karnataka
Saturday, October 23 2021


Why Bengaluru is a Startup Hub

Bengaluru, as it is now called from the old Bangalore, has earned many epithets – the Garden City of India and the Indian Silicon Valley, to name a few. But the latest in the pantheon is the Startup Capital of India. Little known, this capital city of the state of Karnataka in south India has also emerged as the education hub of the country. All these have drawn professionals, entrepreneurs, and students to the city, which has transformed the city into a cosmopolitan cauldron with business opportunities galore. With the rapid rise of entrepreneurship, the avenues for a business loan in Bangalore is wide open for the enterprising.

What makes Bangalore a destination for business?
The salubrious pleasant climate, ease of doing business and the enterprise of qualified professionals who throng to the city have transformed it into the biggest software exporters and the largest out-sourcing destination in the country. No wonder it is also the vibrant startup hub making India the third-largest country in terms of startup numbers. Economic stability and an encouraging eco-system facilitate extensive business and investment opportunities in the city. One of the fastest-growing cities in the country, Bangalore is home to highly profitable businesses that specialize in R&D, Software Production and Electronics.

Reasons for startups thriving in Bangalore:
Riding on several factors that have made Bangalore conducive to the business fraternity, it is the city which first put India on the global map due to its thriving software companies. Let us check the driving forces:

  • Talent pool: The transformation of the city as the startup hub is a combination of the large, talented global engineer community, access to early-stage capital and discerning customer base working in tandem.
  • The work culture: The city emerged with a unique culture that nurtures mentorship and networking that draws entrepreneurs with startup ideas to pursue their dreams.
  • Launch-pad for startups: Bangalore is home to some of the largest software companies in the world. It acts as the right base for the birth of startups. The right environment is created by the Karnataka Information and Communication Technology (ICT) Group 2020 with a corpus of Rs.1KC for infrastructure development apart from the Rs.100C set aside for incubation of IT Firms and startups.
  • Investor and entrepreneur rich: Bangalore has a high concentration of entrepreneurs as well as investors. Many software firms find it profitable to relocate here for the opportunities for growth.
  • Abundance of qualified professionals: Unlike any other city in India, Bangalore offers the services of the best brains needed for startups that thrive on quality. Talent is expensive, and so is the source of funds. The city is home to about 70% of Venture Capital firms.
  • The nursery of cutting-edge technology: The reputation of Bangalore is further cemented as a startup hub by the dozens of new enterprises churning out products in healthcare, education, retail, and information technology. These products are the finest examples of the use of cutting-edge technology.
  • The startup success story: World Startup Report has credited Bangalore with 41% of all new ventures launched in India. It emphasizes the predominance of Bangalore as the startup hub of India in no uncertain terms.

Business loan in Bangalore:
It is quite evident that Bangalore is a commercially vibrant city that offers a rich breeding ground for business opportunities. It is true either way for the borrowers, and the lenders as the relationship are symbiotic. The biggest force driving this transformation has been the software industry which has given rise to related enterprises like malls, recreational facilities, food options, to name a few. Thus, a business loan in Bangalore is a lucrative option for the lenders, right from Banks, NBFC. Fintech companies, Venture Capitalists and Angel Investors.

Features and benefits of Business Loan in Bangalore:
Every lender has its set norms for startup loans in Bangalore. Yet the ease, innovative, tailored products and customer friendly approach of Fintechs make them eminently attractive as lenders. Let us check out the features and benefits accrued from such a Fintech business loan.

  • offers an entirely digitalized platform. 
  • Use online tools to check for business loan eligibility. 
  • Swift disbursal of loans in a maximum of three days. 
  • Loan amounting from Rs.50K to Rs.1C on competitive terms.
  • Flexible repayment tenure from 1 month to 36 months. 
  • Transparent transactions and no hidden charges.
  • Low processing charge and free foreclosure facility.
  • Unsecured collateral-free loans. 
  • High credit score and the provision of collateral are rewarded with a lower interest rate.
  • Seamless documentation process.

Eligibility criteria for a business loan in Bangalore:
Seeking loans from a Fintech has many pros as compared to traditional Banks. For one, Fintechs are precise and time-bound while banks indulge in longer elaborate processes. Let us check out what Fintech looks for in the borrower.

Product Customer Type Criteria
Term Loan  Manufacturer 3 years of operations
Trader Annual turnover Rs.1C
Online Seller Finance  E-commerce 6 months partnership
Quarterly sales Rs.75K
B2C 12 months of operation
Quarterly sales Rs.75K
Merchant Cash Advance Merchant  12 months of operation
Retail Store Annual turnover Rs.20L
Restaurant Card acceptance 6 months
Supply Chain finance Manufacturer 2 Years operations
  3 months customer vintage
Enterprises Annual turnover Rs.1C

The ownership pattern of enterprises needs to be any of the following for being eligible for a business loan in Bangalore:

  • Proprietor 
  • Partnership 
  • Own Company (OC) 
  • Private Limited Company (PLC) 
  • Limited Liability Company (LLC)

Documents required for Business Loan in Bangalore:
As understood, Fintech companies seek only bare essential documents as they also rely on data analysis for evaluating loan proposals. Accordingly, the summary of documents:

  • Valid KYC documents of the Promoter and the Business including PAN card 
  • Aadhaar Card of the Promoter 
  • Business-related documents including Registrations, Licenses, Permits, Memorandum and Articles of Association. 
  • Financial reports and statements specified by the lender.

Bottom Line:
As a city, Bengaluru has a lot going for it. Rightly considered to be the startup hub of the country due to its many acquired characteristics, it lives up to its status in more ways than one. You also stand the best chance for a startup loan in Bangalore because of the eco-system that feeds enterprise in the city. Several measures like a renewal of licenses every ten years, online registration of startups, vibrant IT clusters and skilled labor pool makes Bengaluru the Mecca of startups in India.


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