Small business start-up loans are issued by the nationalized banks for a period of 7 years minimum and maximum period of 20 years. The period for which the loan is issued depends on the nature of business and the use of the loan.  The loans are authorized by the government therefore it helps in the development of many competitive small scale industries.

Small business start-up loans require collateral security form the borrower. The value of the collateral security depends upon the amount of loan being borrowed. To borrow the loan one must submit a blueprint of the business strategy and techniques to the bank for the approval. A team of expert managers reviews the project and decide the amount that could be disbursed.

Small business is often carried out at home and they are called as micro business, the bank also encourages this type of entrepreneurship and disburse loan with relatively lesser rate of interest.  The repayment is made easier for the small business loan as the borrower can opt to pay the interest in the monthly or yearly basis. During the loan remittance period the borrower needs to submit the balance sheet of the company to bank for its verification.