A business loan is a sum of money provided by a bank or financial institution to a company or self-employed individual, intended specifically for commercial purposes such as expanding operations, managing cash flow, purchasing inventory, or financing business growth and development.

For example: A retailer might apply for a business loan to open a new store location or to buy inventory ahead of the busy season, agreeing to repay the borrowed amount with interest over a fixed period in regular instalments. The loan is structured to support enterprises in meeting their operational goals, with eligibility and loan terms tailored to the business’s financial health, credibility, and repayment capacity.