Loan is actually been understood as something lent for a sum of money to be returned normally with certain percentage of interest. It is an act of lending or state of being lent. A loan may be acquired in order to start a new business venture.For a business loan the bank advances loans by accepting certain securities like documents goods so as to take up a new venture and gain or maximize his profits so as to repay the banker his actual amount with the said amount or percentage of interest. A business loan is sanctioned in order to improvise the standards of one's business level by helping him In terms of capital, purchasing quality goods, employ human resources. These loans help the business grow in terms of maximization of profit and create corporate image worldwide and again popularity. sometimes business loan may be sanctioned to develop the internal organization like purchasing efficient machinaries to complete the undertaken projects, to meet the marketing needs, to conduct the research & development in order to improve the competitive levels against its competitors in the market. Any business loan is sanctioned or advanced to uplift the business activity and organization in terms of profits and popularity.