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Apply for Business Loan with Financeseva

  • 26-Feb-2022

Business Loan

business loan is a loan that is utilized by an individual who is self-employed and an organization. Basically, it is an unsecured loan where an applicant does not need to pledge for collateral to acquire a business loan. Prior business loans require a lot of documentation work and a load of maintaining the burden on documents. But nowadays, the process is very simple and easy and requires less paperwork. Also, it is the best way to save time. An applicant can access it anytime and anywhere with ease and comfort.  

Documents required for a Business loan -

  • 2 photographs
  • Aadhar card
  • Passport
  • PAN Card copy
  • Permanent address proof and if rented
  • ITR with computation of income (if file) for last 3 years
  • Sanction letter
  • Loan schedule
  • Bank statement of last 1 year (salary account)
  • Cheque for processing fee
  • Appointment letter
  • Salary slips of last 3 months

Also Read: - 5 Top Factors Determine Your Working Capital Loan Approval

Business loan in India

For business, the requirement for utilization of capital is a must for justifiable development. To start a new business, reinforce an existing business for another elaboration. Business loans can be used to meet the needs of their requirements for working capital.  

There are several types of business loan in India:  

• Working capital loan  

A working capital loan is a loan that helps an applicant in running daily operations to meet the needs of their requirements which includes the purchase of raw materials, managing business cash flow, buying equipment, paying salary, etc.  

• Startup loan  

A business financing startup loan is funding that helps with the cost of startup of a new business. Startup loan can go with regard to the things such as working capital:  The purchase of- supplies, furniture, inventory, machinery, equipment, etc.  

• Term loan  

A term loan is a loan that needs to be repaid in fixed payments in a particular period of time. It is categorized into short-term as well as long-term loans. The minimum repayment tenure is 12 months which ranges maximum up to 10 years and it is finalized by the lender. The amount for loans offered by the bank ranges from Rs 1 lakh to Rs 1 crore, it might be on your business requirements.  

• Loan against property  

A Loan against property is a secured loan. An applicant does not allow much difficulty to get a loan on the property. Generally, the rate of interest is low as compared to a personal loan. And tenure is available for a longer period generally up to 15 years.  

• Invoice financing  

Invoice financing is an aspect for business to acquire the amount due from an applicant. It allows a business to utilize its existing invoices as a security or collateral for financing.  

• Equipment finance  

Equipment financing is a form of small business loan. It is a financial tool that provides funds to an applicant for purchasing new equipment or enhancing existing machinery. Loan tenure, amount of loan and rate of interest may vary from bank to bank or financial institutions.  

• Overdraft  

It is a form of credit that is provided by the organization. An overdraft allows an applicant to deposit any amount which is more than the loan amount. It depends on the bank association and the customer. This loan can be grabbed against saving accounts, salary accounts, and term deposits. Banks offer you the opportunity to meet the needs of short-term fund requirements.  

• Merchant cash Advance  

A merchant cash advance (MCA) is a form of business financing that is intended to help businesses access the cash they require in an adjustable form. It works by merchant taking an amount of money from the lender and then pays it back through the card payment of the customer. Merchant cash service does not require any security or collateral.  

Business loan for women  

Given below are the government loan schemes for women:  

  • Udyogini scheme
  • Mahila Udyam Nidhi Yojana
  • Annapurna scheme
  • Stree Shakti Yojana
  • Bhartiya Mahilla Bank Business Loan
  • Cent Kalyani Scheme
  • Dena Shakti Scheme
  • Mudra Loan for Women
  • Orient Mahila Vikas Yojana

Therefore, knowing the facts Financeseva allows you to choose the best deals for business loans.

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