Capital is an essential requirement for any business ranging from small to large, each business faces a financial crisis at a certain stage of business development. In a few cases, owners turn their savings into investment while on other hand most enterprises are left with a single option of business loans.
To set up a new business or expand an existing business both require capital investment. The need for funds can be varied on a case-to-case basis.
In most recent years, the Government initiated multiple steps to ease loans processing e.g. online application, minimum documentation, a loan without security..etc. Business loans in India are offered by several banks & financial institutions to meet day-to-day operational requirements.
As a business owner, you must point out the capital requirement needed for business expansion.
Determine for how long it's required – short term or long term, this will help the lender to study the case.
Identify the reason behind looking for a loan whether you want to expand the business to new heights, can avail a business loan or purchase equipment/raw materials & manage day-to-day operational expenses can opt for a working capital loan wisely.
Also Read:- How to Get Business Loan in Bank
These loans are great in terms of meeting working capital requirements as well as expanding business. In addition, Business loan benefits are wide in range as listed below:-
Affordable Interest Rates: - Business loan interest rate begins from 14.00% p.a & this is one of the most affordable rates as compared to other loans, because of the high competition among lenders gives you more competitive rates and flexibility of negotiation.
Loan up to 75 lakh: - You can avail of business loans ranging from Rs.50,000 to Rs.75 lakh, select a short-term or long-term loan for all your financial needs.
Collateral-Free Loan: - No more complexity over mandatory pledging of collateral/security, These loans are unsecured loans which means you don’t need to pledge security.
Flexible Repayment: - As an Applicant, you can opt for flexible repayment ranges from 12 – 36 months choose as per your needs. This will ultimately reduce your EMI burden & give the flexibility to pay pocket-friendly EMIs. If you are a self-employed professional tenure goes up to 48 months.
Less Paperwork: - Make your loan process, even more, easier, less documentation makes the entire procedure smoother. There won’t be any heavy paperwork involved.
Tax Benefits: - Apart from enhancing your business, you can additionally save money through tax benefits by claiming a deduction on the interest rate that you pay on borrowed loans amount. Therefore, it aids to lower the total tax burden.
All bank & NBFCs require their applicant to meet specific criteria, bank to bank certain eligibility might be differed but some of the common requirements are given in the following: -
Also Read:- Business Loan Schemes by Government
If you are planning to get business loan in India, an applicant needs to arrange certain documents in handy before loan application as listed below: -
Any one of the followings: -
Any one of the followings: -
|Other Mandatory Documents|
Hence, knowing the facts about business & their benefits in advance are best. Avoiding this fact might result in obligations, Apply through Financeseva for best deals.