Business loan is the best way to raise your finances towards your various business needs.
Your projected financial performances with regards to your business would also be taken into consideration by the banker. In case you manage to clear the banker’s interview, the business loan process would be initiated by the banker.
One of the best ways to increase the finances for your business needs is none other than opting for a Business Loan. Today, there are various banks that provide you a business loan, at times, even without collateral, with the help of pre-approved offers. The money is then credited to your bank account post calculating the interest as well as the fixed tenure for repayment. You can then use this amount for various purposes such as for initiating a new business or for expansion of the business that already exists, etc. The bank will approve your loan amount depending on your business requirements.
To cater to the requirement of the self-employed professionals such as interior decorators, Company Secretary, Doctors, Architects, Chartered accountants, etc, banks offer professional loans at rewarding rates. However businesses involved in trading, processing units, manufacturing won’t be eligible for such a business loan. At times, such loans would be unsecured in nature.
There is a need of heavy investing initially for present day trading as well as pooling in continuous financial resources. Banks offer trade loans to businessmen/ traders / to aid them in setting up or expansion of their existing business.
Mentioned below is the step-by-step process to apply for a business loan in India:
Research about the various schemes/offers and then check for the particular bank as per your requirement
Log in to the banks website and then fill in the Business loan application form thoroughly that is available on the website
Mentioned below is the eligibility criteria for business loan in India:
The applicant must be minimum 21 years of age and maximum 65 years at the time when your business loan matures
A minimum turnover should be of Rs.40,000 for your business needs
Mentioned below are some of the documents that are required for processing your business loan in India:
Latest statement of income tax returns along with the balance sheet as well as the P&L account for the last two years
Mentioned below are some of the main features of Business loan in India:
Business loans can be done with minimal paperwork
Business loans can be availed easily
The repayment options for Business Loans are flexible
Business loans can be availed ranging from Rs. 50,000 up to Rs. 75 Lakh. Such business loans are sanctioned quickly without any hassles
Collateral is required in case you wish to opt for a secured business loan. This will help in reducing the risks of any defaults. Besides, your chances of obtaining a loan too will increase
You need to do your homework well before obtaining a business loan in India:
From your business loan application date to the receipt of the actual funding, the process may take around 7 to 21 days in case the application is complete and approved. This usually is possible for micro as well as small business loans. However, in case of fast track loans, the funding is usually possible within three working days
Yes, you may opt for an early settlement of your business loan, however, the bank would charge a pre-closure fee too
Business loan can be either paid via post-dated cheques or in EMIs. You also have an option of making the business loan payment via Electronic Clearing System (ECS ). Nonetheless, you may also instruct the bank to debit the EMI amount from your bank account.
EMI calculators help you in calculating your EMI accurately. All you need to do is enter in the details in the calculator with some desired information such as your business loan amount requirement, interest rate and the tenure of your business loan to wish to opt for.
After feeding in the required information into the calculator, the business loan calculator will offer you an estimate of the amount that you will be asked to pay every month as the repayment instalments for your business loan.
Mentioned below are the main reasons why you should opt for a business loan in India:
• Expansion of the business
• Expansion of your business location
• Commencing a new business from the scratch
• Buying any new equipment’s or inventories
• Building credit for any future needs
• For introducing new talents for the business
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Many questions may come in your mind before deciding on the Loan. ‘How much Loan I would need, how many years I shall invest for, what would be the EMI’s, etc. Loans Calculators are life-savers. They help you know your needs and assess the potential costs. Grey Font brings to you various Loans Calculators and interactive tools to help you calculate your needs. In order to get better results, ensure to enter a value in all the possible fields.
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