Small businesses sometimes need loans to meet their daily operations needs until their earning assets are sufficient to cover their working capital needs. A business loan is a loan specifically intended for business purposes. As with all loans, it involves the creation of a debt, which will be repaid with added interest.A business loan is debt that the company is obligated to repay according to the loan’s terms and conditions.
Small-Business Lenders- You can get small-business loans from several sources, including banks, credit unions and online lenders.Our business loans come with a host of benefits and are tailormade to meet your unique business needs. We offer among the best business loans in India, with complete transparency and competitive interest rates. Also, our business loans do not require any security.
– Why Apply for a Business Loan?
When you apply for a business loan, it’s because your business has a financial need, either planned orunexpected. May it be for additional working capital, buy out business partners or for the business expansion, a small business loan can help.
– Get Working Capital
Every business, no matter how big or small, experiences periods where working capital is tight. Thereare various types of business loans that can help shorten these stretches without interrupting operations,where funds can be easily availed on a installment paybacks.
– Keep Your Equity
Securing a business loan can help you to maintain equity and control of your company. In contrast, if you were to secure funding from investors, the investors will have authority and might take control of your company, and you may need to seek their permission to make business decisions.
In case of you availing funds from the bank, you will seek no permission of utilizing funds the way you want. This inturn allows company to keep all the profits within.
– Create Long-Term Growth
To create long-term growth, the business owner has to invest in the company continually. A small business loan can enable you to plan for the business future without taking stress for your day-to-day financial needs.
Trying to capitalize on a new market? a small business loan can secure the financial need of a business location you need to widen your reach.
– Improve your cibil score
Availing a business loan and paying back the installments on time is a best way to improve your cibil score. A healthy Cibil report play a very important role for the financial growth of company and the individual.
Business Loan Fees & Interest Rates
|Customized Interest Rates||1.5 to 2% per month|
|Loan Tenure||up to 60 months|
|Eligibility Criteria||> ₹ 90,000 turn over for 3 Months|
|Loan Amount||₹ 50,000 – ₹ 2 crore|
Features of Business Loan
Here’s how to get a business loan in five steps:
- Pinpoint why you need the money. Ask yourself how this loan will help your business.
- Find the right loan. Choose a type of business loan based on your needs.
- Find the best lender for you.
- See if you have what it takes to qualify.
- Get your documents ready and apply.
- Limit is set in separate Current account which drops monthly till end of the tenure. Pay the interest only on the amount utilized.
- To expand the business
- To expand business location
- To start a whole new business
- To build credit for future requirements
- To purchase equipment for business
- To purchase more inventories
- To bring in fresh talents to the business
The following people are eligible to apply for a Business Loan:
- Self employed individuals, Proprietors, Private Ltd. Co. and Partnership Firms involved in the business of Manufacturing, Trading or Services.
- The business should have a minimum turnover of Rs. 40 lakhs Individuals who have been in the current business for a minimum of 3 years, with 5 years total business experience.
- Those whose business has been profit making for the previous 2 years The business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum
- The applicant should be at least 21 years at the time of applying for the loan, and should be no older than 65 years at the time of loan maturity
- PAN Card – For Company/Firm/Individual
- A copy of any of the following documents as identity proof:
- Aadhaar Card
- Voter's ID
- PAN Card
- Driving License
- A copy of any of the following documents as address proof:
- Aadhaar Card
- Voter's ID Card
- Driving License
- Bank statement of the previous 6 months
- Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
- Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
- Other Mandatory Documents [Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)]