A Business loan refers to the money borrowed by a company or a businessman for a pre-specified term and a fixed interest rate. Business loans can be availed for funding business needs like working capital needs, investing in a new project, purchasing equipment or for the expansion of a business. One of the main benefits of business loan is that it does not require any collateral or security.
Want to know more on Business Loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Collateral Free Loans: These loans are unsecured loans offered without any collateral or security. However, before sanctioning the loan, the banks check your credit report and score, age and income of the past few years.
Fixed Interest Rate: The rates of interest on the business loan are fixed, which implies that the rates of interest remain constant across the tenure. The rate of interest on business loan is around 14-24% a year.
Flexible Repayment Tenure: Business loans come with flexible repayment tenure. This is a key feature of business loans that makes them an attractive funding option for businessmen.
Loan Amount: An individual can avail a maximum business loan of Rs 50 Lakhs provided he has a good credit score and a steady source of income. Banks check the financial credibility of the borrower before sanctioning the business loan.
Minimal Paperwork: You can also avail business loans online by visiting the website of the bank or through mobile banking apps of the bank. You can also avail business loans from online loan aggregators. Online business loans require minimum documentation and can be uploaded and submitted for verification.
Fast Processing: Once you submit the documents, banks scrutinize them and approve the business loan. The loan approval is followed by the disbursal process. Expect fast processing of the business loan.
See Also: Types Of Business Loans
Business loans can be availed by the self employed, limited and private liability company, manufacturers and services providers. The banks have certain eligibility criteria that must be fulfilled by the applicant. Loans are easily approved without wasting much time.
Listed below is the list of documents that must be submitted by the applicant in order to avail a business loan:
See Also: Business Loans For Women
These are some of the general documents that must be submitted to get a business loan approved. However, the bank in its capacity can ask for additional documents for verification purposes.
See Also: How To Get A Business Loan From A Bank?
You May Also Watch
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.