Your business requires working capital to run and function smoothly. Lack of funds may sabotage the ambitious growth plans of your Business.
Banks give you money to run your business, which you have to repay with interest, called a business loan.
Your business loan can be secured (you give a collateral) such as your Company inventory, land or machinery and avail your loan at a lower rate of interest.
Your business loan can be unsecured (you do not need to give a collateral).You are charged a higher rate of interest.
If you are a business owner you need money to finance your working capital needs. You can also take a loan to expand your business.
You get a business loan for sole proprietorship firm, partnership firm, private limited company or a public limited company.
You get a special collateral free facility if your business is a Micro or a Small Enterprise. This is under the Credit Guarantee Fund Trust.
Attractive lending schemes for women offered by banks. Women get loans at lower interest rates with no collateral.
You need to be at least 21 years of age and 65 years when your loan matures.
Your business needs to have a minimum turnover of INR 40 Lakhs.
You need to have a minimum experience of 3 years in the current business and at least 5 years of total business experience.
Your business should be making profits for at least 2 years.
You need to have a minimum annual income of at least INR 1.5 Lakhs for a loan of INR 15 Lakhs and at least INR 3 Lakhs for a loan above INR 15 Lakhs. You need to have a minimum Cibil score of at least 700.
• You require to submit owner's/business PAN card details.
• Your Residence and identity proof.
• Your 6 months bank statements.
• Your latest Income Tax Returns along with the computation of income, Balance sheet and Profit and Loss account for the last 2 years.
• Your proofs of the business such as trade licenses, sales tax certificates and so on.
The main aim of a commercial loan is to help traders, businessmen and professionals, start or expand their commercial activities. Such loans can be secured or unsecured. Loan amounts ranging from Rs. 500,000 to Rs. 10,000,000. The tenure of repayment can be up to 10 years.
Secured business loan: Secured business loans means that the entrepreneur keeps something as collateral against the loan amount taken. Collateral can be anything from raw material to finished products, land and building of the business to plant and machinery. If you have the collateral for the cash advance, you can have the money at relatively cheap rates and with much more flexible repayment options.
Unsecured Business Loan: Unsecured Business Loan, as the name explains is a type of loan that doesn't require collateral. It is typically at a higher rate of interest and is taken for a comparatively smaller tenure.
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Sole proprietorship businesses, partnerships and private limited companies are eligible to apply for business loans. These days even self employed but highly qualified people are provided with business loans.
Usually, lenders sanction business loans for 12 to 48 months.
Business loans can be sanctioned for a fixed term or may involve a revolving line of credit or they may be in the form of an overdraft facility.
Your personal details, such as how long you have been in business and your credit history, will be taken into account, along with other factors such as the income or projected income of your business, any assets, and more. You should check the eligibility requirements with each service provider that you consider, as they can vary from one service provider to another.
Depending on the company and loan that you opt for you could be risking certain assets, or even part of all of your business if you do not keep up with repayments on the loan. It is therefore important to discuss your requirements thoroughly and ensure that your business can comfortably afford the repayments on the loan before you make any commitment.
From the date of application to actual funding, if a loan application is thorough and complete, the process can take from 7-21 days for loans under Micro and Small Business loans. Fast Track loans are processed within three business days.
Bank reviews the borrower's credit report and credit score in considering loan requests. In some cases they extend loans even when credit scores are lower than average. Is your credit history stopping you from thinking about a business loan? Call us on 080 67974000 and understand the eligibility criteria!
Yes. Once you have completed 12 months of payments on the loan, you may apply for a top-up loan.
Yes. You may go for an early settlement of your loan. This would be subject to pre-closure charges, as applicable.
Businesses like sexually oriented businesses, gambling establishments, businesses with over 51% of revenues generated from liquor sales, businesses organized for religious purposes, residential builders and speculative real estate investments are not eligible to apply for loans. To know the various kinds of Business Loan available, call us on 080 67974000 and ask our experts!
Professional loans: Leading banks are catering to the need of self employed professionals like Doctors, Chartered accountants, Interior Decorators, Architects, Company Secretary Etc. by offering them professional loans at lucrative rates. Manufacturing/ trading/processing units are not eligible for such a loan. These loans are unsecured in nature. Trade Loans:Present day trading involves heavy initial investment and pooling in continuous financial resources. Banks are providing trade loans to traders / businessmen to help them set up or expand their business.
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