I am 41 years married with a son and reside in Bengaluru. I started a hardware distribution business in 2013 with a capital of INR 20 Lakhs and even offer my products on a popular ecommerce marketplace. I put my own money in this business.My business has a turnover of INR 1 cr. Now I require a business loan of INR 2 Crores to fund my working capital needs. Should I avail this loan from a bank or are there better alternatives? Please advise
To raise working capital in India, you can approach a bank. Banks generally ask for Audited financials of last 3 years, Bank statements of previous 6 months, VAT / sales tax returns, Identity proof and address proof documents. If you are not comfortable availing a business loan from the bank, you can avail this loan from an NBFC. 1. NBFC's have quick registration and you don't need to stand in long queues like banks. Banks are very strict and if you don't meet the banks eligibility criteria, business loan is rejected. NBFC's are less stringent and require minimal documentation. 2. NBFC's offer you the facility to scan and upload documents. On successful submission of documents, loan is processed fast and disbursal could even be within a week.NBFC's charge a competitive interest rate based on business turnover. 3. Banks reject business loan if you have poor credit history. There are NBFCswhich lend even on poor credit history, but could charge higher interest to protect against a default. To get all these details over the phone call leave a miss call on helpline number mentioned on the top of this article.