Small and medium-scale businesses contribute to the majority of the Indian economy. They exist in all sectors and all the regions of India. Today, these businesses are run by young entrepreneurs with diversified cultures and immense talent. But along with their innovative ideas and hard-working capabilities, they require capital to boost their businesses and take them ahead.
Strong and supportive financing is definitely the key to constant growth. To cater to this requirement, small businesses can opt for aBusiness Loan.
What is a business loan?
A Business Loan is a financing option wherein the borrower gets the benefit of instant capital to meet their requirements. A business loan is unsecured, so that the borrower may apply for this product without any collateral or security. The product can be tailor-made to suit their business’s needs. The borrowers can avail of easy EMIs over a long period. A business loan EMI calculator can help to calculate the monthly EMIs. Some lenders offer loans with interest rates starting at only 19%, which is competitive compared with other banks and non-banking financial institutions.
Key benefits of a business loan
- No collateral or security
- Customized as per the borrower’s requirement for all categories of businesses and professions
- Safe, regulated, and legally responsible
- Competitive Business Loan Interest Rates interest rates and high loan eligibility for customers
- Organized and easy to apply
- Capital gets channelized in the right manner
- Flexible EMI options
- Guidance from the bank’s team at all levels during the loan tenure
Some lenders also offer an overdraft facility – pay the interest for the capital used from the sanctioned amount.
Not only for small-scale industrial setups, but self-employed professionals can also apply for pre-qualified loans of up to 25 lacs.
How to apply for a business loan
Criteria:
- The borrower should be in the age group of 25-65 years
- Business should show a profit for three consecutive years and an overall upward trend
- Financial statements should be audited by a certified Chartered Accountant
Documents required:
- Photo ID proof
- Business existence proof
- Income proof including financial statements of the business
- Bank statements
- Other KYC documents as per requirement
Interest Rates and Processing Fees
Before deciding on the financial institution, check the Business Loan Interest Rates and processing fees. The lender should not have any hidden charges that surface at a later stage. They should be transparent with the schedule for all the fees and charges on the loan documents, be it processing fees, foreclosure charges, or delayed repayment.
For self-employed non-professionals, the ROI is 16.5% onwards, and the processing fees are 2% onwards.
For self-employed doctors and professionals, the ROI is 13.5% onwards, and the processing fees are 1.5% onwards.
The interest rate is calculated for each application based on the business’s financial strength and CIBIL score.
Loan repayment options
Not only the interest rates, but you can also customize your loan repayment schedule. Depending on the tenure selected, the monthly installments you decide to make, and based on other checks performed at the time of sanction, you can fix the EMI options.
You can avail of 2 repayment options:
- Fixed EMI: Pay a fixed amount for each frequency throughout the tenure. This is good if you have regular repayment capacity based on the income.
- Customized EMI: Uniquely designed for professionals with irregular income during the loan tenure, where you can structure the EMI payments as per your ease of repayment.
Explore more details on our website. We are happy to help with our chatbot on the website (for instant FAQ query resolution) and on-call for the resolution of detailed queries. For complete guidance, we can schedule a visit by our dedicated representative.
With just one click here, you can go ahead and make your financing simple!
One right decision can pave the way to great successes ahead!
