Business loan is kind of personal loan people take for business purpose. It is also an unsecured loan. Individual or company if want to wide their business but running out of money can approach to Banks or NBFC’s for business loan. This is kind of debt that you have to repay the bank on particular tenure. There are so many banks out there who give business loan up to 30lakhhs.
The interest rate basically depends on your companies’ yearly turnover, your CIBIL score and number of year your business is running of, your capability of repaying the loan amount you have applied for. It doesn’t take so much time to approve a business loan once you met all the eligibility criteria’s. The loan interest rate will be low if your amount of loan is big.
SME Loan (Small Medium Enterprise) is also kind of business loan. You can avail SME Loan in India easily online. SME Loan Rate of Interest are very low. Availing SME Loan online is very easy and through a SME Loan for new business you can avail loan up to Rs. 2cr. If you need a hassle free digital experience without worrying and want minimal documentation SME Loan Apply Online is the best way to do it. You can opt for both SME Unsecured Loan and SME unsecured Loan whichever is easy for you. SME Loan Interest Rates are low from other business loan and it is specially designed for Small and Medium Business enterprises. If you are a resident of India you can easily avail SME Loan in India.
There are two types of business loans.
Secured Business Loan and Unsecured Business Loan.
Secured Business LoanIn this business loan you have to mortgage any of your valuable assets to the bank so if you can’t able to repay your business loan on time bank will take your asset.
Unsecured Business Loan
Unsecured business loan is one of the most popular financial products available in the market. In this business loan you don’t have to mortgage any kind of your property or valuable asset. Bank gives you loan with minimum documentation, based on your portfolio.
- Age limit- Minimum age limit for the business person will be 21 years and Maximum age limit is 65 years.
- Applicant should have minimum 5 years of experience in the business.
- Applicant must have minimum 3 years of experience in the current business.
- Business turnover should be a minimum of Rs. 40 lakhs.
- The ITR report should be of a minimum of Rs. 1.5 lakhs per annum.
- Last 2 year must experience profit to the business.
- Following entities will be eligible for a business loan- Private Limited Companies, Partnerships, Limited liability partnership, closely held Limited Companies.
The applicants are practicing professionals with proper qualification proof and under the categorization of CA, Doctor, architect etc.
- ID proof of the applicant- AADHAR card, PAN card, Voter
- Residence proof- Utility Bills like Electricity bill, Gas
- PAN card of the company.
- Bank Statement for the last 6 months.
- An approved copy of Partnership Deed.
- Verified copy of Memorandum and Articles of Association.
- Business continuation proof- Sales Tax Certificate, Trade
- Copy of ITR file for last three years.
- Balance Sheet, Computation of Income, Profit and Loss
statement for the last 2 financial years.
- Age limit- Minimum age limit for the business person will
be 21 years and Maximum age limit is 65 years.
The applicants are practicing professionals with proper
qualification proof and under the categorization of CA, architect
Improve your credit scorePeople
often accuse that they are not getting business loan but they
have matched all the eligibility. What they don’t check is their
CIBIL Score. If their CIBIL is lower than 650 they can’t get the
business loan. So you should have to repay your EMI’s on time and
your CIBIL will be high. Though it is a time taking process.
Don’t apply at so many places
in same time When you apply for a business loan at same in so
many places your loan approval can be rejected because each time
bank refuses to give you loan that stays on your CIBIL report. So
don’t do that. When a financial institution sees so many
rejections they also rejected it for caution.
Choose your bankYou have to
choose your bank or NBFC’s very carefully there are so many
Financial Institutions who gives Business loan but some of them
charges high interest rate for no reason so you have to be
careful before taking any step.
Existence of your businessBasically
bank gives unsecure business loans to those companies who are
running from last three years and still going on well but if you
are in a start up or your business is not going well on that case
bank won’t give you an unsecured business loan.
Apply for a Business loan
based on your capability.
Maintain your account
|Name of Financial Institutions
||Up to 2.00%
|Capital First Business Loan
||Up to 2.50%
||Up to 2.00%
*Interest rates change time to time.
There are so many benefits in business loan. First of all you don’t
have mortgage your property for this kind of loan and you can take loan
from 1lakh to 1crore as per your eligibility. Your CIBIL will be high.
The rate of interest in business loan is pocket friendly. The process is
hassle free and documentation are so minimum so what are you waiting for?
Take a business loan and flourish your business. The main thing if you
have any co applicant in your loan application it will be really helpful.
The time tenure of this loan is also very impressive it starts from 6months
and the maximum time is 60months.
The Indian government has started to give loans to the small and medium
sized business to enlarge their business, the interest rate for this loan
is really low and almost every bank offer Mudra Yojna Business loan.
Mudra Yojna Business loan gives so many offers so it is also an attractive
opportunities to those people who are starting new business.
The fund from this loan is transferred to the applicant’s account.
*Interest rate and Loan approval
are subjected to band discretion and approval.