How to get Business loans and eligibility criteria, Documention

 

It will be needed for a business an adequate amount of capital to fund startup expenses or pay for expansions. for it, companies take business loans for the financial assistance they need. It is a business loan, that a company is obligated to repay its loan according to the rule of business loan.

A business loan is a loan that a company incurs for expenses that it is unable to pay on its own. Some business owners use business loans to pay wages. Until his new company rises above the ground. When other companies are putting borrowed funds toward office supplies, inventory.

Never get loan free. To borrow money, interest is paid on the loan in the form of salvage payment done. It gives business loan companies a chance to succeed. When making a business loan allocation, the lender checks the complete information or complete history of the company. How much loan does the company have and what is the risk in the business? All the lenders investigate and sometimes a company not suitable for a loan. As such startup companies are never used for loans.


Types of Businesses Loan


1. Term Loan

It is a common type of business finance loan. It could be secured or unsecured. The available amount always discharges the credit leg of the business. It is ranging between 1 and 5 years or up to 15 - 20 years in business. 

 The term loan is taken for some purpose, it is taken for this general capital interest.


2. Pradhan Mantri Mudra Yojana

 Pradhan Mantri MUDRA Yojana (PMMY) is a Business loan only for MSME nonfarm sector. 

 State Bank of India, RRBS, Cooperative banks, MFIs and NBFCs, and Small finance banks are the banks giving this business loan. This loan is divided into three types of loan Shishu loan, Kishore loan, and Tarun loan. It depends upon the stage of funding need of the owner/enterprise.

For small business Shishu loan is. Best its covers loan up to Rs 50,000, if you need more then this you have to go with Kishore loan it's giving between Rs 50,000 to 5,00,000 and last one Tarun loan cover between 5,00,000 to 10,00,000. You can use this loan for Renovating offices, Machinery, Buying plant, a commercial vehicle like two-wheeler loan and car loan


3. Business Loan for Women

In the business, the loan has some special schemes for a woman. Woman entrepreneurs can get business loans. Even our Government also encourages a woman in Starting a small and medium-sized business. Women can get some special schemes or the advantage of the specialized loan amount, start-up loan, they can get a discount on internet rate, they have a chance to get a loan fast approval.


4. GOLD LOAN

You can take a business loan by giving your gold and jewelry from your home. If You need a business loan between Rs 20 lakhs you can easily borrow this amount in India by giving gold as a security.


5. Cash Credit Facility

The cash credit facility is known as an overdraft. It permits a business to borrow money from the bank efficiently. Because this is a cash credit facility a short term loan. It is ideal for meeting the needs of purchasing raw materials or providing credit to customers.


6. Working capital loan 

It is one type of small business loan .it has taken to overcome the shortage of cash to operate a business on a day-to-day basis. This cash flow produces a balance to keep this business going. These loans are helpful to meet the demand during peak season and to cope with cash shortages during the offseason. Most eligible applicants are service providers, manufacturers, wholesalers like a big businessman who have more workers


Feature and benefits

If you have a small business you will get a loan up to Rs. 30 lakh, funding for your small business within 24 hours. You can invest these funds into your upgrade the latest plan in machine maintain inventory or increase the working capital or infrastructure etc. This business loan can give you a boost in your business and you can bit your competitor and increase your profit.


Top Features of Business Loans

1. You can get large capital from a business loan with a low-interest rate, short term loan, long term loan, intermediate-term loan for your business.

2. You can get Up to Rs. 30 lakh Lone from a business loan that you can use for your infrastructure, buying a new machine, increase your working capital, increase your inventory.

3. You can easily access your business loan statement online

4. It's a collateral-free Loan its means they will offer you Lone without any security or collateral. The bank will check your before credit score and you will get a loan for that

5. You can easily get that lone with minimum paperwork. You can apply for this loan from the bank website and upload your minimum documents online.

6. If you have a good credit score you can get up to 50 lakhs lone individual. This amount depends on your credit score.


You can this business loan into your:

1. Redesigning your infrastructure

2. You can hire a part-time employee

3. You can Purchase raw material for bulk

4. You can scale your business and take bigger projects.

5. Fill up your Stock on inventory before the season

6. Expand your business into another area or city

7. You can be Upgraded to the latest technology

8. Increase your business cash flow

9. You can Purchase, the latest machine


Documentation

These are the documents you need when you are applying for a business loan:

1. Fill in the applicant from online/offline with all the details.


2. Passport size photograph your and co-applicant


3. Your Business plan in Documents format and all your documents.


4. Your Identity proof:

Passport

PAN Card

Voter’s ID card

Driving License


5. Your age-proof:

PAN card

Voter’s ID card


6. Your Address proof:

Aadhaar card

Voter’s ID card

10th bord certified

Utility Bills (Telephone, Electricity)


7. Your Business Adress proof:

Ownership or rent agreement

Proof of business existence


 8. Other Documents

GST Challans

Trade License

Tax audit reports

Your Last 6 months bank statement

2 years’ of IT returns, profile and loss statement and 2 years of Balance Sheet audited by a chartered accountant.


Comparison

We have mentioned below all the financial institutions and their business loan interest rates, loan duration time, and loan amount offered by him.


Axis Bank 

 Interest- 15.5% 

 Loan amount(maximum)- onwards 50 lakh 

 Repayment duration - 12 month – 36 month


Bajaj Finserv

 Interest- 18% 

 Loan amount(maximum)- onwards 20 lakh 

 Repayment duration - 12 month – 48 month


Capital First prime

 Interest- 21% 

 Loan amount(maximum)- onwards 75 lakh 

 Repayment duration - 12 month – 48 month


Fullerton Finance

 Interest- 17% 

 Loan amount(maximum)- onwards 50 lakh 

 Repayment duration - 12 month – 48 month


HDFC Bank

 Interest- 13% 

 Loan amount(maximum)- onwards 75 lakh 

 Repayment duration - 6 month – 48 month


Hero FinCorp

 Interest- 18% 

 Loan amount(maximum)- onwards 25 lakh 

 Repayment duration - 6 month – 48 month


ICICI BANK

 Interest- 13% 

 Loan amount(maximum)- onwards 40 lakh 

 Repayment duration - 6 month – 48 month


RBL Bank

 Interest- 18% 

 Loan amount(maximum)- onwards 20 lakh 

 Repayment duration - 12 month – 36 month


IIFL Finance

 Interest- 18% 

 Loan amount(maximum)- onwards 50 lakh 

 Repayment duration - 12 month – 36 month


HDB Financial Services Ltd.

 Interest- 18% 

 Loan amount(maximum)- onwards 30 lakh 

 Repayment duration - 12 month – 60 month


Eligibility Criteria
Eligibility criteria for a business loan:

1. Application age should be between 25 Years to 65 Years

2. Last 2-3 years business financials Report

3. Your Business current level of activity

4. Your Company Past Credit History

5. 2 years of income tax returns, profile and loss statement and 2 years of Balance Sheet audited by Registered chartered accountant

6. Your business Minimum annual turnover Rs.10 Lakhs, If you are a service provider company then your turnover should be Rs.15 Lakhs and last one if you are in manufacturing Rs.18 Lakhs for trading.


FAQs

 1. How much available for a business loan?

You can get a business loan up to Rs.5 lakh to Rs.30 lakh. As you need for your business.


2. Business loan interest rate was fixed or floating?

Business Loans offered you a fixed interest rate for your business.


3. How can I get a business loan?

If you want to do business, and you have a business, then you will be able to easily do the business loan. If you want to make a loan, you can prepare all the squads, and go to the bank and make applying for the loan. And you can also apply from this website.


4. How to apply for a business loan? 

It is a simple process to apply for a business loan.

When you apply for a business loan, you have to fill up an online form.

To complete this process, you must submit all the related documents.

You will get money within 24 hours in the bank.


5. Who can get a business loan?

Any business owner can get a business loan


6. What types of businesses qualify for a business loan?

Businesses older than 2 years get a business loan and the business is rescheduled for more than Rupees. Rs.10 lakh and the business must file ITR more than 1.5 lakh in last year.


7. What are documents are needed for a business loan?

This document is required for a business loan:

PAN

Bank statement (previous 9 months)

ITR return report of last 2 years

House and business place address proof


8. How to calculate the interest of the credit line?

This is the formula for your interest on the line of credit = (Used Amount*Interest rate)/ 360* Funds used day's

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