123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Features Of Business Loan In India

By Author: Aishwarya Mahurkar
Total Articles: 291

Business loan is an ideal way to ensure one’s venture has a favourable start, or successful progress. As an owner, one would need to take the ideal decisions to ensure that business runs smoothly and successfully, which would also include the financial decisions. When opting for this finance, one would need to consider all the factorial requirements, pros and cons and the return on investment in each option. But in order to know what the business loan in India has to offer the owner, one would need to consider its features:


Interest rate:


For every loan, the interest rate is one of the most crucial features of the loan. As a business owner, while opting for the loan one would need to consider the interest rates before the additional features of this financial aid. No doubt with plenty of financial assistance options available, one would have plenty of choice. But when considering the options of the personal loan, loan against property and the business loan in India, the ideal option is the business loan. Depending on the amount of the loan and the tenure of the loan, a business loan will come with an interest rate of 3% to 10%. In comparison to the personal loan, the interest rate one would enjoy would be anywhere between 16% to 18% rate of interest. Alternatively, the loan against property will offer you an interest rate between 11% to 14% p.a.


Cash outflow

Another aspect of the business loan in India one must know is the cash flow. Most financial institutes will offer a minimum cash outflow for this type of loan. This is due to the fact that this loan requires only the interest to be paid regularly only on the principal amount that has been used. Ideally, if a business is based on a termed duration, this loan is applicable, so as long as the payment deferment clauses are attached to it. This is applicable to both new projects or expansion of existing projects


Initial low processing fees

Every loan has a processing fee. This processing fee can range from 2 % to 4 % depending on the type of loan one would opt for. A personal loan would charge a minimum of 2% whereas the loan against property will charge between 1% to 2 % with additional fees for legal opinion. However, with the business loan, you will have low processing fees, excluding the fee for legal opinions and encumbrance certificate.

Collateral requirement:

One would need to submit collateral depending on the requirement of the loan type. Unsecured loan like the personal loan need not require the submission of collateral. However, these compensate the factor with a high interest rate. Alternatively, loans like loan against property and gold loan, one would need to submit collateral, as mentioned with a returning loan amount value ranging from 65 to 80% of the collateral.

Author Bio :

The author is a seasoned writer on finance topics and she articulates aspects that are important to people availing the SME loan in India facility. She writes about a variety of topics covering the home loan documents, rates & business loan in India that help to make the best decision.

Total Views: 84Word Count: 530See All articles From Author

Investing / Finance Articles

1. Case Study On Functional Testing Automation Of Order Processing Gateway
Author: Brenda Peter

2. Your One-stop Guide To Mutual Funds
Author: Shashank Pawar

3. Sr&ed Pre-claim Consultation — pros & Cons
Author: EVAMAX Group

4. How To Invest In Direct Mutual Funds Online?
Author: Shashank Pawar

5. Benefits Of Taking A Icici Credit Card From My Loan Care
Author: Bhavna Singhal

6. Why Is Cibil Score Check Important While Applying For A Loan
Author: Rishi

7. What Functions Do Investment Banking Companies Perform?
Author: Aniket Vichare

8. Mortgage Loans In Hyderabad
Author: Loansa Assir

9. Trailingcrypto “a Must Have Trading Tool For Cryptocurrency Trader”
Author: Laura

10. Best Crowdfunding Tips For Artists In India
Author: Rahul

11. Invest In Cryptocurrency
Author: David Antony

12. How Does Inflation Affect Your Financial Goals
Author: Shashank Pawar

13. What Are The Benefits Of An Ico?
Author: Oryxiann

14. Flexion Token Brings More Value To Its Investors
Author: infliv

15. When Flexion Token Will Be At Exchanges
Author: flexion

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: