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Applying For A Business Loan Online In India
Businesses need funds at every stage, whether it is for implementing new business plans, purchasing new equipment or moving to a new office. The need for funds also varies, based on the size and requirements of the business.
This is where business capital loans can make a huge difference. Fortunately, the process of getting a business loan in India has become much easier, as there are many banks and financial institutions fulfilling this by offering options to apply for a business loan online.
Gone are the days when you have to go to follow a long procedure spanning several days to apply for a loan.Now, you can get a business loan in India, at the click of a button.
However, before you apply for a loan, it is important to know a few things about business loans in India.
Types of business loans
Broadly, there are two types of business loans that funding institutions offer to help with your business plans. They are secured and unsecured working capital finance.
To get a secured business capital loan, a business needs to provide collateral security. This can be in the form of assets or property such as computers, company vehicles, shares and real estate (these have to be owned by the business).
In the case of collateral free business loans, the company gets the funds without pledging any property or other assets.
Depending on your specific requirement, you can apply for a secured or a collateral-free loan.
Factors to consider before getting finance for business
There are several individual and business-specific factors and objectives that you need to consider before applying for a custom business loan.
Goals: Your Company’s vision and mission are as important for the lending institution as they are for you. They need to be assured that the business loan will support business growth objectives that will make a difference to your company’s bottom-line.
Loan amount: As a borrower, you need to have a clear idea of how much funds you want to borrow. For this, having a business plan iscritical to figure out how much money is needed to drive the business objectives for which you’re seeking the loan.
Business plans: Putting plans down on paper makes it easy to convince a financial institution on reasons why business capital loans are needed. A business plan is like a road map and an essential component of the loan process.
Loan Repayment Schedule: When taking a new business loan, you need to consider the monthly EMI that you need to pay for the loan, as you cannot afford any surprises.You need to check your EMI calculations, considering the interest ratesandperiod of taking a loan, toget exact amount of EMIs payable.
Documentation: Depending on the type of loan required – secured or unsecured – the documentation you need to submit will varyFor an unsecured loan, the minimum documentation required is your KYC documents (Aadhar and PAN Card), the bank statement of the business, and business documents. These will vary for each lender.
A small business can apply for a loan with a bank or a new-age lender. New age lendersoffer a range of custom easy business loans, personalized to your business needs. This ensures that you can get the specific funds tailored to your specific needs, just when you need them.
Once you have applied for a loan by filling up an online loan application, with all necessary supporting documents, the loan processing takes about 3 to 10 working days from the date of submission, depending upon the lender. Once the processing is complete, you will receive the loan amount into your bank account.
Tribe 3 offers the best unsecured business loans online in India, on transparent and competitive interest rates. Click to know more.
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