How Do You Get A Business Loan In India?

By Author: Rashmi Sharma
Total Articles: 1
Comment this article

A business loan is a credit service availed by business owners to fulfil the financial requirements of their business. The funds are borrowed from the banks, NBFCs, online lenders, and other such financial institutions and can only be used for business purpose.

A business owner may avail a loan for business for the following purposes:

> Starting or establishing a new business venture
> Expanding an existing one
> Buying new and updated machinery to increase production
> Buying inventory
> Maintaining liquidity and working capital

There are several types of business loans in India, but they are majorly categorised under two categories, namely secured loans and unsecured loans. Secured loans are where the business owner is required to pledge security while there is no such need in unsecured loans. Under these two categories, the other business loan types include term loans, machinery loans, working capital loans, line of credit, microloans, etc.

Depending on whether you need want to avail a secured or unsecured loan, you can reach out to the lender. For secured loans, you can ...
... apply for a loan with banks. And for unsecured loans, you can use with NBFCs and online lenders.

Before applying to any lender, check his eligibility criteria and ensure that you meet it. To avail the service, you need to fulfil the requirements which may vary. However, the standard criteria are:

> The borrower should be at least 21 years old.
> The business should be two years old.
> The business should have filed ITR of more than Rs. 1.5 lakhs and turnover of more than Rs. 7.5 lakhs in the previous year.

If you meet the eligibility criteria of the lender, then arrange for all the documents required by the lender, which may include:

> Identity and address proof
> Business proof
> PAN card and Aadhar card
> ITR
> Bank statement

You can fill the offline or online loan application as per your convenience. If you meet the eligibility criteria and have provided the documents as per the lender, the business loan will be approved, and the amount will be disbursed in your account.

Visit: https://loanduniya.weebly.com/

Rahul Setia works at Ziploan.in, RBI registered NBFC as AVP Digital Marketing. Rahul enjoys creating innovative marketing strategies and is an expert at website data analysis. He is passionate about blogging and frequently shares his extensive knowledge through guest posts on different portals. Rahul has done his bachelors in Information Technology from Gurgaon.