Bright Future For Business Loan In India

By Author: Diala Bank
Total Articles: 2
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Business loan in India is required to meet financial requirements of the business. The person can use business loan in India for business expansion, initiating new business, business renovation, purchase of warehouse, purchase of raw material, purchase of machinery, purchase of fixed assets, paying off short term liabilities, increasing working capital, business growth, new business venture and many more. The person can avail this finance from various banks and financial institutions, such as HDFC, HSBC, ICICI, Axis, Standard Chartered, SBI, PNB, IDBI, Fullerton, DHFL and many more.

The person can avail business loan in India, as a secured loan or unsecured business finance. Secured business loan in India, is a finance that the customer can avail this finance, only if; they provide security or collateral for availing the business loan in India. The customer can pledge their business property or asset, as security to the lender. The lender provides this finance at low interest rate for longer tenure for higher loan amount, i.e. Rs.20lacs to Rs.1cr. ...
... This is so; the risk of lending is low, as lender can seize secure property or asset, in case; the customer does not do repayment of the business loan amount.

Unsecured business loan in India, means the customer can avail the loan amount, even without providing security or collateral to the lender. This means the customer does not have to pledge their asset or property to the lender for availing this business loan in India. Thus, banks provide this loan at high interest rate than from other loans, i.e. 18% to 30% for the shorter tenure of 1 to 5 years. Even the person can avail this loan for Rs.50000 up to Rs.20lacs. Even the bank checks the customer profile and credit worthiness before sanctioning for the loan.

The bank checks these things through customer documents that customer submits with the business finance application. The customer has to submit residence proof, age proof, identity proof, ITR of last 2 or 3 years, CA certified balance sheet and profit and loss account and bank statement of last 6 months of their current account. The bank verifies these documents and base on them decides about the business loan in India. The bank checks customer creditability through the customer CIBIL score, i.e. shared by the credit bureau with the lender.