Business Loan

What Is Business Loan ?

Business loans are fairly generic term used for different types of finance options that a business can access. In the current context, under Business loans we are largely referring to unsecured income-based loans for self-employed individuals or companies.

Unsecured business loans have no requirement for a security or collateral to be submitted and are offered purely on the current financial strength and past credit record of the borrower.

They are not as flexible as overdrafts and other credit lines that support day-to-day working capital requirements but given their unsecured nature, they are relatively easy to avail with simple paper work and speedy processing. However, that also means that Business loans are usually costlier than other forms of secured business finance.

BUSINESS LOANS MAY BE USED FOR:

Business Expansion
New Office Setup
Marketing & Branding
Business Improvement

HOW IS MY ELIGIBILITY DETERMINED FOR A BUSINESS LOAN?

Your eligibility is determined after looking at the following:

Last 2 or 3 years business financials.
Years in business and current level of business activity.
Nature of the industry the business operates in and how that industry has fared in recent times
City of Business& Current obligations (Any existing EMI’s being paid , credit card outstanding & Credit limit available )
Your Financial history & track record including CIBIL scores if available

To know your eligibility now or to apply, please call us on +91 93284 12613 or email us at [email protected]

WE OFFER

Loan with simple documentation, quick processing and disbursal.
Enjoy the convenience of doorstep service
Get the best in market interest rate for your personal loan
You need not worry about collaterals or guarantors
Try out the ‘Balance Transfer Option’ to get rid of high Interest current EMI’s and get slash up to 2% on interest rates on your current loan.

FAQS ON PERSONAL LOAN :

WHAT IS A BUSINESS LOAN?

Business Loans are unsecured loan which does not require any security or collateral .It also does not require any guarantor.

WHO CAN APPLY FOR A BUSINESS LOAN?

Any individual who has got a source of income from business can apply for a business loan.

WHEN CAN ONE APPLY FOR A BUSINESS LOAN?

You can apply for a business loan in order to fulfill any of your business needs which requires financial assistance.

WHERE CAN I GET A BUSINESS LOAN FROM?

Business Loans are offered by nationalized banks, private banks , foreign banks and a few Non Banking Finance Companies.

IS THERE ANY SECURITY OR COLLATERAL FOR A BUSINESS LOAN?

Business loans does not require any collateral or security.

WHAT IS THE MAXIMUM ONE CAN GET AS A BUSINESS LOAN?

Business loans are available in the range of Rs. 1 lac to Rs.30 lacs depending on the income eligibility of an applicant. However banks also have specially designed products to offer higher loans.

WHAT IS THE MAXIMUM TENOR FOR A BUSINESS LOAN?

The tenor of business loan ranges from 12 months to 60 months. However it should be noted that tenor is the discretion of the bank and also in most of the case, the tenor is restricted to 36 months.A few banks offer 60 months tenor to professionals like Doctors, CAs etc.

IS THERE ANY FEE FOR AVAILING A BUSINESS LOAN?

Yes, you have to pay processing charges as decided by the bank from time to time.

HOW DO I REPAY A BUSINESS LOAN?

Business loans are generally repaid by way of equated monthly installments (EMI)

IS THERE ANY MORATORIUM PERIOD FOR REPAYING BUSINESS LOAN?

Is there any moratorium period for repaying business loan?

WHAT IS THE RATE OF INTEREST THAT WILL BE CHARGED ON MY BUSINESS LOAN?

Rate of interest is a factor of prime lending rate (PLR) as announced by respective banks from time to time which varies with market conditions.

HOW MUCH TIME DOES IT TAKE TO GET A BUSINESS LOAN?

Generally it takes 6 to 10 working days to sanction a business loan after completion of all formalities in terms of compliance in documentation.

CAN I GET A REBATE ON THE INTEREST RATE & PROCESSING FEE?

Yes, a few banks offer special rates for those who have a relationship with their bank. The relation ship could be a bank account, exisiting loan, a credit card etc.

WHAT IF A FEW EMIS ARE NOT PAID IN TIME?

It is in the interest of the borrower to repay all the EMIs as per schedule. Delay in payment of EMIs or default would badly affect the credibility of the borrower. Moreover getting a loan at a later stage would be difficult. Generally banks share the credit history of a borrower with credit bureau and in turn they share data of credit history of a borrower with other banks.

WHAT IF I WANT TO PREPAY MY BUSINESS LOAN?

Most banks allow its customers to prepay business loans after 6 months of disbursement . Generally ,banks charge a penalty of upto 5% as prepayment charges on the principal outstanding.

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