|Things To Check While Availing Business Loan For Your Venture|
Businesses require additional
investments to expand their operations and bring in more profit. It also
involves hiring skilled and experienced employees, purchasing new equipment,
updating inventory, investing in infrastructure or moving to a new location.
Some business owners may require access to more working capital as well.
obtain additional funding to implement the above measures by opting for
business loans provided by several reputed financial institutions.
cost-benefit analysis as well before availing credit to measure its
India provide business loans, an individual should compare the features and
benefits offered by them before opting for the credit as well.
Here Are The Things One Should Check
Before Availing A Business Loan:
borrowers should check the eligibility criteria for the advance as set by the
lending institution. Since the eligibility criteria vary from lender to lender,
one should look for a lending institution that provides easy to meet
eligibility criteria for easy loan processing. The basic eligibility criteria
laid down by lenders include:
within 25-55 years.
that is operating for a minimum of three years.
minimum credit score of 750.
applicants should also go through the list of documents required and keep them
handy during the business loan application process. The necessary documents
partnership agreement, certificate of commencement, Article and Memorandum of
Balance Sheet and Profit & Loss Statement, bank account statements, GST
driving licence or any other official document.
borrowers may need to furnish other loan related documents as asked by the
financial institution that has a simple application process which can be
completed online. It will enable them to save valuable time. Additionally,
offers like pre-approved offer make for an efficient credit application
offers can be availed on other unsecured advances like personal loans, credit
cards and the likes. Borrowers can check their pre-approved offer by entering
minimum details which include their name and contact information.
lending institution that offers substantial funding at affordable business
loan interest rates. Borrowers can also consider opting for business loans
without collateral, which can be availed quickly without mortgaging any
personal or business assets.
institutions that offer additional benefits to applicants such as Flexi Loan
facility, online customer account, etc. With features like Flexi Loan facility,
business owners can withdraw only the required amount from a pre-sanctioned
loan. One also has to pay interest only on the amount withdrawn. This facility
is beneficial for business owners who need frequent credit to meet their
working capital requirements while containing interest accrual.
should also know how to determine how much working capital your business need.
Moreover, features like online account will enable borrowers to access their
account easily and keep track of all business loan-related activities.
one should prepare well to improve their eligibility for a business loan and
enable them to repay the loan quickly. Consequently, one should try to take
steps that improve their CIBIL score for boosted eligibility.
their business credit report matter when applying for a business loan.
specialised business loan with features that are more suited to your business
then go for a working capital loan and if you want to upgrade your machinery,
opt for a machinery loan. Manage your business advance properly and pay EMIs in
time to maintain creditworthiness.