A Detailed Guide to Business Loans in India
Business Loans always plays a vital role in the field of every business. Business is always full of uncertainties and ups downs. A business owner has to go through several of these uncertainties. Rising costs, cyclical incomes and changing business conditions mean that funds may be needed at any time. In such cases, you can take up Business Loans Guide without much difficulty. These loans can prove to be very helpful for the business service, working capital, and other financial needs. These loans are very cost effective as they provide an interest of 11-16% compared to personal loans.
How To Get Business Loan Easily:- Here we have listed out something which you should know about the Business Loan Process in India:
Eligibility – Most of the lenders keeps a specific minimum age before applying for the loan. The age is 25 for some and 27 for some other lenders. Most of the lenders do not give loans if the age of the applicant will cross 65 years during the time of repayment. This means, if your age crosses 65 while the loan is expected to be repaid, the lender may not grant it. There are eligibility criteria for business also. Once these all criteria are met, you are eligible for the loan. The lenders specify a minimum turnover which in most cases the amount is Rs5 to Rs10 lakhs. This also needs to last for at least 3 years, and some lenders also state a minimum amount of profit to be achieved. Lenders also specify a minimum income in the income tax return.
Business Instalments – The loan that meets the medium term requirements of the business is known as Business Instalment. Medium-term working capital does not turn into cash immediately so the loans can be repaid taking a longer duration.
Unsecured Loan – The Business loan is an unsecured loan. It does not use any collateral for the loan. The performance of your business is enough to pay your loan.
Loan Amount – The minimum amount of the loan mostly given by money lenders is 50 lakhs. The amount lent depends upon the eligibility of the applicant and his performance in his performance. Depending upon the income and the financial strength the loan is given.
Loan Tenure – The tenure for a loan in India ranges from 1 year to 5 years. It depends upon the performance; the owner can negotiate for better repayment terms.
Documents Required Applying For Loans – The Documents Are Below Mentioned:
Age proof (passport, PAN)
Identity proof (PAN, passport, voter ID) but for business, a PAN card and Business card
Income tax returns
Business ownership documents, tax registration.
The loans are the way to raise funds for your business. Because only proper funding can run a business smoothly. Nowadays no need to give a line in the bank queue as it is done online, it had become easy and convenient.