Business loans are loans taken by businesses or corporations without collateral. These loans are convenient for businesses to manage with emergency monetary requirements. The procedure to get Business Loans in India is easier and quicker. Thus your loan will be sanctioned faster. Here are some frequently asked questions by our customers:
What are Business Loans?
Businesses today face several challenges. One of those challenges is the requirement of collateral for getting a loan from financial institutions. Many small and medium-scale businesses today do not have collateral for loans. These businesses can take a Business Loan. An unsecured business loan is given solely upon the creditworthiness of the businessman borrower. To be eligible for an unsecured business loan, the borrower should have a good credit rating, a good credit history, and a good cash flow.
Why should you take a Business Loan?
- Helps your business grow at a faster pace
By taking a business loan your business can grow at a faster rate. You can also finish any stagnant projects or ventures with the help of a business loan.
- The value of the loan is not dependent on the collateral
When applying for a secured loan, the amount of the loan is dependent on the collateral being used. But while taking an unsecured loan, you may get a bigger amount of money because the lender is making decisions on the basis of your cash flow, credit profile, the health of your business, and so on.
- Faster Disbursement of Loans
As a business loan does not require collateral, the disbursement of the business loan is faster. The financial institution checks your documentation, proposal, and track record and then sanction the loan. Less paperwork is required for unsecured business loans.
- Repayment in EMI
You can repay the business loan in the form of EMIs. The interest rate will be applied to the EMIs over the term of the loan.
- No risk to your assets
An unsecured business loan is a loan where no collateral is necessary. Thus, all your assets are safeguarded from any risks.
- Eligibility Criteria for Business Loans
The Eligibility criteria for a business loan may differ depending on various financial institutions and the situation of the business. Here is a list of the general eligibility criteria for a business loan:
- The business must have its previous year’s financials duly audited by a CA.
- The borrower must have a good credit rating in order to qualify for an unsecured business loan.
- The business should have a vintage of at least 2 years.
- The business needs to have its Income Tax returns filed for at least the past 1 year
How do you get a Business Loan in India?
Business Loans can be defined as loans given to businesses and corporations against any kind of collateral. It is one of the most convenient financial products for businesses to manage the emergency conditions of the business
.
- Assessing the requirements of the client
We at Terkar Capital will first understand the requirements of the client. We will also talk to the client about the future of their business, their plans to expand, restructure so on, and so forth. After assessing the requirements of the client, we will make an application for the business loan.
- Application and Documentation
Many business people have experienced the tedious nature of the documentation that needs to be done for the bank loan process. We at Terkar Capital take care of the documentation. We understand what stakeholders require to disburse the loan to our clients.
Once we receive the required documents we analyze the financials of the company and choose the financial institutions that best suit the client's requirements. This helps to avoid unnecessary inquiries to cibil and mess up while raising the finance.
- Get your loan
After your proposal and documentation have been reviewed by the financial institution, your loan will be sanctioned. During the process, whenever the financial institution is in need of any clarification or any documentation we arrange for them. Our association with the client doesn't stop with the disbursement of the amount, rather it starts. We make sure the client should not have any problems while dealing with the respective financial institutions during the loan tenure.
What are the Documents Required for Business Loans?
Business loans are one of the most convenient types of loans for growing businesses. The documents required for Business Loans differ from one financial institution to another and as per the constitutions of the business. Reach out to us for documents usually required for a Business Loan.
But in the last few years, the business sector is almost saturated as the competition is significantly stronger these days.
If you do not have a proper plan to go with the flow, your business does not exist in the marketplace.
Through personal protection, one can eliminate EMI repayment's unnecessary headache, check bounce, and delayed payment.
It is usually suggested to take a suitable MSME loan instead of using your personal savings as it will help in any emergency in the future.Well, specific valid reasons are there why one should opt for an SME loan.Interest Rate:These days plenty of options are available from where one can get an MSME loan quickly.
Banks, Corporate sectors, private institutions will provide loans quite comfortably at an attractive business loan interest rate.
Moreover, availing a loan can also help you with tax deductions.No need for any collateral:Previously none of the institutions was ready to approve the business loan unless you have a good cibil score and collateral.
You can choose from a secured or unsecured loan and select anyone depending on your requirements.
Whatever you choose, you can obtain a loan against property with ease.
It is one of the preferable loan options amongst borrowers.
A business loan on the property is a feasible option, according to financial experts.To Learn More Click Here.
