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September 9, 2019 at 8:00 AMComments: 0 Faves: 0

Know all about Small Business Loan

By Alok More Blogs by This Author

A business loan is a financial agreement between a borrower and a lender. Entrepreneur borrows money when he wants to hire new staff or purchase what they need to grow their business.

Different financial institutions have different criteria. You must know that the traditional banks are not the only places to get small business loans in India from. There are numerous other sources from where you can get loans for your business.

Cash insufficiency can become a hurdle in your path to attaining entrepreneurial success. People who run their own business often witness such problems were due to lack of funds they missed several opportunities. Under such critical circumstances, an individuals first option is to approach a bank for some help. However, there are many prerequisites that one needs to fulfil for a bank loan and sometimes, the application for a loan is rejected as well. To fill this gap, many lenders in India offer Small Business Loans - which are taken by business owners to continue operating their business smoothly. These loans are widely popular and easy to avail.

Benefits of Taking Business Loan

  1. Flexibility

    rnThere are different types of business loans you can choose from to fulfill your specific requirements. You have the flexibility to use a loan to start, expand or upgrade your business. Some of the sources dont even know require a guarantor or security.
  2. Easy Availability

    rnMany banks and private lending institutions offer loans for small business loans without collateral. As a result, it can be easy for entrepreneurs to get loans and sustain ventures. Most of the lenders have made lending easier for the borrowers by letting them apply for loans easily.
  3. Convenient

    rnYou can see the flexible nature of small business loans in their repayment options, too. These sources understand the complexities of business and design their plans accordingly. Depending on the cash flow of the business, lenders offer suitable repayment plan. The entrepreneur also have the option of increasing or decreasing the monthly payments of their loan to match their financial condition.
  4. Low interest rates

    rnPrivate lending institutions are different from each other their interest rates are different. Loan rates are not dependent on the loan amount. The viability of the business model, the length of the loan, credentials of the borrower, and the financial condition of the company are some of the factors that must be kept in mind.
  5. Variety of Choices

    rnThere is a wide variety of options available online if you need Small Cash Loans. The lenders offer various kinds of personal loans to suit your situation and requirements such as wedding loans, debt consolidation loans, payday loans, self-employed loans, etc. One may choose according to their necessity.
  6. Easy Application Process

    rnUnlike bank loans, these loans are relatively easier to apply. It only takes a few minutes to apply for a personal loan online. The basis on the information provided by you in the application form, the lenders will conduct verification and they will also assess your loan eligibility before making their decision. All these take a few minutes and the decision is displayed on the screen.

Steps to Get Small Business Loan at Low Interest

If you are looking for business loans with low interest rates, you should narrow down lenders in order to get the best possible deal for yourself. There are several lenders out there who offer business loans. However, there are often high interest rates charged or there are collateral requirements. These are things that often deter small businesses who urgently require funding for future growth or consolidation.

The first thing to do is do some research into why you need a loan. The purpose of the loan should be clearly defined. You should be able to present a clear plan of how you plan to use the funds to your lender. You can use the business loan for the following reasons:

  • Expanding your business and growing operations

  • Consolidating business operations and taking care of daily operational expenditure

  • Building up inventory for meeting seasonal/peak customer demand

  • Buying or upgrading equipment/machinery

  • Arranging funding for new projects

  • Arranging funds for advertising/promotional expenses

Once you have zeroed in on the purpose of the collateral free loan, you should then do your research on how much you can actually afford. You should be clear about what you are eligible for and the total cost of the loan over a prolonged period of time. You can use an online eligibility and EMI calculator to work out the amount that you are eligible for. Check the eligibility criteria of your lender and see whether you match the same. Work out the monthly EMI that you have to pay on the amount that you desire and see how much you can afford in this regard.

These are things that have to be done before applying for a business loan. The next step is to arrange all the required documents. You can apply for a business loan from Bajaj Finserv. You can easily apply online by filling up the form and uploading the necessary documents. You will be instantly approved online should you meet the eligibility criteria. Company representatives will contact you with details of pre-approved loan offers.

Conclusion

A flourishing business needs a constant and steady flow of money to maintain the growth of it. If you face any cash insufficiency in between, it may result in loss of revenue. For any small needs of your business, you may easily apply for a personal loan which is easy to avail. In addition to that, the cost of repayment can be spread over 12 months that will give you enough time and space to manage your regular expenses with the repayments.

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