Business Loan Guide: All you want to know before taking a small business loan

From securing working capital for everyday operations to paying employees and rent, business operations often require sufficient capital to overcome the obstacles of tomorrow. In such a situation, business loans act as the perfect instrument for funding your company while you can focus on developing your business into a success story.

Many lending institutions offers business loan at an affordable interest rate, providing you with a fast & user-friendly interface where you can apply for a business loan instantly. Depending upon the eligibility of applicant’s loans for business can go up to 75 lakhs that too from the comfort of your home while enjoying flexible repayment options and minimal documentation to fund your business needs.

When can I opt for a business loan?

Business loans act as a vital source of funding for you to manage the capital requirements. Nowadays the application process have become easy, borrowers can apply business loan online. It can be opted for to solve problems such as:

Lack of funds for working capital

● Funds needed to improve existing operational efficiency

● To pay wages, salaries, and rent

● To manage cash flow problems between credit cycle of your business

● To pay the outstanding business debt

What are the benefits?

There are various benefits to obtaining a business loan, depending on the nature of your firm and its current needs. Business loans can help you get the short-term credit necessary to cover operating expenditures, maintain a healthy credit cycle, handle debt collection concerns, and fund your business initiatives aggressively. By securing a business loan, you may avoid draining your savings for a new venture, providing you with the confidence to work more effectively on your business without compromising on your financial security commitments.

Eligibility criteria for a business loan

While applying, you must be a self-employed individual whose age is between 25-65 years. You may have to provide your income tax returns for at least one year, preferably the previous year. A minimum of three years must be passed since the establishment of your business when you apply for a business loan.

Documents Required for a Business Loan

Now that you have a better understanding of business loans, let’s look at the approval procedure. Approval for a company loan requires us to consider various factors, depending on the type of loan you have requested. This involves evaluating essential elements such as your credit score, financial history, work experience, and business income. To critically evaluate these factors, we require the following documents:

Bank statements (Preceding 12 months)

● Business registration proof

● Proprietor/Company PAN Card Copy

● Proprietor’s Aadhaar Card Copy

● Partnership Deed Copy (in case of partnership firm)

● Other documents such as certificate of incorporation or certificate of registration

After you submit these documents, your application, the business loan interest rate, and the amount which can be sanctioned to you.

Use Business Loan EMI Calculator to Know EMI

The primary advantage of EMI Calculator is that it allows you to calculate business loan EMI and ascertain the monthly amount required before you pay it. This will assist you in properly planning your monthly budget. Additionally, you may use the Business loan EMI calculator to determine how much money you need to set aside based on the business loan interest rate. By doing so, you can be one step ahead in your financial management while running your business.

How does the Business loan process work?

The online application process for business loans is quick and efficient. All you need to do is follow five simple steps:

1) Fill the online application form - Click on Apply Now. Provide your personal and business details in the online form.

2) Select your Lending partner - Select your preferred lending partner from the wide range of options we offer based on the offers provided.

3) Specify your loan details - Choose your preferred loan amount and the repayment period. It is advisable to use our Business Loan EMI calculator so that you can carefully plan your finances for repaying the loan.

4) Upload your documents - Provide the requisite scanned copies of all the documents which are requested.

5) Approval & Disbursal - Once you submit your application, sit back and relax. We will verify your application, and once approved, the money will get credited into your account.

Five reasons why a business loan from lending marketplace or aggregator is the right choice

a) They offer a smooth and convenient online application process, which reduces the hassles of visiting offices physically and applying for business loans.

b) You can choose from various lenders, allowing diversity in selecting the right lending partner for your needs.

c) It is a 100% transparent process that aims to provide quality service to the customer.

d) They offer quick approval and disbursal system to meet your urgent requirements.

Every small step counts in achieving your business objectives. Hence ensure your business gets the capital it needs. To assist you in reaching new levels of success daily, a variety of collateral-free business loan options are there in the market that can tailor to your company’s requirements.

(Disclaimer: Branded Content. Author: Mithilesh Singh is a writer who specializes in writing content on Insurance and Finance subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of Tech Preview.)