Funds are essential factor for a company to function and expand. Companies, particularly Micro small & medium enterprises (MSMEs), being not a cash-sufficient company have to source the funds from the financial lenders in the form of business loans.
Business loans with attractive features have been launched for the MSMEs. One such business loan is the MSME loan that seemto be the best option for MSMEs, but the new business loana Flexi Business Loanis recommended for MSMEs.
What is FlexiBusiness Loan?
A Flexi Business Loan is a kind of business loan wherein immediately after the loan application, a business loanin the name of MSME is created whereby the entire loan amount is assigned. And MSMEs can withdraw the money as & when they need it and as much as they need to cater to their requirements like to purchase new machinery, to implement business growth plans, etc. While NBFCs like Ziploan provides flexi business loan at interest rates that are very reasonable along with minimal documentation to assist MSMEs grow and expand their businesses.
What are the benefits of Flexi Business Loan?
Benefits of the Flexi Business Loan to an MSME have been stated as follows:
1. The business loan interest rate is charged only on the loan amount withdrawn and not on the entire loan amount assigned to the loan account.
2. MSMEs can withdraw funds from the Flexi business loans at multiple times and for this, MSMEs need not submit any additional documentation.
3. Under this business loan, MSMEs may repay the loan amount in parts as and when they have the funds to do the needful and there would be no extra charges for this.
4. MSMEs can avail an option to pay only the interest amount as EMI letting the EMI amount to be reduced by almost 50%.
How to apply forbusiness loan- Flexi Business Loan?
The method to apply for business loan under this scheme is very simple, straight forward and hassle less. The stepwise method is as follows:
1. Flexi Business Loan being an online business loan, MSMEs can apply for the business loan just need to visit the web portal of the financial lender, duly fill its application form, and submit the same.
2. MSMEs then need to upload the documents on the web portal. And within a few clicks, the Flexi business loan is applied.
2. As soon as the Flexi business loan is sanctioned; the loan amount is created, and the desired loan amount is assigned to the business loan account within just a few days from the receipt of the business loan application.
To conclude, Flexi Business Loan seems to be the saviour for MSMEs with being the most beneficial.
1 What is an MSME business loan?
An MSME business loan is a business loan whereby the financial help required by MSMEs for their emergence and expansion is made available by the financial lender.
2 What is MSME loan eligibility?
The MSME loan eligibility for an MSME loan apply are as follows:
i) The applicant of the MSME needs to be a minimum of 25years of age.
ii) The business of the MSME should be more than six-month-old.
iii) The investment in the manufacturing sector must be Rs. 10 crores or less and in the service sector must be Rs. 5 crores or less
3 What is a Business Loan EMI calculator?
A Business Loan EMI calculator can be used to determine the monthly payable EMI.
4 What are the documents required for business loan?
The documents required for business loans is proof of identity, proof of address, business registration copy, rent agreement copy, ITR copy, passport size photo, etc.
(Disclaimer: This is a featured content).