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All you Need to Know About Business Loans

By Finserv MARKETS - Feb 5,2019
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All about Business Loan

It is absolutely critical to have a healthy balance sheet when it comes to running your business. Be it for daily cash flow requirements, extending a new line of business line, business expansion or for purchasing new machinery, equipment or technology, a business needs funds at every stage of its growth or maturity.

A business loan could be a suitable option when it comes to financing your business goals and meeting your objectives. There are various types of business loans available in the market and we have detailed out some of them for you to make an informed decision.

Let’s explore what these are!

Types of business loan

1. Machinery and equipment loan

A business needs to constantly evolve in order to stay competitive in the market and serve its customers well. This is essential when it comes to small / big manufacturing businesses that need to constantly focus on new ways to lower costs and achieve high quality output. A machinery or equipment loan can help you achieve the same by acting as a means to finance the purchase of a new machinery or repair/upgrade an existing one. This type of loan can help you thrive in today’s highly advanced and innovative market.

2. Working capital loan

Every business needs money to ensure smooth running of operations and day to day activities. However, you may fall short of finances thereby, rendering you unable to properly run your business. A working capital loan is an excellent product that can be customized to fund your working capital needs like inventory management, cash flow or other operational needs.

3. Professional loan

Being your own boss is what every individual dreams about but the same is not as easy as it sounds. Starting your own practice can be a daunting task when it comes to finances as you need to take into account the cost of real-estate, manpower and technology. A professional loan is a product that has been custom-made for self-employed professionals like Chartered Accountants (CA), Doctors, Engineers etc. As a professional, you can avail this loan to start or grow your practice and serve your customers well. Finserv MARKETS offers business loans for self-employed doctors & chartered accountants.

4. Business loan for women

Women have always been a source of inspiration due to their ability to plan and multi-task. Business loans for women is a product that has been designed aid women entrepreneurs to start their own business or expand an existing one. The product comes with some exciting benefits and features to help women realize their dreams and achieve their goals and objectives. There are a lot of business loan schemes for women to boost women entrepreneurship in India

Features of a business loan

  • Hassle-free application process
  • Simple eligibility criteria
  • Minimal documentation
  • Flexible Repayment tenures
  • High-value loans
  • Collateral free loans
  • Transparency with no hidden charges

Advantages of a business loan

Easy online process

You can avail a business loan conveniently through a quick and 100% online, hassle-free process. As this is an unsecured loan, there is no requirement of any collateral and your loan application gets approved in a span of minutes. Once approved, your loan amount can be disbursed in 24 hours directly to your bank account. With Finserv MARKETS, you can keep a track of your loan and payments through our customer portal, anytime and anywhere and enjoy host of other benefits of business loan.

Flexible tenure

We understand how important it is for you to plan for the success of your business as well as be prepared for any ups and downs. With Finserv MARKETS, you can choose a flexible loan repayment tenure as per your estimated calculations and repayment capacity. You can also opt for a hybrid flexi loan wherein you only have to pay interest for the loan amount you utilize, with an option to and withdraw (basis credit limit) as much as you want depending on business requirements. You should use Business Loan Calculator to understand your accurate monthly outflow.

Customized loan offers

You can choose from a variety of pre-approved offers and enjoy additional top-ups and discounted rates to fund your business needs.

Download Bajaj Finance App, to get personalized offers on Business Loans.

Business Loan Interest Rate

While availing a business loan, you must carefully make a note of the interest rate charged by the financial institution. Several factors determine your business loan interest rate. Some of these factors are mentioned below:

Credit score

If you have a high credit score, you can avail a business loan at a competitive interest rate. Therefore, make sure that you enhance your credit score before applying for a business loan.

Business experience and revenue

If you have several years of business experience, it will be easier for you to avail attractive interest rate. Moreover, if you have a well-established business with high monthly revenue, lenders will consider you a low-risk borrower and offer a competitive interest rate.

Collateral

Since business loans are usually secured loans, you will have to pledge collateral while availing a business loan. The higher the value of your collateral, the better will be your chances of availing a competitive interest rate.

Business loans available at Finserv MARKETS come with a competitive interest rate and can be availed without pledging collateral.

Documents Required for Business Loan: 

The documents required for availing a business loan are mentioned below:

  • Identity Proof
  • Address Proof
  • Last 3 years ITR, balance sheets certified/audited by a CA.
  • Last 12 months bank account statement
  • Certificate and proof of business Existence
  • Business Profile
  • Office address proof – ownership/ lease / rent agreement/ utility bill

Keeping all the required documents readily available will help improve your chances of getting a business loan. Business loans available at Finserv MARKETS can be availed easily with minimal documentation.

How to Qualify for A Business Loan?

  1. You must be a citizen of India
  2. You must be a self-employed individual
  3. Self-employed individuals between 26 – 66 years are eligible and can apply for a Business Loan
  4. You must have 3 years of business vintage

How to Improve Chances of getting a Business Loan? 

A business loan can help you arrange funds required for the expansion of your business. Therefore, before applying for a business loan, you must take various measures to boost your chances of loan approval.

Let’s have a look at some tips that can improve your odds of getting a business loan

A well-crafted business plan

Make sure that you have a well-planned business strategy in place. Having a well-crafted business plan will assure the lender about the possibility of positive cash flow in the future. Thus, the lender may consider you a low-risk borrower and approve your loan application without any hassle.

Credit score

A high credit score will not only increase your loan eligibility but also help you avail a higher loan amount at a reduced rate of interest.

Research

Before applying for a business loan, you must compare loan offers provided by different lenders. This will help you avail a business loan that best suits your needs. Also, it is advisable to avoid multiple loan applications as this can hurt your credit score. Make sure that you calculate your loan eligibility beforehand by using a business loan calculator. This will reduce the rejection chances of your business loan application.

How to apply for a business loan? 

  • Check your eligibility by providing us with your personal and professional / employment details
  • Customize your loan by entering the required loan amount and repayment tenure
  • Once your application is approved, get funds credited to your bank account within 24 hours

 

 

A business loan is designed to fund your immediate business needs. It could prove to be an ideal vehicle to boost your enterprise by pumping in the required funds at the right time. You can avail a Bajaj Finserv Business Loan at Finserv MARKETS.

“Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522