Requirement of Business Loans for the Service Industry and SMEs

In the recent years, India has witnessed the establishment and growth of multiple SMEs (Small and Medium Enterprises) and start-ups. This growth has also lead to the rise in demand of business loans as these SMEs require capital to keep the businesses running. Capital is needed for expansion as well, how and where should these budding enterprises go for funds?

Availability of loans in the market:

Business Loans from banks of Non-banking Financial Company (NBFC) has been a favourite with SMEs as the process for application is digitised, documentation is minimal and is approved instantly. Since their presence is so dominant in the digital sphere and the loan processing is also pretty much done online. They are also known as FinTech companies.

The category of your business loan could be a working capital loan, invoice finance, credit for expanding the business or any other loan.

What do these loans mean?

A working capital loan is taken to cover the daily running costs of the company. These are short term loans and help the companies to grow.

Invoice finance is another popular SME loan where the lender advances money against the unpaid account receivables of the borrowing business. If the borrower has bills that are yet to be fulfilled by the client, invoice finance takes care of the payment that is due.

Loans can also be taken to expand your business, open a new outlet and buy more equipment for the company. Doctors, retailers or anybody who wishes to expand and need quick money can approach a FinTech.

Features of Business Loan:

• Collateral free 

Business loans do not require any security to be pledged against the loan amount.

• Fixed Interest Rate 

They have fixed interest rates. In Finserv MARKETS, the interest rate is 18% onwards, per annum.

• Hidden Charges 

There are no additional charges over and above the processing fee and interest rate.

• Interest only EMI 

During the initial period of your repayment tenure, you only pay the interest amount as EMI.

• Flexible Repayment 

You have complete control and flexibility over the repayment of the principal amount. You can also read about how loan repayment works.

How can one apply for a business loan?

Application of business loan is just like any other loan. You have to mention the cost and exact amount that you will be needing towards the business. Once you know the amount and have the required documents to apply for the loan, you can proceed. The application cane be either done online or you can visit a branch. If you’re eligible for the loan, it will disbursed into the account after a thorough background check.

So if you have a dream to achieve, work on your idea and take your business to greater heights. Do not hold yourself back due to lack of funds. Get a Bajaj Finserv Business Loan available on Finserv MARKETS, today! What’s more? Your online business loan application can be approved under just 3 minutes and the loan will be credited to your bank account within just 24 hours!

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!