India has witnessed a massive boom of small and medium scale businesses in recent years. These businesses contribute significantly to the nation’s economy. Numerous entrepreneurs across the country avail small business loans to ensure the smooth functioning of their business. The loan amount availed through small business loans can be utilized for various purposes such as meeting working capital needs, purchasing machinery, marketing, hiring staff, paying utility bills etc. Startups can avail small business loans for startups to cater to their financial requirements. Below, we are going to have a quick look at what types of businesses qualify for small business loans.
Types of businesses that qualify for small business loans
Almost all small businesses can avail a small business loan.
- Businesses that fall under the structure of sole proprietorships.
- Partnership firms, co-operative and private companies can avail small business bank loans to manage their financial requirements.
- Businesses that belong to the high-risk category, such as restaurants, coffee shops, etc. may find it difficult to qualify for a small business loan.
Things to consider before applying for a small business loan
Improving Credit Scores
- If you are an entrepreneur looking to avail a small business loan, make sure that you work towards improving your personal and business credit scores beforehand. This will not only boost your loan eligibility but also help you avail a higher loan amount at a reasonable interest rate.
Perfectly Crafted Business Plan
- Make sure that you have a well-crafted business plan and you are aware of the purpose behind availing the business loan. This will help you gain the confidence of the lender, thereby increasing the chances of your loan approval.
Compare Business Loan Offers
- You should also make it a point to compare various business loan offers provided by different financial institutions before making the final decision. This will help you avail a small business loan that best suits your needs.
With leading online lenders, you can avail small business loans quickly as compared to traditional banks. Also, the business loan offered comes with flexible repayment options and this reduces the repayment burden significantly. Before applying for a business loan, you can also check your business loan EMI with the help of an online Business Loan EMI Calculator. This will help you plan your monthly budget wisely, thereby allowing you to repay the loan amount within the stipulated time.
What are the typical loan terms?
- To avail a small business loan you must have a business vintage of at least 3 years.
- The repayment tenure of Bajaj Finserv Business Loan ranges from 12 to 60 months.
- The interest rate is usually 18% p.a onwards and the loan processing fee is up to 3% of the loan amount.
- Bajaj Finserv Business Loans are unsecured, and thus you do not have to provide any security while availing the loan amount.
You can consider availing a Bajaj Finserv Business Loan available on Finserv MARKETS. You can easily avail a loan amount up to Rs. 30 Lakhs without pledging any collateral. The repayment tenure is flexible ranging between 12 to 60 months and thus, you can opt for a tenure according to your convenience. Simple eligibility criteria, easy online application process, minimal documentation, instant loan approval and quick disbursal are some of the major advantages of availing a business loan at Finserv MARKETS. Let us have a look at the steps to avail a small business loan at Finserv MARKETS.
Steps to avail a small business loan
Step 1: Visit the official website
Step 2: Fill the online application form by submitting your personal and business details
Step 3: Specify the amount you wish to avail along with the preferred repayment tenure.
Step 4: Once you submit the online application, your loan application will be approved and you will receive the loan amount shortly.
Now that you have a better understanding of small business loans, ensure that you make the right choice for financing your business needs. You can avail of small business loans on Finserv MARKETS easily. Moreover, the loan comes with attractive interest rates and various features such as prepayment facility, flexible repayment option, minimal documentation, less processing charges, etc. So why wait? Avail a small business loan and take your business to greater heights.
If your are an sme or msme don’t miss out on the relief package on MSME Loan provided by the government for economy revival
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”