If you are an aspiring entrepreneur or an established business owner looking to expand operations, you may consider taking a business loan to meet your financial goals, thereby transforming your dreams into reality. Every business demands steady financing and capital influx to grow exponentially; hence, it is imperative for you to choose the right business loan. Furthermore, in recent times, the world is increasingly turning to digital modes of lending. As a result, seeking a well-sought business loan and getting it sanctioned as quickly as possible is only a piece of cake now! The good news is that you can easily avoid undergoing cumbersome procedures of traditional modes of availing loans, and still get your financial needs addressed.
Why online business loan is a wiser option to choose
It must be understood that traditional ways of applying for loans have taken a backseat for the simple reason that an online business loan has emerged as an easier, more convenient and quicker alternative. Lending institutions like Finserv MARKETS have developed online tools that help you assess the right kind of loan, most suited for your needs. The loan products that are available are also listed online which aids you in making an informed decision. Additionally, it is much more lucrative when you are using your energy and brainstorming capacities to come up with better business expansion ideas than wasting your time standing in queues waiting for your loan to be approved.
Discussed below are some of the reasons why taking an online business loan proves to be better for your business in the long run.
Plethora of available options
A lot has changed now due to the entry of financial and Non-Banking Financial Companies (NBFC’s) in the market.
As an entrepreneur, you now have the option of conducting personal research based on available information and choose the loan product, repayment scheme and rate of interest of your choice.This will enable you to not only prepare a plan for repayment but also have an option to save money, that you wouldn’t have otherwise, simply due to lack of information.
Quick disbursal and business action
It must also be noted that because NBFCs automate the entire process of loan disbursal by using various digital technologies. The entire process is quick and you will have your loan amount credited to your bank within just 24 hours of approval! This is made possible using advanced algorithms and flexible processes of approval that focus on providing the customer with a hassle-free experience. Such consumer-centric processes allow you to get started with your business ideas sooner.
Faster and more transparent verification
For an online business loan, procedures are even simpler. In the digital space, easy verification processes like Aadhar authentication, digital records of owned properties, e-signatures, e-banking etc. can help conclude the entire procedure.
After you have uploaded the required documents for business loan, your data is processed by means of algorithms that leave no space for errors or discrepancies.Additionally, problems relating to printing receipts and dispensing them are also eliminated.
Reduced need for collateral
Usually, unlike banks, NBFCs are not big on securing your loan against one of your owned properties or assets as collateral. In most cases, if your credit score and past records are clean, it is possible for you to apply for a business loan without keeping anything as mortgage. In addition to this, it is also possible for you to opt for bigger amounts without having to worry compromising your property in the event of unforeseen business losses.
Traditional Business Loan V/S Online Business Loan
Let us have a quick look at some of the major differences between online business loans and traditional business loans.
|Online business loan||Traditional business loan|
|The entire process of availing the loan is online. Therefore, the loan application is approved quickly and the amount is disbursed within a short span of time||You will have to apply for a traditional business loan manually by visiting the branch office of the lender. Thus, the process of loan approval and disbursal is time-consuming|
|Simple eligibility criteria and hassle-free online application process||The eligibility criteria are more stringent, and therefore, it is comparatively difficult to qualify for a traditional business loan|
|Borrowers can easily avail a smaller amount for short durations||It is difficult to obtain short-term loans for small amounts|
|Borrowers can avail an online business loan despite having an average credit score||Borrowers are required to have a high credit score to avail a traditional business loan|
|It is easier to avail an unsecured business loan||It is hard to qualify for an unsecured business loan with traditional lenders|
|In case of online business loan, borrowers also get the option to customize their business loan according to their requirement||Traditional lenders are usually stringent with loan requirements. Moreover, borrowers are required to have several years of business experience to qualify for the loan.|
Now that you are well aware of the differences between an online business loan and a traditional business loan, ensure that you make the right decision while availing credit for your business expansion. In case of any query, you must seek the help of a financial advisor. This will help you avoid any inconvenience in the later stages.
With Finserv MARKETS, applying for Bajaj Finserv Business Loan is easy, quick, completely hassle-free and host of other benefits of business loan.
So why wait? Get your business the capital it needs, today!
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”