Being a small business owner you need to bring your business forward and expand it at some point and you can do that with the help of a business loan. This will serve as an important milestone that helps them fuel their growth. But availing a business loan is a tedious task as there are a lot of formalities and verification that need to be carried out before the loan is approved.
However, some banks offer quick and easy pre-approved business loans that can be customized to suit the financial needs of their customers. The pre-approved loans ensures those small businesses fast tracks into its next phase of growth. Whether it is to upgrade your existing infrastructure, expand to different business verticals or to simply support your business finances in times of financial crunch.
What is Pre-approved Business Loans?
A pre-approved business loan or a pre-approved loan means the bank approves a loan amount before you apply for the same. These loans are mostly offered to individuals who have a robust existing relationship with their banks or Non-Banking Financial Company (NBFC). The relationship could be in the form of loans, having a salary account, Credit Cards, or any other financial service or product associated with the banks or financial institution.
As this is a pre-approved loan product for the existing customers of the bank, the lender already possesses the relevant details and documents of their prospective borrowers. Thus, the application process for this loan in India is relatively easier. They are usually sanctioned within no time and have attractive rates of interest.
Business Loan Eligibility
You need to check with your business loan eligibility. As this will be analyzed by the financial institution before you’re offered a pre-approved loan. Your past credit record with the bank will be one of the factors that determine your eligibility.
For getting a Business Loan, the following list of business loan eligibility criteria would also be assessed:
- The applicant’ age should be 26 years to 66 years old.
- The business should be at least three years’ old to be eligible for a loan
- Income Tax Returns (ITR) should have been filed for at least one year
Documentation Required For a Business Loan
- Aadhaar Card/Passport/Driving License.
- PAN Card.
- A Business Registration Certificate or any other solid proof to validate the business’s existence
- Relevant financial documents
- A bank account statement of the previous month
Furthermore, the lending organization will also check if there are any existing loan on your account and thereon, proceed to deduct that amount while calculating the approval limit. In case of a secured pre-approved Business Loan, lenders will also do an asset quality check to verify whether you meet the criteria. Whatever asset you wish to purchase by using the loan amount will be verified by the lender. Accordingly, your loan will be sanctioned and disbursed basis the eligibility parameters and due diligence guidelines of the bank.
Once the evaluation process is completed, the lender will issue an approval letter notifying you of the loan approval and the amount that can be disbursed to you. It needs to be mentioned that the sanction is valid only for six months depending on the bank or lending institution following which a fresh approval must be sought. Further, it should also be mentioned that the processing fee will not be refunded in any given case.
Why Pre-Approved Business Loan is Better?
When you work with a lender, you find out exactly how much money they’d be willing to lend for your business. They can run some numbers for you and help you figure out exactly how much you can borrow from this loan. You can also verify this calculation yourself by using an online calculator, but it never hurts to get pre-approved and have a lender go over everything they might point something that you didn’t. They know their policies well, and other lenders are likely to have similar policies.
One of the pre-approved business loan benefits is it’s a product only for an existing customer of the bank or financial institutions, the lender already possesses the relevant details and documents of the prospective borrower. Thus, it makes the application process for pre-approved Business Loans simpler. These loans are usually sanctioned within no time and have attractive interest rates which are sometimes lower than what regular loan products have to offer.
Pre-approved loans can put you in a position to control all your future negotiations. When you get pre-approved, you automatically get in a better position to negotiate with any vendor before buying any equipment, or assets for your small business. With a sanction letter in hand, you will be taken more seriously and even given a quote which is customized as per your preferences and your situation.
While a pre-approved Business Loan might not be very different from a standard loan in terms of features, they surely have their own set of benefits to make your business dreams come true.
In order to manage your financial needs, you can avail business loan available on Finserv MARKETS at attractive rates of interest. You can avail a small business loan up to Rs. 30 lakh. You can use the funds to invest in infrastructure, expand operations, upgrade to the latest plant and machinery or maintain inventory. Apply for a business loan online and avail pre-approved offers for an instant loan without security. You can also enjoy a high top-up loan or an interest rate reduction on your business loan.
Finserv MARKETS is an online platform, offering customized Business Loans that are affordable and hassle-free. You can get a business loan with affordable interest rates, zero hidden charges, quick approval and more. These unsecured business loans get approved under 24 hours, come with easy eligibility criteria and can be applied for with minimal paperwork. These exclusive features make Finserv MARKETS the best, fastest and most hassle-free business loan provider to meet urgent financial needs of your business. Anyone from self-employed non-professionals to a self-employed professional can apply for a business loan and finance their business.
“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.”