Instant Business Loan & Its Types

Many businesses take out bank loans for a variety of reasons. Most of these small businesses take a loan to expand their business. More than 50% of the country’s GDP (Gross Domestic Product) is contributed by the MSME and the SME sector. To raise these sectors and give importance, the government has initiated quite a few schemes, offers and set up NBFCs. The growth of FinTech (Financial Technology) has made availing a loan easier and quicker. Getting a loan for business makes it easier for small business owners to take a loan this will not only improve the productivity of the business it also makes entrepreneurs concentrate on growing their business rather than insufficient liquidity.

Many businesses take out bank loans for a variety of reasons. Most of these small businesses take a loan to expand their business. More than 50% of the country’s GDP (Gross Domestic Product) is contributed by the MSME and the SME sector. To raise these sectors and give importance, the government has initiated quite a few schemes, offers and set up NBFCs. The growth of FinTech (Financial Technology) has made availing a loan easier and quicker. Getting a loan for business makes it easier for small business owners to take a loan this will not only improve the productivity of the business it also makes entrepreneurs concentrate on growing their business rather than insufficient liquidity.

What is Instant Business Loan?

Instant business loan means a loan process that is quicker and easier to acquire. Long back if a business owner required a loan for their business, the process for the same would have been time-consuming a tedious. The borrower had to submit a lot of documents and ensure enough collateral in place for the amount of loan borrowed, timely visits to the loan office, a high credit score, etc. But all of these have been eliminated due to the advancement in technology. You can apply for a loan for business and get your loan approved within a short period of time without going through multiple office rounds and tiresome documentation processes. Unaware about your credit score check CIBIL Score for free only at Finserv MARKETS.

 Types of Instant Business Loan Online

An instant business loan can be used for various purposes depending on your business and what you intend to do with the loan amount sanctioned for your business. Hence there could be a variety of uses that one could put money to use. Here are the types of a loan under which you can acquire an Instant loan for business.

1. Working Capital Loan

A working capital loan is used for the day to day expenses of the business so one does not have to worry about liquidity and can concentrate solely on the business. It is one of the major loans taken for SMEs and MSMEs.

2. Term Loan

Being a business owner if you're looking to expand your business or branch out in different locations you can opt for a term loan. These loans are best for business expansion and hence are for longer periods of time with larger sums of money. A term loan would usually be for 3 to 5 years to balance out the interest and principal on loan payments.

3. Top-Up Loan

You can apply for a Top-up loan to get an additional amount on your existing loan during the repayment tenure based on your loan eligibility. You can avail the maximum loan amount based on your business loan eligibility.

4. Machinery Loan

If you want to purchase heavy machinery or new technology for your business, you can opt for a machinery loan. Being one of the most important kind of loan for business, a machinery loan is processed instantly.

5. Invoice Financing

Invoice Financing can be availed by the businesses that deal heavily on a credit basis but requires liquidity on a day to day basis. When a third party, usually the lender takes on the invoices of the borrower and pay cash to the borrower immediately, giving the borrower enough liquidity. It is then upon the lender to ensure the credits from the invoices have been collected. This is a famous type of loan taken by many business owners who rely on credit notes for their business.

Instant Business Loan Documents Required

The following are the list of documents required for business loan

  • Identity Proof- Personal KYC, PAN Card, Aadhar Card

  • Residential Address Proof -Rent Agreement, Driving License, Voter ID, Ration Card, Passport

  • Last 6 months Current Account Bank Statement

  • GST Registration Certificate

  • Shops and Establishment Certificate

Instant Business Loan Eligibility Criteria

To be able to avail a loan with ease you need to fulfill the eligibility criteria only then you are eligible for a loan for your business.

  • You must be a citizen of India to be eligible for a loan.

  • You must be a self-employed individual.

  • Self-employed individuals between 26 - 66 years are eligible and can apply for a Loan.

  • Your business must be of at least 3 years.

Benefits of Instant Business Loan

  1. Accessible and Convenient

Lenders offer different loan repayment options. Some banks and financial institutions provide a customized repayment plan as per the business cash flows to avoid facing financial difficulties while servicing the loan. Monthly installment can be lower or increased by owners as per the profitability or choose a bullet payment option to repay the loan amount.

  1. Flexibility

Business owners have numerous options available for loans based on their current requirements. An overdraft facility whereby borrowers may overdraw the current accounts as per the agreed terms and conditions. The flexibility makes it easier for borrowers to avail a loan for the business facility.

  1. No Collateral Required

When getting a loan for business, you are not required to pledge any collateral to avail of the loan. For a small business start-up, these loans can help you meet your business requirements and grow your business.

  1. Loan Tenure

Business loans are unsecured loans this means it is given for a shorter period. Generally, the loan tenure for a this loan is between 12 months to 60 months. You can choose between short term and long term loans based on your business requirements. Also check what are the benefits of a business loan and how you can avail one.

  1. Competitive Interest Rates

Most banks, NBFCs and other lending companies offer loans for business at competitive interest rates. These loans can be availed by small and medium businesses in India at attractive interest rates, nominal processing fees, with absolutely no hidden charges. The interest rate loan depends upon your business, the loan amount you have applied for and your past relationship with the bank. Currently, the rate of interest on loan starts at 13.50%. Most banks charge a minimum processing fee of 2% to 3% on business loans.

By getting a loan at Finserv MARKETS, you can get the finance you need to purchase equipment for your business. Business loan available at Finserv MARKETS comes at attractive interest rates. These loans can be used for undertaking various business operations, such as an expansion of your business, acquisition of other companies, buying high-value and getting new machinery or equipment, etc. Also know what the business loan schemes for women available in India and how you can avail it.

Bajaj Finserv Business Loans are collateral-free, which means you do not have to pledge your personal or business assets on the line to get the finance for your business. You can simply apply for a loan online and get pre-approved offers for an instant loan without security from Finserv MARKETS.

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