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What is Long Term Business Loan

Businesses take long-term business loans to cover their immediate business-related expenses or to fund their expansion plans. Such loans are typically paid off by the borrowing businesses over many years. The main reason why businesses go for such a loan is because after getting one, they will have to pay a lower amount as Equated Monthly Instalments (EMIs) to repay it.

Features and Benefits of Long Term Business Loans

There are several benefits of availing a long term business loan.

  1. Flexi Loan Facility: With long-term business finance options, entrepreneurs can avail a large amount which can be withdrawn as per their needs. The Flexi loan facility allows borrowers to repay only the interest component of the loan as EMI, which makes it much easier to use the loan for profitability.

  2. Flexible Repayment Tenure: A long-term business loan offers flexible repayment tenures lasting up to several years. This lets businesses easily invest capital towards future benefits without worrying about repaying their loan in a hurry. If you avail of a business loan on Finserv MARKETS, you can repay it flexibly with a repayment tenure lasting up to 60 months.

  3. No Collateral: With long-term business finance options, no collateral needs to be provided to avail the loan. This is an especial relief since entrepreneurs need to leverage all their assets towards making their business profitable and can’t afford to lock any asset away as collateral.

  4. Online Access: With digitalisation taking over the entire world, long-term business finance lenders have also moved operations online. Borrowers can now easily avail of loans with only a few clicks and by uploading their documents online in a convenient and hassle-free manner. Additionally, it has become easier for borrowers to keep track of their pending repayment amount since all information is centralised on a dedicated portal.

Eligibility for Long Term Business Loan

Despite the convenience on offer, lenders set up certain eligibility criteria that borrowers must fulfil to avail of the loan. Read on to learn the eligibility criteria for availing a business loan on Finserv MARKETS.

  • The applicant must be between the age of 26 to 66 years.

  • The business must be at least three years old.

  • Income Tax returns must be filed for the business for at least the previous year.

  • The previous year’s business turnover must have been audited by a Chartered Accountant.

Long Term Business Loan Interest Rates and Charges

The interest rates and charges that will be applicable on a long-term business loan are:

Interest rate

18% per annum onwards

Processing fees

Up to 2% of the loan amount

Penal interest rate

Up to 2% per month

How to Apply for Long-Term Business Loans

Previously, entrepreneurs looking to avail business loans had to fill out numerous applications, provide a range of documents, and even wait several months before the application itself could be processed. Recently, with portals like Finserv MARKETS, digitalisation has made processes much simpler and much more convenient for those in search of long-term business finance.

To apply for a business loan on Finserv MARKETS, all you must do is fill out a simple, to-the-point application form. You will be asked to specify how much you wish to borrow and a repayment tenure that works best for you in the form. You can easily choose a long repayment tenure of up to 60 months and ensure maximum flexibility for repayment.

Additionally, you will be required to upload soft copies of the required documents.

Once these details have been provided and if the information, once validated, is in order, the loan will be approved in just 2 minutes, and the loan amount can be disbursed to your bank account within 24 hours.

With such easy long-term business finance options available to entrepreneurs now, it won’t be long before India emerges as a hub of successful ventures and a market for all kinds of great products.

Documents Required for Long-Term Business Loans

To avail a long-term business loan, you will need:

  • A copy of your business plan

  • A duly-filed copy of your application form along with passport-sized photographs

  • Proof of your identity, age, and business income

  • Business address and vintage proof

  • Business PAN card along with copies of the relevant registrations, permits, and licences

  • Bank statements of your business going back 12 months along with your Profit and Loss (P&L) statements

  • A copy of your Memorandum of Association (MoA) and Articles of Association (AoA)

  • Any other document as per the lender’s requirements