Working Capital and cashflows are the life lifeline of any successful organization. Almost all the businesses need a significant amount of working capital to enable the sustainable growth. Apart from that any expansion or scaling up always require additional finances.
To fulfill the requirement of additional finances, we ensure business loan for our clients that can help them to take the business into the next level. Business loans are very attractive for small business since the processing time is normally 4-5 working days. We always help our clients with this products so that they can scale to new heights of success.
Business loan is given based on business entity’s (non-individual) credentials and normally Business Loan is given to the business entity only.
Business loans are categorized into two types
- 1. Unsecured business loans (without any collateral security)– A simple term loan granted to proprietorship, partnership, private limited and limited companies based on the financials and bank statement. It’s a collateral free loan and the loan tenor is limited to 4 years.
- Secured business loans – This is a form of Working capital finance in rupees as well as foreign currency for proprietorship, partnership, private limited companies and limited companies. This type of loan is granted for the day to day operation for the enterprises.
Business Loan Eligibility Criteria
Most of the Banks and NBFCs have a common set of parameters for evaluation of loan applications. However, each lenders has some special criteria for granting the loan.
Current Business Experience
Banks prefer that the sales is growing at least for the last 3 years. If any business shows sustained revenues with profit, getting a business loan becomes all the easier. Some lenders give a loan amount up to 60 to 80% of your average annual profits.
Total Business Experience
For unsecured Business Loans, banks prefer a sustainable business for at least 5 years to consider granting a loan. Experience in diversified businesses will help the borrower to avail unsecured business loan.
Pre-Payment of Loan
Business Loans can be prepaid after repaying of 6 installments. Foreclosure charges would be applicable as per the lender’s term and condition. Borrower can make a part pre-payment with a minimum amount of Rs.50,000 after 6 months from the date of disbursement of the loan. This part pre-payment can be made only once in a financial year or as per the sanctioned terms.