Generally, two sources of funds can be used for meeting any kind of financial requirements of a business. External and internal sources of funds – external sources of funds include a loan from banks, NBFCs (Non-Banking Financial Companies), and other government entities whereas internal sources of funds include any profits generated by the business. There is a constant requirement for funds to meet various business needs. The dynamic nature of business pushes entrepreneurs to relentlessly focus on revenues, profitability, and cash flow generation. The requirement of funding a business has been greatly addressed with the advent of easy Business Loans. Further, the introduction of online Business Loans has brought convenience in applying for a Business Loan from anywhere and at any time. If you need a Business Loan, you can just visit the lender’s official website and apply online.
Features of a Business Loan
A modern-day Business Loan is offered with attractive features by various lenders present in the market. The below-mentioned features make it an attractive choice for borrowers to opt for a Business Loan.
- Higher loan amount: Depending on your business requirement and the nature of the business, the loan amount may vary. Once you meet the eligibility criteria set by the lender, you can ask for the desired loan amount with a lower rate of interest. Also, there are many lenders present in the market, you can compare all the lenders and select the one that suits all your requirements.
- Collateral-Free Business Loan: A collateral-free Business Loan allows business owners to avail of a loan without pledging any asset as security. This is helpful for first-time borrowers and borrowers who do not possess any assets.
- Online process: Today, the entire loan process is streamlined online, you can provide the loan application online and once the application is verified, your loan amount is disbursed directly to your bank account.
- Documentation process: As there is no collateral required, the entire documentation process is simplified and faster. You can submit the required documents online at your convenience. As there is no collateral requirement, the overall documentation process is reduced.
How to apply for a Business Loan?
Today, it is easier to apply for a Business Loan. Previously, borrowers were struggling to apply for a Business Loan as the majority of processes were offline. With time, and the introduction of digitalization, applying for a Business Loan is simpler and faster than ever. You can apply for a Business Loan online by following the below steps:
- Visit the official website of the lender.
- Check for the Business Loan section.
- Fill out the Business Loan application form and click on the ‘Apply Now’ button.
- Your loan application will be assessed and verified.
- Once the verification is completed successfully, your loan amount will be disbursed directly to the bank account.
Business Loan Eligibility Criteria
Business Loan eligibility criteria are the minimum requirements that a borrower has to meet to apply for a Business Loan. Below is the list of requirements that you must adhere to:
- Age: You should be between the age of 24 and 65 years
- Annual turnover: Your business should have a minimum annual turnover of ₹6 Lakh.
- Business vintage: At least 2 years of the business vintage is required.
Please note that these requirements may change as per the lender.
Documents required for Business Loan
The documentation process is an important part of a Business Loan application. As a borrower, you need to submit all the required documents to complete the overall loan application. Below is the list of the documents that you need to submit to the lender:
- KYC (Know Your Customer) documents like the Aadhaar/PAN Card of the company and key person(s).
- Current address proof (Passport/Utility bills/Rent Agreement)
- Bank statements from the last 3 months
- Business registration proof and business address proof
Please note that these document requirements may change from lender to lender.
Today, if you need a Business Loan, you can directly visit the lender’s website and apply for a Business Loan. There are diverse types of Business Loans that a lender offers such as Business Loans for SMEs (Small and Medium Enterprises), Business Loans for women, Business Loans for Machinery, etc. Before applying for a Business Loan, you must check all the requirements and apply according. This will help you build a strong loan application and will have lesser chances of loan rejection.