The one thing common to all businesses is the need for funds. Whether you want to enter a new geographical market or buy the latest equipment for your manufacturing unit, you will need funds. The requirement of funds will be based on the stage your business is in. All businesses in the growth stage need funds to achieve their goals. If you do not get access to funds at this stage, it could hamper the business growth and put you in trouble. This is when you should consider an online business loan in India. There are several lenders in the industry who are keen and willing to offer loans to business owners. The loan terms are designed to make it easy and convenient for you to repay the loan in time.
Where can you use the loan amount?
The biggest advantage of a business loan is that you can use the funds for any purpose in the business. There are no restrictions regarding them and the lender will not ask you about it. As long as you use the funds to grow your business, the lender will not question you about the same. Hence, no matter the requirement, you can apply for a business loan and put the funds to good use.
What are the documents required for the loan
If you want to apply for an online business loan in India, you will need the below-mentioned documents:
- KYC of the partners,
- Partnership deed,
- Memorandum of association,
- Articles of association,
- Business registration documents,
- Address proof,
- Bank statements,
- Income statement and balance sheet,
- Projected income statement and balance sheet.
- Passport-sized photographs.
How to apply
There is a simple and hassle-free process to apply for a loan. Like any other loan, you need to first compare the different lenders in the industry and then choose one. It helps to understand the eligibility criteria of different lenders and the interest rates offered by them before you commit. A low-interest loan can make a lot of difference in the long term and will make it easy and convenient for you to repay it in time. However, do not just focus on the interest rate and understand all the terms of the loan.
Once you decide to make an application, read through the eligibility criteria and if you are eligible, you can make an online application from the comfort of your home. Simply fill the online application form and submit the above-mentioned documents. If you are applying for a secured loan and have to hypothecate an asset, you will need to provide additional documents of the asset. The lender will then hire a market valuer and estimate the market value of your property, based on which, the loan amount will be decided. If all the documents are in place, the lender will verify them and approve the loan in a few working days. You will have the funds in your account and you can then use them to grow your business.
The online business loan in India is the best step to take if you want to expand the business. It is one of the easiest forms of borrowing and has a high loan amount, making it ideal for your needs. When you apply for a loan, it is advisable to get an estimate of the amount of funds you will require. Take out time and decide on the exact amount you need.
If you apply for a lower amount or a higher amount, it will not serve the purpose. Additionally, remember to pay the dues on time. If you want to know the amount of EMI you will have to pay every month, simply use the EMI calculator on the website of the lender. It will ask you to provide the loan amount and tenure, based on which, the calculator will give an estimate within seconds. You can then plan the budget and make your money decisions around it. If you have a longer tenure, you will have lower EMIs and a shorter tenure will mean higher EMIs. Always make a decision keeping your income and expenses in mind and read the loan documents thoroughly to ensure that you are making the right borrowing decision.
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