Every business enterprise requires some finance either for its establishment, or expansion, or normal day-to-day operations. Irrespective of the size, there is a necessity of having an adequate amount of funds for the business's smooth functioning. So, owners/entrepreneurs look for financing options which they can avail themselves of at reasonable terms and conditions and fulfill their business requirements. In such cases, a business loan is the best financing option that they can avail of. Many big banks and financial institutions offer business loan at quite attractive terms and conditions to the interested customers. The customers can apply for business loan after considering various necessary factors.
What is a business loan?
A business loan is a type of unsecured loan that banks or financial institutions grant to business owners or enterprises so that they can meet the day-to-day business requirements. The borrowers are not supposed to pledge any asset as collateral security as it is an unsecured type.
The borrower can utilize these funds for purposes like business expansion, purchase of machinery or equipment, purchase of inventory/ raw material and to manage cash flows, etc. This loan has no minimum limit criteria for the borrower; the customer can avail of the loan up to Rs 1 crore with flexible repayment options.
What are the features or advantages of availing of the business loan?
The following are some of the interesting features of business loan which are quite beneficial for interested customers:
- Collateral free loan- The business loan is a type of unsecured loan, which means that banks or financial institutions offer loans without asking customers to pledge an asset as collateral security. The banks or financial institutions do ask for profit and loss statements, balance sheets, and other essential documents before granting the business loan.
- Fixed-rate of interest- The banks or financial institutions charge a fixed rate of interest from their customers for business loans throughout their tenure. The rate usually ranges from 13.50% to 33.50%.
- Maximum loan amount- The customer can avail of a loan amount of Rs. 1 crore provided they must possess a good credit score for the same.
- Flexible repayment options- The repayment option under the business loan is flexible and can be customized, which means that the customer can choose its repayment schedule.
- Meeting business purposes- The customer can use the business loan money to meet the capital requirement of a new business or expand its existing business. The money can be put to use for a new product's introduction, new market avenue, etc.
Eligibility criteria for the application of business loan-
The interested customer must fulfill the following criteria to become eligible for the business loan:
- He must lie in the age group of 25 to 65 years.
- The applicant must be a sole proprietor or run a partnership firm, private limited company/ trust/ LLP. He must be in the business of manufacturing, trading, or services.
- He should be in business for at least 3 years.
- The business turnover should be at least Rs 1 crore, and the business must generate profit for a minimum of 1 year.
Required documents for the application of business loan-
- Identity proof
- Address proof
- Firm constitution i.e., Partnership deed/ MOA/ GST registration certificate
- Establishment certificate or tax registration, i.e., VAT/GST/Service tax registrations.
Why should we apply for a business loan online?
Applying for a business loan online can save a lot of effort, time, and costs. Customers can apply for a business loan through Aapka Bank. The online business loan application has the following benefits:
- Easy comparison for rates and terms- While applying for a business loan online, the applicant gets an opportunity to check the terms and conditions, interest rates, and tenure related information of various banks and financial institutions. He can select a lender who is offering business loans at reasonable terms and rates of interest.
- Accessibility to necessary information- While applying for the loan online, the customer gets to have vital information about a business loan like eligibility and documents required, etc. such information is really helpful for the applying customers.
- Minimum documentation- In the online application, the customer can apply for a business loan with minimum documentation. The online application involves quick approval and disbursal, which further helps in saving the time, cost, and efforts of the applicant.
- Easy of tracking the business loan processing- With the online application, the customer gets easy to track all the essentials of a business loan. The customer can track transactions, EMIs due date, and other important details.
Why choose Aapka Bank for online application of business loan?
Aapka Bank is a leading financial service provider that offers various financial products of reputed banks and financial institutions to its customers. We at Aapka Bank provide financial services like personal loans, home loans, business loans, and education loans, etc. Our financial services are known for the following good features:
- We provide our financial services in real quick time with the assurance of 100% customer satisfaction.
- We offer the best deals on various financial solutions for reputed banks and financial institutions.
- We also offer a reasonable rate of interest on our various financial products.
- Our loan processing includes quick approval and disbursal.
How to apply for a business loan at Aapka Bank?
The customer must follow the following steps to apply for a business loan through Aapka Bank:
- The interested customer must visit our site Aapka Bank.
- Select a business loan and fill in the required information.
- After filling in necessary asked information like loan amount, nature of employment, etc., the customer will be asked to provide details about earlier taken loans and credit card details, etc.
- Later the applicant has to tap on proceed, and he will have the best business loan offer of various banks or financial institutions.
- Finally, the customer can select the one that is most considerable to him and proceed with that accordingly.
The interested applicants who want to avail of the business loan for meeting business requirements must apply the same through Aapka Bank as we are one of the best business loan providers in India.