Apply for Business Loan
About Business Loan
Businesses need ample amount of investment to fund for start-up expenditures or pay for business extensions. For such purposes, companies take out business loans for their financial assistance. It is a debt which a company is obligated to pay back within a specific tenure according to the terms and conditions of the granted loan. Start-up Business loans can be taken for a variety of essential requirements like starting up a new firm, business expansions, dealer and vendor financing etc.
The major benefit of business loans in India is that it does not require any collateral or security and most of the banks sanction business loans with minimal pre-payment charges. Another benefit is that if there is a failure of repaying the loan, then the business owner will not solely face the burden of penalties but the whole company will be liquidated in order to clear the business loan.
Features of Business Loan
Business Loan is a great option when it comes to expanding your existing Business or starting something new of your own. There are some salient features of Business Loan which you should know before applying for one, which includes the following -
- Collateral Free Loan
Business Loans are unsecured loans which mean that no security or collateral is required to apply for a Business Loan. One does not need to provide any asset like a car or a house to avail a Business Loan. The financial lenders review the Loan Applicantâ€™s credit history, age, location, income details of the past few years and only then the loans are offered.
- Fixed Interest Rate
Business Loan Interest Rates are fixed, which means the Interest Rate will not change for the entire Loan Tenure. The Interest Rate of Business Loan starts from 14.99% onwards.
- Flexible Repayment tenure
The Loan Applicants can get a flexible repayment tenure up to 5 years, making it more preferable over other Loans.
- Loan Amount
The loan amount that one can avail in business loan can be up to Rs 50 Lakh. It mostly depends on the financial credibility of the borrower before offering the business loan.
- Minimal Paperwork and Fast Processing
Since loans can be easily applied online, it requires minimal paperwork. Only the necessary documents are required to apply for a business loan. Once the loan application is approved, the processing of the loan amount is followed by the disbursal.