All You Need to Know About Business Loans
A business loan is a loan without security that gives your enterprise access to credit, which can be paid back over an agreed period of time along with interest. Small or new enterprises that are just getting starting on their journey and still finding their feet typically find it difficult to get a business loan as they may not have strong financials. Every new business is looked at with a magnifying glass by banks and financial institutions, as they believe new businesses have a higher chance of failing. However, there are many lenders like Bajaj Finserv who strive to make this process simpler and more straightforward. Here is how you too can get one to expand your business.
When Does Your Business Need a Small Business Loan?
A small business is always looking for additional cash, whether it is to fund growth by entering new markets, get a bigger space for employees or manufacturing, get a better deal on raw materials by getting the cash advance discount, or for increasing the SKUs in their inventory. The right amount of funds at the right time also helps better the cash flow and a cash-strong business can provide longer credit to buyers, which can help in funnelling growth and expansion. Whatever your reasons for needing a business loan, getting one can certainly help you in advancing your business.
How to Apply For A Business Loan?
These days, applying for a business loan is easy and can be done online without waiting in long or complicated queues. If you choose Bajaj Finserv as your lender for the business loan, simply log on to www.bajajfinserv.in, select the ‘Business Loans’ tab under ‘Our Products’ and select the ‘Apply Now’ button. This will guide you to an online application form. Fill it out, and you’re done. Once the lender checks your application form and the needed documents, you will get approval soon—sometimes even within minutes!
Documents Required for a Business Loan
- Application form: This is available online, and is easy to fill and submit.
- Photograph of the applicant and co-applicant (if any)
- Details of Income: This includes the following –
- Income Tax returns for the last 2 financial years
- Business Balance Sheet for the last 2 years with annexure
- Business Profit & Loss account for the last 2 years with annexure
- Form 16A for the last 2 years
- Business bank account statement for the last 3 months
- KYC [Know Your Customer] documents of the applicant and the co-applicant (if any). KYC may include scan copies of ID proof, address proof and PAN card.
- Details of business vintage for 5 years
- In case of a practicing professional, a certificate of practice is also required.
Small business loan repayment options
As a borrower, you can sometimes choose your repayment options based on your convenience. At Bajaj Finserv, the loan amount for a business loan goes up to Rs 30 lakh, and the repayment options are based on the requirements of the business with repayment tenures running from 12 months to 48 months.
Advantages of Getting a Business Loan from Bajaj Finserv
The unique advantages Bajaj Finserv provides with their business loans are:
Flexi Loans that give you all the convenience you need
Bajaj Finserv offers a Flexi Loan option where you have the option of repaying and withdrawing money from your loan account as per your business needs. Further, interest is only charged on the portion of the loan that is withdrawn rather than on the whole amount to save you from paying more interest needlessly. With easy online access, you can get the funds transferred into the business account without any complicated procedures or delay. When it comes to prepayment or part payment of your loan, you can do this easily with flexi loans as well without worrying about fees or charges being added to your account.
No collateral to make the application process stress-free
Collateral is the way by which the lender secures his loan (mostly by way of property or assets), and most lenders seize the collateral when the borrower defaults on the repayment. Bajaj Finserv doesn’t require you to furnish any collateral, giving your small business a chance to grow and succeed.
No guarantees required to give your business a chance to grow
A guarantor is a person who becomes liable in case the debt obligation is not met by the borrower. At Bajaj Finserv, a business loan can easily be taken without furnishing any guarantee.
With the highest unsecured loan amount by any loan provider in India in this segment, Bajaj Finserv’s business loan may well be the opportunity your business needs to grow and flourish.