Need Business Loan? Know Why A Business Loan Is A Safe Bet
Raj Kangane was born in a family of engineers and doctors from Nashik. But these degrees were not enticing enough for him. He was different. When the other boys of his age would play cricket, he would sit and read ‘Rich Dad Poor Dad’. He started dreaming of being an entrepreneur at a young age. At 25, he finally decided to start his own business of consultancy. And after 5 years, he decided to expand his business.
The young entrepreneur did not lack enthusiasm. What he lacked were funds to turn his dream into reality. Raj considered taking a loan for his business. But, he had several questions in mind. He did not want to make a risky decision. He decided to come over his apprehensions with an extensive research. He took a business loan after reading about them.
Also Read : Advantages Of Availing A Business Loan
Here’s what helped Raj decide:
Why is Business Loan a Good Option?
There are different types of business loans available. You can either take a secured loan or an unsecured loan. A secured loan is taken against an asset. For example, you take a loan against your property. If in case you fail to repay your loan, your lender can seize your property.
On the other hand, unsecured loans have no such requirements. Many lenders offer unsecured business loans. You do not have to worry about building up your collateral. If in case you have problems repaying your loan, you at least do not worry about your asset’s possession. But, it might affect your credit score.
Save for Emergencies
It is quite relieving to know that your finances are in order. When you have extra money, you can think about investing and growing them. Such funds become your savior during emergencies. If you use this money to fund your business, you could be left without a financial aid in times of need. Thus, business loans become good alternative sources of funds.
The business world is competitive. Late movers are bound to collapse. Planning and execution of business must be done carefully. It is imperative to invest time and effort at this stage. However, funding of such business plans should be quick. Obtaining a business loan is a quick process.
Many lenders offer instant approvals. Usually, your money gets credited to your account within 72 hours.
Ease and Convenience
You sure can go to the lender’s branch and apply for a business loan. But, you can also do this online. The latter offers convenience to you. Your loan is just a few clicks away. You need to put in a lot of efforts to shape your business. Online facilities spare you the time and effort. Also, to help you, many lenders have online customer portals.
Such platforms make the entire borrowing process hassle-free.
Each business has a separate set of requirements. You can choose from a wide range of loans. For example, there are special business loans for self-employed professionals like doctors and engineers. Self-employed non-professionals such as traders and manufacturers can avail a separate loan. You can get a loan that matches your business needs the best.
Flexibility can also be seen in terms of repayments. Usually, lenders let you choose your repayment schedule. You can also get different EMI options to choose from. Also, you can foreclose or prepay your loan with minimum or no charges.
Comparing becomes essential whenever you buy or borrow. When you compare, you find out about the rates prevalent in the market. You also know about the offers of different lenders. There are various lenders offering loans at attractively low rates. You pay a processing fee to avail such loans.
How to Apply for a Business Loan?
Applying for a loan is an easy process. You can go to the lender’s branch and fill up a physical form. Alternatively, you can apply for a business loan online. For this, you can log into the lender’s website. Fill your personal details such as name, address, Aadhaar number, PAN, etc. You may also be required to submit your business details.
Once your form is complete, you might have to pay a small processing fee. You can make such payments online. You can then submit your documents. Your loan gets credited to your account within a reasonable time.
Raj is a successful entrepreneur now. A business loan helped him turn his dream into reality. Such loans are affordable. They also offer flexibility and convenience. And, borrowing is a simple and an easy process.