Business Loan is taken to finance or refinance your business fund requirements. You need additional funds as loan in urgent business requirement. So, It is important that you get the loan quickly and easily.
Keeping all the facts in mind, you must consider the points discussed below before you apply for a business loan.
Business Loan-Why you need it?
Ask yourself first, why you need it. The logic behind this will give answer your all queries, like how much loan you need. How will spend this money wisely and repayment options. Hence you reach to a more specific point that these are the reasons for which you have to take the loan.
Your answers may be any of the below:
- To start a new business
- To grow or expand your business
- To meet your day-to-day expenses
- Any urgent fund crisis
Now comes the second part, DO you really need it? If the loan is not taken then what? Find the answers to these questions. You will see that if the loan is actually needed then you will give logical responses. Now note down all the points for why you need it and move on to the next part.
Which type of Business Loan do you need?
There are various types of business loan available in the loan market. What is your loan requirement this is of prime importance. You need to assess your requirements with a cool head. Prioritize all the need of fund in ascending order and calculate the total fund you actually need.
If this the first year of your business then then getting a business loan is a hard nut to crack. Lenders will not fund you until you have submitted IT Returns and maintained a profitable business more than 2-3 years at least. In this situation you should look for Mudra Loan . This will give you loan amount maximum upto 10 Lakh depending upon the nature of your startup business.
If your business is 2-3 year old and all your eligibility criteria to get a business loan is met then you will get the business loan from lenders. You may opt for short term business loans, Over Draft Loans, Loan against property or other similar loans. We have discussed in detail about All details you want to know about Business Loan
Are you eligible to get the business loan?
Before you rush to apply for the business loan, check your eligibility. Like:
- Your credit score or CIBIL score
- Your Income strength
- Any Collateral for safe keeping
- Nature of Business
- Repayment capacity
Considering these points, lenders or banks give you the approval of loan amount as per your eligibility limit.
Arrange your documents for loan application
Now you are all set to apply for the loan. Arrange the documents as mentioned below:
- Proof of business and personal tax returns
- Bank Statement of business and personal
- Financial audited statement
- Legal documents of your business (Like MoA, Registration Certificate, Certificate of Incorporation, GST details, TAN, PAN, CIN etc)
- Company/Organisation profile
Check the lenders and compare the best loan offers. Make a wise decision and apply for a quick and easy loan disbursal process. It hardly takes 5-6 days to complete all the formalities when all the documents are lined up. If you face any challenge in loan process, approach our loan experts through contact us page, we will assist you and resolve your queries.