Sometimes small businesses might require additional financing for smooth business operations. To raise short term financing for your business, you can apply for an unsecured business loan. The best part about this loan is that you are not required to pledge any valuable assets as collateral with the lender. Moreover, most small businesses lack adequate collateral assets, the absence of this requirement makes these small business loans a preferred choice for MSMEs. Also, there are numerous banks and financial institutions that offer quick financing in the form of an unsecured loan to MSMEs. For example, applying for a Bajaj Finserv business loan online at Finserv MARKETS can avail a high loan amount of up to Rs. 30 lakhs, the loan funds can be availed with minimal paperwork and instant disbursal of the loan in your bank account. Let's have a look at some of the ways a business loan can help your business in 2021
Operational stability is one of the most important aspects of running a successful business. With a small business loan, you can purchase raw materials, finished goods or maintain an inventory that you require for smooth operations. A small business loan helps in working capital requirements like clearing all your pending bills and any unexpected operational costs that need to be taken care of.
Being an unsecured type of loan the loan does not require security and You can easily avail a high loan amount for your business to fit your business requirement. The loan funds can be used for buying new equipment or machinery or property for your business, business expansion, etc.
The lenders for an unsecured loan for business do not impose restrictions on the usage of the loan. The loan funds can be used to carry out a wide variety of business activities, this makes it excellent for boosting your working capital requirement, investments and other marketing activities.
One of the major perks of getting a loan for business is the flexible repayment facility. This makes it easier for a business owner to repay the loan in EMIs based on the loan agreement. Easy and flexible repayment options offered by various Banks and NBFCs (non-banking financial institutions) makes the loan reimbursement a bit more acceptable.
Getting a loan for business is a great way to finance various business needs, the interest rate on a loan for business depends upon your business, the loan amount you have applied for and your past relationship with the bank. Currently, the business loan interest rate starts at 13.50%. With the help of a loan calculator, you can get an estimate of the monthly instalments that are to be paid every month towards your loan thereby helping you plan your repayment with ease.
The following are the business loan eligibility criteria
● Self-employed professionals include doctors, chartered accountants etc and self-employed non-professionals include traders, manufacturers are eligible for the loan. ● The applicant must be between the ages of 25-65 years. ● Business units such as partnerships, limited liability partnerships, private limited companies are all eligible for a loan. ● Must have a minimum business experience of 3 years in the current business and overall business experience of at least 5 years’ ● The minimum Annual Income (ITR) must be Rs.1.5 Lakhs per annum.
Given below are the list of documents required to apply for a loan for business
● Identity Proof: Aadhaar Card/ PAN Card/Passport/Driving license/Voter ID Card ● Address Proof: Aadhaar Card/Passport/Driving license/Voter ID Card/Utility Bills ● Bank statement of last 6 months ● Sole Proprietorship Declaration form or an authenticated copy of the Partnership Deed ● Certified copy of Memorandum and Articles of Association ● ITR (Income Tax Return) form in addition with certified copies of income computation, balance sheet, Profit and Loss statement for the last 2 years
Availing a loan for business is a feasible option for further growth and expansion of a business. However, before you make a final decision it is necessary to assess your business requirements and avail a loan accordingly. Bajaj Finserv Business Loan at Finserv MARKETS are collateral-free by getting a loan at Finserv MARKETS you can get the financing you require to purchase equipment for your business. Finserv MARKETS offers loans at attractive interest rates for undertaking various business operations with ease. The online loan application process and loan disbursement process is quicker and the loan amount gets credited directly in your bank account within a few working days after approval.
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