Loans are a convenient means to develop the business and protect it during lean times. However, when you bring out the debt you are obliged to provide certain payment conditions that might negatively affect your business if you are not careful. Being a responsible recipient often starts before you always get to the financial institution for the debt. You may still be able to avoid taking out loans altogether if you can obtain better policies and discuss payment with each seller. If you do not have any kind of credit history, then it is important to make sure that your business has a good credit score.
This will help you in getting approved for loans from lenders and banks. Many lenders offer loans for businesses but they all require a lot of paperwork to get approved. So, you need to go through some basic steps before applying for a loan for business. Here are some of the things that you should keep in mind while applying for a loan for business.
Check the company's website, look at their website, check the reviews of other leaders and also ask them about their credit score, check if they have any kind of insurance policies or not, check whether they provide loans for businesses with a minimum amount.
HDFC Bank business growth loans are available on the basis of your income and expenses. If you are looking for a business loan then it is best to contact HDFC Bank. They will help you to get the right loan for your business. You can get up to 40 lakhs without any security. Loan amount up to 50 lakhs is also available for some specific places. Apart from business needs, they provide loans for your child's education to your home renovation. You can even transfer your existing loan balance to HDFC Banks with ease. The repayment period of the loan is generally 12 months to 48 months. To get the loan, your business turnover must be 40 lakhs and your business should have a minimum annual income of 1.5 lakhs. The age of the applicant should not be less than 21 years and more than 65 years. The rack interest rate range is a minimum of 11.90% and the maximum is 21.35%.
SBI offers businesses loans that fall under a drop-line overdraft facility designed for small and medium-sized businesses. You can avail of loan amounts of 10 lakhs to 25 lakhs based on current account balances. The repayment period is 60 months. SBI provides this loan by accumulating current assets. The average monthly of the borrower's account should be, minimum of 1 lakh throughout the past 12 months to be eligible for the loan. The location of the business should be the same for 5 years. The applicant should be the owner of the business location or they should have a legal tenant agreement with the location owner.
If you are looking for a loan with no security, you can definitely check out IDFC First Bank Business Loan. They also provide loans for startups and SMEs. These loans are very easy to apply for and can be availed at any time. The application process is simple and quick. The loan amount depends on what kind of business you have, your repayment capability, and your income. They have quick eligibility criteria of up to 50 lakhs. But you can get collateral-free funding up to 1 cr. also on an eligibility basis. The loan tenure is up to 48 months.
Check out more about IDFC First Bank Business Loan from here.
Citi has a good reputation in the banking industry. CitiBank presents a wide range of business loans for efficient capital management. Here, you can easily avail of various MSME Loan Products like capital Loans, Overdrafts, Short and future Loans, Import and Export Finance that are specially designed to satisfy all of your financing requirements and fuel your business growth. However, Citi Bank doesn't disclose the loan amount, rate of interest, and thus the tenure upfront on its website. You'll get to know that at the time of application processing. You'll get to know at the time of application processing. Also, there are loan pre-closure charges (2%) and renewal fees (2%) related to the commercial loan.
Axis Bank is known for its convenient services and facilities provided to its customers. You can avail a commercial loan of 50 lakhs easily without security. Your business would get eligible for the loan if it is a minimum of 3 years old and running. It must have a minimum of 30 lakhs of turnover. The previous indicative rates of the loan were between 10.75% to 21%.