As the global economy struggles to maintain a healthy growth rate, India’s GDP continues to outshine major world economies. According to the Global Economy Watch report from PwC, the nation’s GDP growth is likely to stand at 7.6% in 2019.
Here, two of the most dynamic contributors with high potential are SMEs and MSMEs. A quick, affordable and easy-to-access business loan is, therefore, essential to further strengthen this sector.
Reputed lending organisations make business loans more convenient with their exclusive offers. As a borrower, this funding option can be the right choice for its several features and benefits.
Advantages of business loans
- Financing up to a higher value
Reputed lenders nowadays offer to finance up to Rs. 30 Lakh so that borrowers address their requirements adequately. Such a high amount of business loans can help implement big projects successfully.
You can avail a business loan without any collateral or guarantor by fulfilling some eligibility criteria.
- Affordable rate of interest
With NBFCs in India, you can enjoy competitive business loan interest rates bringing down the total cost significantly. They also impose nominal processing charges and associated fees under a transparent policy. Pay what you see and save more on your loan with the best lenders.
- Increased flexibility
Nowadays, borrowers can enjoy maximum flexibility on credit. Lenders provide various types of business loans customised for diverse purposes. You can apply for the most appropriate type depending on your requirement. Additionally, assess your repayment capability and choose a convenient tenor accordingly.
- Easy application process
Eligible borrowers can apply for these unsecured loans online in minimum time. Approach renowned lenders such as Bajaj Finserv who offer a simple application form. Fill it up and submit online along with the basic documents.
You can further look for pre-approved offers on business loans which make the application process less complicated and more time-saving. Pre-approved offers are available on a range of financial products, including business loans, personal loans, home loans, etc.
Besides, availing a business loan makes you eligible for tax benefits too under the IT Act of India. You can check out some tax-saving tips for small business owners. While you can enjoy all these benefits once availed, deciding if the loan is the right choice for you is first essential.
Points to evaluate the Business loan’s suitability
Taking the loan shall prove to be beneficial under the following conditions –
- The certainty of the purpose
Unsecured business loans come with zero end-usage restrictions and can be utilised for a variety of reasons. Make sure you know your purpose clearly so that the funds are not misused. Unplanned utilisation of loan can lead to pilling debts and financial mess. Meet the necessary eligibility parameters and apply for only the required amount.
- Fulfilment of eligibility criteria
Being unsecured by nature, these loans are sanctioned based on certain eligibility parameters. Every applicant must fulfil all those criteria to qualify for their required loan amount.
- Repayment plan
It is imperative to make a proper repayment plan before applying for an unsecured loan. As lenders offer flexibility to choose the tenor, you can check suitable EMIs with different tenors using an online business loan EMI calculator. Select a repayment schedule as per the most suitable option and avoid any chances of default.
Business loans can keep your company financially healthy in various ways. Whether small or large, the advance can aid in maintaining smooth business operations, opening a new branch, investing in advanced equipment, etc.
One of the significant benefits is to strengthen the working capital during difficult economic times. Besides the operating cash flow, you can utilise this fund to cover unplanned expenses in the business effortlessly. What further makes it an appropriate choice is that business loan interest rates are comparatively lower now. However, understanding the terms and policies before entering any agreement is crucial to prevent any negative consequences. Assess your needs and partner with a trustworthy lender who offers business loans at the best rate in the market.