- To qualify for Business Loan, you must simply have 3yrs IT returns , KYC and a business vintage of minimum 5 years.
BUSINESS LOAN
Loan given to self-employed, professionals or company without any collateral security is called a business loan.
The sanction of business loan is based largely on the creditworthiness of the borrower and the firm. The bank or the financial institutions will first take a look at your firm’s financials and your credit score and analyze your credit rating before offering loan. They will also look at your financial statements for the past 3 years, bank statements, Nature of business, its current and expected returns and the market trend.
The loan amount could be from Rs. 1 lac to Rs 75 lac and the tenure would be between 1 to 5 years.
At Financebay, we are the experts in helping you avail the best business loan with customer friendly terms.
Businesses need money for several reasons, right from working capital needs to expansion plans to opening up a new branch or for innovation in the existing business.
F.A.Q
Can I get a Business Loan to start a new venture ?
Do I have to visit a physical branch to apply for a Bank Business Loan?
- No you can apply online ,contact your loan officer at FinanceBay , we will do just in few simple steps . We we’ll do whatever we can help you to grow your business with ease .
Do I need to pledge assets to apply for a Small Business Loan?
- Not at all ! Business Loan is an unsecured offering. You only need to meet the simple Business Loan eligibility criteria to qualify for business financing.
Why get a business loan?
- Business Loan is a financial aid provided by banks and NBFCs to attain the funds for expansion or to meet the expenses of the business. What makes Business loan special is that it’s a unsecured loan and you can use it for any purpose of your business either to use it as your working capital or just to possess a new asset or meeting short term cash flow requirements.
What is the tenure for business loan ?
- Generally banks and NBFC provide tenure up to 7yrs.
Is pre closure allowed in Business loans ?
- Some banks have a lock-in of 6 months to a year while some banks allow you to pre close even after the 1st EMI has been debited from your bank. There may also be restrictions that you can only use your own funds (and not the balance transfer cheque of another bank) to pre close a loan. In addition, banks may allow pre closure at no cost or may levy a pre closure fee (2-5% of the amount being pre-closed). Please ask for clarifications from FinanceBay loan advisor on all these factors before signing the loan documents.
Is part payment allowed in Business loans ?
- Some NBFC like Bajaj Finserv allow part payment. However, there can be restriction on how many times in a year you can part pay and the minimum and maximum amount that you part pay. Again, please ask for clarifications from FinanceBay loan advisor on all these factors before signing the loan document.
What is the minimum and maximum loan amount offered for business loan ?
- Generally, the minimum amount loan amount is Rs 100,000 and maximum amount is Rs 50,00,000. Higher loan amounts are dependent on your income , bank transcation and a personal discussion that a bank may want to have with the borrower and then take a call on the loan amount.
How many days it take to disburse the Business loan ?
- FinanceBay team will work with the banks and try to get you the loan disbursed within 4-6 working days after submitting completed documents.
What is rate of interest and processing fees on Business loan ?
- Rate of interest varies from 16 to 24% and processing fees of up to 2.5% of loan amount depend upon case to case basis . In addition some banks and NBFC insist on insurance cover also.