Business Loan
In the fast-paced world of entrepreneurship, securing the Best Business Loan in India is a strategic move that can propel your ventures to unprecedented heights. Let’s delve into the intricacies of why these financial instruments are the cornerstone for sustainable business growth.
Required Documents for Business Loan
Common Documents
- Two photographs of each applicant & co-applicant
- Pan Card Copy each applicant & co-applicant
- The Aadhaar Card of each applicant & co-applicant
- Utility Bill of office and current residence (latest month) each applicant & co-applicant
Income Documents
- 3 years ITR, computation of income, P&L, Balance sheet, all annexure & schedule. List. (self & CA attested)
- Sales & Purchase Summary – last 3 years (till date)
- Dr. & Cr. List – last 3 years (till date)
- The last 12 months’ bank statement of the company and all the EMI reflections if any loans going on
- Sanction letter of all Loans & OD/CC (if any)
Additional Documents
- Pan card copy of Company
- MOA & AOA copy / Partnership Deed
- List of Directors/ Partners & Shareholders
- Business Proof (Shop & Establishment Certificate, VAT, Sales Tax, GST, Service Tax, IEC)
- GST Certificate of the Company
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Eligibility
- The applicant must meet the below eligibility criteria.
- Minimum age 21 years
- Maximum age 65 years
- Minimum income (annual) Rs. 4,00,000/-
- Minimum loan amount Rs. 100,000/-
- Maximum loan amount Rs. 2,00,00,000
- Minimum years of business existence 3 Years
- Minimum loan tenure 1 year
- Maximum loan tenure 5 year
The Dynamics of Business Loan
In the diverse financial landscape of India, understanding the dynamics of business loans is crucial. These loans come in various forms, tailored to meet the unique needs of different enterprises. From term loans to working capital loans, businesses can choose the financial tool that aligns seamlessly with their objectives.
Business Loans are offered in two types
1. Secured Loan
For a Secured Business loan, the borrower needs to pledge something as collateral or security against the loan amount taken. Be it raw material or finished products, land, or machinery, anything can be kept as collateral in agreement with the lending party. The borrower can also offer cash advance as collateral as it offers more liquidity and the loan can be availed at lower interest rates and flexible repayment options. Indexia Finance Business Loan
2. Unsecured Loan
In the case of unsecured business loans, there is no requirement for any collateral from the borrower. However, while availing of an unsecured business loan, the borrower needs to pay a high interest rate. Moreover, the loan amount is taken for a smaller tenure when compared to a secured loan. According to their tenure, business loans can be further diversified.
Navigating Loan Types: Short-Term, Intermediate, and Long-Term Considerations
- A short-term loan is the most apt one, with a repayment time period of a year.
- An Intermediate Loan is necessary for starting up a business to buy inventory, and equipment and also increase working capital.
- A Long-term term is necessary for well-established business houses that wish to expand and increase their fixed assets or related business acquisitions, with terms that run for 3–5 years.
Furthermore, drawing the thin line between critical needs and expenses that can be put off till a better financial situation prevails holds the key to preventing one from any financial predicament. Making a single hasty decision without any idea of its impact on your business might prove to be detrimental in the long run. Therefore, one must be very clear about his actual needs and necessities for enhancing and improving his business by borrowing the right loans with a detailed insight into its pros and cons.
Indexia Finance Business Loan
We are one of the best business loan provider in India. For a business loan, apply now!
Indexia Finance provides bank loans and is amongst the top 3 finance company and top 3 loan service provider company in India
Hence, acquiring more capital to promote any business or consolidating old debts and credits, beckons the call for Business loans.