So, you want to grow your business. First of all, a hearty congratulation for your brave decision. We must tell you that if you want to grow your business by taking a business loan and searching for the best business loan, then you are on the right page. We are committed to helping you achieve your goals and in order to do this, we would like to tell you that how you can find the best business loan in India by following the right process, so let’s start one by one.
Secured Loan or Unsecured Loan:
If you’re new to the borrowing than you must know that in the commercial lending business there are two kinds of loans that are prevalent right – secured loan and unsecured loan. A secured loan is given to those business owners who want a loan at a lower interest rate and to do so they never hesitate to pledge security to the lender. On the other hand, unsecured loans do not require any kind of security or collateral and come in handy for those business owners who are new to the borrowing.
When you take a business loan from a bank or NBFC, you need to decide whether you want to take for a shorter tenure, let’s say 2-5 years and for longer tenure more than 5 years. So, if you’re a small business owner, you can take a business loan for a shorter tenure and once you repay the amount, you can still apply for a fresh business loan from the same bank. For example, IndusInd Bank business loan offer repayment tenure of 5 years. So, you can look for such loans that are cheaper in the interest rate and shorter in repayment tenure.
To access any kind of credit you need to fulfill the eligibility criteria of the lender. Eligibility criteria are a set of predefined terms that should be filled by the borrower in order to get a loan. Since business loan is also a form of credit, you need to check the eligibility criteria before you apply for it. However, to simplify things you can look for a simple eligibility criterion that will increase your chances of getting a business loan and saves you from all the possible troubles that you may experience later.
Just like the eligibility criteria, you should focus on the lender who asks for minimum documents. Generally, some lenders ask a heap of documents to arrange some credit for you, which most of the time ends up in zero progress and frustration. You are a business owner, and you want to invite any frustration – right? So, always make sure that always say yes only to that lender who asks for minimum documents because there is no point in submitting your documents just to get rejected.
No Hidden Charges:
Sometimes you forget to check any hidden charges in your loan application and regret later for your negligence. Although, there is no point in cursing yourself after the loan disbursal because you have agreed to their terms now and this can’t be reversed. However, you can play extra smart while making your business loan application and carefully check whether it asks for unknown charges. So, it is a wise thing to compare everything including interest rates, processing fees, and kind of hidden fee. For instance, IndusInd Bank business loans are offered at a marginal processing fee of 0.5% and do not ask for hidden charges.
Always Cross-Check Everything:
As a vigilant borrower, you must double-check everything by comparing it with different platforms. This process includes checking of loan offers, interest rate, business loan terms and conditions, processing fees, and more. Now, when you find that everything is true use tools like business loan EMI calculator to plan your repayment. This tool is simple and free but to take the full advantage of it enter different variations starting from minimum to maximum. Suppose you use IndusInd Bank Business loan EMI calculator, then enter the lowest interest rate and shorter tenure and keep it increasing by using different variolation until you convinced.
Taking the best business loan in India is not much difficult if you follow the right process. Starting with the type of business loan, interest rate, and repayment tenure don’t miss anything. Further, look for easy eligibility criteria and go with a lender that asks for minimum documentation. But, don’t stop here, research more, double-check everything and don’t forget to use the freemium toolkit like business loan EMI calculator and eligibility calculator and make your application with the right lender. If you’ll follow this process, you do not just get a business loan easily but you will be able to skyrocket your business without cursing yourself later.