A business loan is taken from the bank to start a business or expand an existing one. This money has a percentage of interest and is payable in a fixed period. However, loan aggregators help you with the best repayment options for a good 5 years. Explore Buddy Loan to reap more benefit for a business loan.
This loan can be an unsecured
that you may apply against another income that you have. To get this loan, you may sometimes have to give collateral, but in other instances, you will get a pre-approved loan without any hustles.
Business loans can be advanced to customers with different profiles, and they will take into consideration the ownership of the business, whether its registered and what its form of registration is. Professionals are also allowed to borrow business loans to expand their consultation businesses. However, banks have prerequisites that they consider when you are applying for a business loan
- You must have a solid business plan for the money you are borrowing
- You must have an asset base that will serve as collateral for the loan you are asking.
The higher the amount of credit, the more the guarantee
- You must have sound industry experience as this almost assures them of your growth
- Your business must have good credit
- You as the entrepreneur must have a good credit score that will be ascertained from CIBIL
Types of business loans
Line of credit loans
- Interim loans
- Secured and unsecured loans
- Balloon loans
- Letter of credit
- Alternative financing
- Instalment loans
Business loans may be used to:
- Start a business
- To expand an existing business
- To improve the machinery and tools
- To develop human resources and abilities of the business
- Eligibility for a business loan
- Proof of identity
Business loan requirements
- Income: You will have to show proof of income from your business continuity
- You need to have six months bank statement that will demonstrate a turnover of INR150000
- You need a board resolution in case of a limited company or co-borrowers’ details and authorization letter.
- Financial documents: Statement of computation of the business income for at least two years and an audited profit and loss account statement
- Should be a citizen of India
Age limit: You must be of at least be 21-65 years
Advantages of business loans
Business loans in India attract a tax benefit. Loan aggregators such as Buddy Loan help you reach with ease. When you get a profit, and you pay for your credit it is treated as an expense and therefore
- The loans are accessible and convenient
- Business loans offer multiple loan options for their customers
- Affordable loans
- Business loans
- Business loans in India
- Quick business loans
- Affordable interest rate
- Banks do not share in the profit you make, unlike angel investors and venture capitalists
- Business loans have lower interest rates.
Loan schemes for businesses
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