It has been some time now since the small and medium enterprises have been exploring the vast scope in financing. Unlike a decade ago, financial institutions are inclined towards providing a tailor-made loan product which can cater to the business needs. However, most of the financial institutions have a stringent policy which makes it quite hard for SMEs to obtain Business Finance. This makes it difficult of small and medium industries to work things out during the financial crunch.
With upcoming alternative lenders, the process of obtaining a business loan has become less complex. Non-Banking Financial Companies (NBFCs) such as Bajaj Finserv have quickly made a name for themselves by providing flexible deals to the borrowers. Not only are their policies less complicated, but they also offer benefits such as a line of credit, online access, higher amount, the favourable rate of interest and so on.
When looking forward to availing a business loan, there are five things that you must keep in mind to get a business loan in India:
Descriptive Plan: A descriptive business plan helps in getting a loan deal approved. It is one of the basic things that a lender seeks from a prospective borrower. In case you do not have a fair idea about it, you can hire a professional personnel who can get it done for you. A detailed plan is nothing but a business concept in detail. A well-planned preparation gives lenders the sign that you are definitive and focused about what you want to achieve. A solid concept which showcases a clear idea will solidify lenders trust in your repayment capabilities.
Personal Touch: Most of the time entrepreneurs keep their personal and enterprise interest segregated to avoid complications. Therefore they approach different banks for the same. However, there are certain advantages of Business Loan where you already have a personal loan. The first advantage is that you have already forged a strong relationship with your lender. Secondly, they will try to provide you with better offers than other financial institutions.
Prepare for Eligibility: Each and every lender has certain guidelines which need to be met. Once you have done adequate research and shortlisted your lenders, you will find that there are some loan guidelines which you need to abide by. These guidelines include everything from eligibility criteria to a borrower’s history and work. For a business loan, it is essential that you meet all the criteria.
Approach the NBFCs: Non-Banking Financial Companies (NBFCs) are a better option when it comes to availing business loans as compared to traditional banks. They are quite flexible in their approach and provide hosts of benefits better than that of a traditional lender. Highly rated NBFCs such as Bajaj Finserv are well known for the provision of the higher loan amount, line of credit facility and online access to name a few.
Collateral Free Loan: When looking to take a business loan, it is not necessary that you need to submit a collateral against the loan. There are some NBFCs and banks who do not require you to submit a collateral if your financial credibility is good. A collateral free loan is one of the most sought-after forms of business loans. Many entrepreneurs bow out of taking business loans because they do not have any collateral to submit. However, with NBFCs such as Bajaj Finserv present, you do not have to do that.
These are few of the things that you must keep in mind while opting for a business loan in India.