The MSME sector in India contributes significantly to the economy of this country. It employs around 110 million Indians, and underwrites approximately 30% in India’s GDP. At the same time, they also contribute around 40% of this country’s exports. To ensure the growth of this sector, financial institutions around the country offer small business loans at reasonable terms.
How to get a business loan quickly?
With the advent of the online application process, availing small business loans is not a hassle anymore. However, one must follow some methods to make this process quicker. Here are 5 tips that can make it easier to get a business loan in India.
Narrow down on the purpose
An advance like this can solve a number of purposes. One can avail it to –
Begin a new business.
To extend their existing business.
To improve the infrastructure.
Manage various expenses.
Fulfil any sudden financial requirements.
Once the purpose of a business loan is sorted, then it will become easier to approach a lender, and apply accordingly.
Fulfil the eligibility criteria
Small business loans come with a set of eligibility criteria that a borrower must fulfil to avail the credit. Therefore, before applying for it, individuals must go through these requirements and check if they can successfully meet them or not.
Since every lender has a different set of requirements, borrowers must adhere to it to avail the loan.
Selecting a lender
Several different lenders offer small business loans with similar benefits. Hence, a comparative study is essential to find a suitable financial institution. Borrowers can compare the interest rate, tenure, loan amount etc. to find a lender that they are comfortable in dealing with.
Nevertheless, performing this comparison along with ticking-off the important checklist before applying for a business loan will save borrowers time and help them to keep everything in order.
Keeping the documents in order
Every loan application requires submission of a list of essential documents. If the borrower keeps such papers ready, it will make their loan application and approval process quicker. This list of documents typically includes –
KYC documents.
Business ownership documents.
Financial documents.
Any discrepancy in these documents can delay, or rejection, of the loan application.
Look for pre-approved offers
Pre-approved offers help borrowers to save significant time on their loan application. These offers are usually extended to existing customers. In case an individual already has a working relationship with a particular financial institution, he/she can quickly avail an advance for the business.
In this process, the lender already has the needed documents and eligibility information of the applicant. Thus, they can streamline the process and make it quicker.
Individuals who own a small business in or around the national capital can avail a business loan in Delhi, to support their firm. Bajaj Finserv is one such lender that offers Business Loans at attractive interest rates, flexible repayment schedule, and a loan amount of up to Rs.20 lakh. Moreover, the eligibility requirement is minimal, along with collateral-free nature, makes availing an advance easier.
Also, the company offers pre-approved offers that make the loan application process time-saving. It is applicable to financial products like business loans, personal loans, etc. Applicants can quickly check their pre-approved offers by sharing their essential contact details.
Eligibility criteria
To successfully avail a business loan, one needs to fulfil the following eligibility criteria.
Applicants must be within the age bracket of 23 to 55 years.
Borrowers must own a business which is operational for at least 3 years.
Income tax return of the business must be filed for a minimum of one year.
Apart from these, if the financial institution has any additional criteria, borrowers need to meet them as well.
Certain benefits of MSME loans, like no-end use restriction, make small business loans ideal for companies to support their monetary requirements. With the help of this credit option, they can successfully manage any planned or unplanned expenditures that they may have. Along with the financial institutions, the Government of India has also introduced different schemes to extend financial assistance to this sector.
