爱乐透彩票



  1. Fresherslive  » 
  2. News  » 
  3. Business Loan。。。。Business Loan。 Unsecured Business Loans, Types, Eligibility, and Checkpoints

Business Loan. Unsecured Business Loans, Types, Eligibility, and Checkpoints

Updated: Aug 30,2019 17:05 IST

Vikram Sharma

Business Loan are acquired for small scale and other business activities in order to meet the needs of the business. Business loans are provided by public sector banks, private sector banks and other non banking financial institutions. Business loan types, interest rates, eligibility, requirements, etc are given in the content below.

Overview of Business Loans

India is a largest market for blooming entrepreneurs. Entrepreneurship activities ranges from small to large scale business across India. Thus, Bank and other non-banking Financial institutions provide business loans for those budding owners of business and also for large businesses. Business loans can be either secured or unsecured and most of the business loan doesn’t require a collateral. More details on Business loans are briefed below in this article and few important details are given in the below table.
 

Interest rates

Varies between 17% and 25%

Loan tenure

12 months - 48 months

Loan amount

Varies according to many factors.

What are the Types of Business Loan?

Business Loans are provided under two broad category. 
Secured Business Loan - With a secured loan, the borrower pledges an asset (such as plant, equipment, stock or vehicles) against the debt. If the debt is not repaid, the lender may claim the secured asset.
Unsecured Business Loan - Unsecured loans do not have collateral, though the lender will have a general claim on the borrower’s assets if repayment is not made.

What are the Categories Business Loan are Further Classified?

Based on the use of fund acquired through business loan, it can be categorised into various categories as follows.
Term Loans - Term loans are provided for acquisition of long-term fixed assets like machinery, building or land. Term loans have a fixed repayment schedule and an interest rate that is either fixed or floating. Loan tenure ranges from 2-10 years, but it is advisable to go for longer tenure.
Loan against Property - Loan against property is acquired by giving residential or commercial or vacant land as collateral security to the bank. There are no restrictions on usage of funds as the loan is sanctioned against property. Loan tenure is from 3 to 15 years.
Loan against Shares or Financial Securities - Funds raised by pledging shares or financial securities. Loan tenure is renewed every 12 months.
Cash Credit Facility - Cash credit facilities is usually secured by pledging current assets of the organization like inventory or receivables. Loan tenure is renewed every 12 months.
Bank Guarantee - Bank guarantee is a promise from a bank that the liabilities of a debtor will be met in the event that the debtor fails to fulfill contractual obligations.

What are Eligibility Required to Obtain Business Loan?

Whether a small scale or a large scale business, certain eligibility criteria has to be met to in order to avail business loan. There are eligibility calculators available online which helps applicants to know their eligibility of obtaining the business loans by providing certain important details. Check the criteria given below.
  • Aged between 25 and 65 years
  • Profitable business for three years
  • At least Rs 40 lakhs turnover per year
  • Growing turnover
  • ITR for at least Rs 3 lakhs
  • CA audited financials
  • Business Loan amount up to Rs 50 lakhs
  • Loan for business - period up to 3 years
  • Any form of ownership

What are Documents Required to Obtain Business Loan?

There documentation that is done for any loan type but the documents needed differ for each type of loan. Submit the documents with updated information in the documents. Find below the documents required for applying a business loan.
  • Application form with passport-sized photographs
  • KYC documents
  • ITR returns for two years
  • Profit/Loss statement and balance sheet for two years
  • 6-month bank certified bank statement
  • Ownership documents
  • Proof of business loan documents issued by statutory authorities

How To improve Your Chance of Getting a Business Loan Approved?

Secured or unsecured loans, before applying you should make a checklist and make your chances of loan approval more. Pre-planning helps you to avoid unnecessary hassles at the time of applying for business loan. Keep all the necessary documents ready with updated current personal information. Check the points below to improve your chances of loan approval.
  • First and foremost, one should maintain a good credit score. When comes to company, it should have a good credit history.
  • Avoid multiple loan applications
  • Choose your bank wisely
  • Check your business existence
  • Apply for loan based on your repayment capacity
  • Maintain proper accounts of your business
  • Have a regular check of your CIBIL Score

What are the Checkpoints that Bank Consider Upon You?

There are certain criteria a bank checks upon you it provides you with the loan. Similarly, before applying for a Business loan either the individual or the company should do a good market research about the offers provided by the bank and other criteria and then go in for applying. Here are few checkpoints to review.
  • Interest Rates provided by the bank
  • Processing Fees
  • Prepayment and Foreclosure Charges
  • Other Related Charges
  • Loan Tenure offered
  • Offers on EMI Options (Flexi EMIs)
  • Customer Relationship

Business Loan for Start Ups

If someone is looking to start a new business, they can approach the bank for Business Loans for Startups. All that the bank requires will be a good credit score and proper repayment on Interest and EMIs. Those starting with new business are usually new for the market, sometimes young or sometimes with low revenue history, in such cases banks look for a good credit scores which reflects their repayment capacity and repayments on time. Business loans for startups can either be secured or unsecured.

More Information on Business Loan 

Business loans are absolutely a great help to flourishing entrepreneurs who aspire to start a business. Before applying for business loan, one should have done a SWOT analysis of the business plan and also have complete information about the business as well as about the loan schemes available in the market. More information on business loans are listed below.
  • When a borrower becomes bankrupt, unsecured creditors will usually realise a smaller proportion of their claims than secured creditors.
  • Thus, secured loans will generally have lower interest rates due to the above said reason on unsecured loans.
  • Small business lenders may waive the personal guarantee requirement if the business has strong business credit scores and revenue.
  • Many lenders require principals with 20% or greater ownership in the business to provide a personal guarantee.
  • Small business lenders may waive the personal guarantee requirement if the business has strong business credit scores and revenue.

General Related News

Sardar Patel Scholarship 2020 - Apply Online for Sardar Vallabhai Patel Scholarship 2020 for Student Pursuing Graduation

19 days ago
Sardar Patel Scholarship 2020 for Students Pursuing Graduation: Buddy4Study India Foundation’s Sardar Patel Scholarship 2020 for Student Pursuing Graduation should be applied ....

Aadhar Card Download: How to Download Aadhaar Card Online and Print out e-Aadhaar at UIDAI.gov.in

22 days ago
Aadhar Card Download - Step by Step Procedure to Download Aadhaar Card by Name, DOB, Entrollment Number, Mobile Number or Without Mobile Number at UIDAI Website. UIDAI is an easier ....

爱乐透彩票Chandra Grahan 2020: Chandra Grahan Lunar Eclipse on June 5, Chandra Grahan Date, Timing in India

24 days ago
Chandra Grahan 2020: The second 2020 Chandra Grahan Lunar Eclipse is set to take place on June 05. The first lunar eclipse took place on 10th January earlier year. On 5th June ....

OSBCL Odisha Liquor Home Delivery Order Online at osbc.co.in - How to order liquor online in Odisha

25 days ago
OSBCL Online Delivery: Odisha State Beverage Corporation(OSBC) Limited resumed its work on Saturday to restart sales of online liquor delivery in Odisha. Liquor home delivery in ....

Aadhar Card for Children. How to Apply Online and Offline Mode and Other Details

27 days ago
Aadhar Card for Children as well as an adult is a voluntary process and can be enrolled for even a newborn baby. Aadhar Card for Children can be got with the proof of address and ....

Aadhar Virtual ID for Aadhar Authentication How to generate VID, Retrieve and More

27 days ago
Aadhar Virtual ID is the 16 digit number which can be generated only by the Aadhar card holders. Aadhar Virtual ID is outlined along with the Aadhar number for the privacy and ....

How to Lock and Unlock Biometrics in Your Aadhar Card Different Methods in Detail

27 days ago
UIDAI had set up a feature for locking and unlocking the cardholders' biometric information. Aadhar Lock and Unlock Biometrics information in Aadhar Card can be done through ....

Aadhar Card for a Non Resident Indian. Procedure to Avail NRI Aadhar and other Information

29 days ago
Aadhar Card for Non Resident Indian can be obtained only by offline mode. To avail Aadhar, a Non Resident of India or NRI must be present in India during the registration of the ....

How to Reapply for Aadhar Card. Steps to Follow and Complete Procedure in Detail

29 days ago
Aadhar Card can be re-applied if the request of the resident for Aadhar enrolment is rejected. Aadhar Card Re-Application can be performed only through a visit to the permanent ....

Link Aadhar Card with Ration Card Procedure Online and Offline in Detail

30 days ago
Link Aadhar Card with Ration Card is a mandatory process to become eligible for receiving some food supplements from the Public Distribution System at the government subsidized ....

Trending News

爱乐透彩票BobMovies 2020 - Download BobMovies HD English Movies, Latest BobMovies Movies News at BobMovies in

1 day ago
BobMovies 2020 - BobMovies is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. BobMovies Movies Download illegal ....

9jarocks 2020 - Download 9jarocks HD English Movies, Latest 9jarocks Movies News at 9jarocks in

1 day ago
9jarocks 2020 - 9jarocks is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. 9jarocks Movies Download illegal ....

GudangMovies21 2020 - Download GudangMovies21 HD English Movies, Latest GudangMovies21 Movies News at GudangMovies21 in

1 day ago
GudangMovies21 2020 - GudangMovies21 is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. GudangMovies21 Movies ....

CatMouse APK 2020 - Download CatMouse APK HD English Movies, Latest CatMouse APK Movies News at CatMouse APK in

1 day ago
CatMouse APK 2020 - CatMouse APK is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. CatMouse APK Movies Download ....

UnlockMyTv APK 2020 - Download UnlockMyTv APK HD English Movies, Latest UnlockMyTv APK Movies News at UnlockMyTv APK in

1 day ago
UnlockMyTv APK 2020 - UnlockMyTv APK is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. UnlockMyTv APK Movies ....

CyberFlix 2020 - Download CyberFlix HD English Movies, Latest CyberFlix Movies News at CyberFlix in

1 day ago
CyberFlix 2020 - CyberFlix is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. CyberFlix Movies Download illegal ....

Fou Movies 2020 - Download Fou Movies HD English Movies, Latest Fou Movies Movies News at Fou Movies in

1 day ago
Fou Movies 2020 - Fou Movies is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. Fou Movies Movies Download ....

KuttyRockers 2020 - Download KuttyRockers HD Tamil Movies, Latest KuttyRockers Movies News at KuttyRockers in

1 day ago
KuttyRockers 2020 - KuttyRockers is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. KuttyRockers Movies Download ....

MovieGaga 2020 - Download MovieGaga HD English Movies, Latest MovieGaga Movies News at MovieGaga com

2 days ago
MovieGaga 2020 - MovieGaga is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. MovieGaga Movies Download illegal ....

Gnula 2020 - Download Gnula HD Spanish Movies, Latest Gnula Movies News at Gnula in

2 days ago
Gnula 2020 - Gnula is one of the most visited illegal websites that allows users to download a huge collection of pirated movies for free. Gnula Movies Download illegal online ....

Entrance Exams

VIEW ALL

Home Loan


FreshersLive - No.1 Job site in India. Here you can find latest 2020 government as well as private job recruitment notifications for different posts vacancies in India. Get top company jobs for both fresher and experienced. Job Seekers can get useful interview tips, resume services & interview Question and answer. Practice online test free which is helpful for interview preparation. Register with us to get latest employment news/rojgar samachar notifications. Also get latest free govt and other sarkari naukri job alerts daily through E-mail.

中兴彩票 闲来斗地主 欢乐赛车 国丰彩票 重庆彩票网