You used your entire savings and likely borrowed from friends, family and everybody you could tap to start that business. It’s been satisfying so far, and you feel like you need to give wings to your dream to achieve its desired scale. It may be worth your while to check out the wide variety of business loans that are on offer. If your needs are only related to funds required to run the business, do explore taking a working capital loan. Designed for entrepreneurs, these credit products are the liquidity your business needs to expand without compromising on its present and future. Read on to know more.
Top banks like IDFC offer business installment loan or BIL. This is essentially an unsecured loan which is provided to a self-employed individual and entity. You can such business loans for any business upgrade or equipment purchase. Like an EMI, this type of loan is repaid in equal installments at fixed monthly intervals.
A BIL is a term loan with competitive rates. This can address all your business requirements. IDFC Bank's hassle-free process, simple documentation will help you to expand your business in the right away.
Doctors, CAs, architects and other professionals can such business loans. The maximum loan amount varies between Rs. 25 lakh to Rs. 40 lakh depending on the professional. The maximum tenure also depends, from 48 to 60 months. A BIL can also be availed by proprietors, partnership firms, private limited company, and closely held limited companies, as well as manufacturers, traders and service providers.
There is no security or collateral required. A BIL has a low processing fee, which means more money saved. The minimal paperwork requirement makes this process easy. Plus, good banks offer comprehensive insurance coverage of loan and doorstep pick-up of documents.
It is likely you may have taken some business loans earlier. These may be high-cost. We can't blame you for taking such credit, because the business may have desperately required funds. However, the time to put an end to such loans is over. Yes, with business consolidation loans you can escape from the clutches of high-cost loans.
Business loans that allow you to consolidate also work if you have too many EMIs to pay to different banks. Keeping track of all your business loans can be difficult. So, use a business loan to consolidate debt from institutions like IDFC Bank.
You need to simply need to transfer your existing loans from other banks. This will help you enjoy better interest rates and also pay for everything at one place.
Expensive loans stifle the growth of your business in two ways. The high interest cuts your business budget, not allowing you to chase growth. Also, the various loans, papers, documents, and hassle-full processes take your focus away from the core aim --- to boost business.
For those who regularly need funds to run the business, a working capital loan is perfect. There are three types of such loan products. All you may need as documents are last 3 years audited balance sheet & auditor’s report, last 3 years ITR and last 12 months bank statement.
Cash credit or overdraft working capital loan is given after a due assessment based on your business turnover. You can get competitive interest rates. What's more, you will also receive flexible collateral terms in this form of working capital finance. Lenders like IDFC Bank offer expert advisory on working capital requirements, which eases your worries and saves time.
Term loans are another solution. This type of working capital finance provides you credit for business expansion. You can get maximum tenure of up to 5 years, which helps your plan for the long-term and avoid short-term targets. Like cash credit variant, term loans also are available at competitive interest rates and flexible tenure.
FD backed loans are for those who have available fixed deposits. Through this type of working capital loan solution, you can get as much as 90% of the FD amount as the credit. The beauty of this working capital finance is that the interest rate is linked to FD rates, which means they are quite easy on your pocket. Plus, the tenure is also linked to FD tenure. You can even get over the counter facilities at lenders like IDFC Bank.
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