Simple Ways on How to Get Business Loan In Delhi
At some point in time, you will need funds to manage a financial requirement in your business. You may need to buy new stocks, purchase new machinery, or expand your plant space. In such times, you can either use your cash reserves or opt for a business loan. Risking all your cash reserves may not be the best option to cater to your business needs.
Getting a business loan in Delhi is a more viable option to manage your finances without encouraging any financial burden. If your business is making profits, you can opt for a loan to take care of both short-term and long-term needs. Some lenders in Delhi offer a collateral-free business loan which means that you will not have to pledge your assets as collateral.
Features of a Business Loan
A business loan in Delhi comes with a host of features and benefits that ensure to save you during a cash crunch. It could be in the form of a term loan, working capital loan, overdraft, etc.
- You can get a maximum loan amount depending on your lender, repayment capacity, current financial obligations, etc.
- The loan repayment tenure usually ranges between 12 to 60 months, giving you the flexibility to repay the loan without defaults or delays.
- It is a collateral-free loan. It means that borrowers are not required to pledge their assets as security.
- Since the entire process of applying for a business loan in Delhi is online, you do not need to step out of your house to apply for a loan.
How to get a business loan in Delhi?
Whether you want to take a working capital loan, term loan, or a startup loan, you will need to follow the underlying steps to gain quick access to a business loan:
Set your business goals
First of all, you need to assess your business needs and then decide which loan may be suitable for you. Do you want a loan to deal with a short-term financial need, or you want to expand your business operations that require long-term financial commitment? Having a business goal enables you to choose a flexible repayment term that best suits your needs. Besides that, lenders prefer borrowers who are well-aware of their needs and have a concrete plan to repay the loan amount.
Choose the type of loan you need
There are types of business loans in Delhi – secured and unsecured business loans. A secured business loan requires you to pledge an asset of considerable value in exchange for the loan amount you need. Your assets play a crucial role in your business loan application. If you are a new business owner, you may not have any assets to give as collateral.
Whereas, an unsecured business loan requires no collateral. You are offered a loan based on your business plan, finances, credit score, etc. Also, you will have to incur a higher interest rate compared to a secured business loan.
So, before applying for a business loan, you need to evaluate your needs and then choose a suitable loan.
Find the right lender
Not all lenders in Delhi offer the same features and benefits for acquiring a business loan. Some banks may charge you higher interest and require more paperwork, and some may have suitable offers. Before applying for a business loan, you will need to compare different lenders and their offers. It will help you choose a lender that offers a lower interest rate and flexible tenure. Make sure that your preferred lender does not have a lengthy process to apply for a loan.
Meet your lender’s eligibility criteria
- Each lender has certain requirements that you will need to meet before applying for a business loan in Delhi. These criteria include:
- You must be at least 21 years old at the time of application and 65 years at the end of the loan tenure.
- Your enterprise must maintain a minimum turnover based on your lender’s policy.
- Your business must have been making profits for at least two years.
Prepare the documents required
You need to submit the following business loan documents along with your application.
- Identification proof: Aadhaar Card, Driving License, Voter ID Card.
- Address Proof: Electricity bill, gas bill, phone bill, or passport.
- Bank statement for the past six months.
- Income Tax Returns, Balance Sheet, Profit, and Loss account.
- Trade license, sales tax certificate
- Sole Proprietorship Declaration, Partnership Deed, Memorandum, and Articles of Associations.