If want to business for yourself or working who was the new plan but do not have the capital you need to invest in your work then a business loan is the perfect solution for you. What people complain about while thinking about business loans is that they might get cheated or about the “Business Loan Interest Rate“ or the loan processing time will take months while they lose out on their dreams. No more do you have to face problems as you can apply for a business loan online nowadays.
Eligibility criteria for applying for a business loan
First and foremost you must check the “Business Loan Eligibility“ to see if you stand a chance to even apply for taking out a loan. The eligibility criteria can differ from company to company but some of the basic criteria are as follows:
● Self-employed individuals who are both professionals and non-professionals can apply. Self-employed professionals mainly included doctors, architects, chartered accountants, etc cetera. Self-employed non-professional includes individuals who are traders and manufacturers, etc.
● Entities can also apply for a business loan. They include partnerships, private limited companies, limited liability partnerships, etc cetera.
● The companies who are giving out the loan may ask the businesses to prove that they are making a turnover of 40 lacs minimum per year.
● a minimum of 3 years of experience in the current business must be required for which the loan is taken out.
● One must also have a minimum of 5 years of total business experience.
● The business must also be profitable and one may be asked to provide the details for the past two years.
● The minimum annual income must be not less than 1.5 lacs per annum.
● The applicants must be at least 25 years of age and cannot be more than 55 years.
● The IT returns for the past 1 year must be filed properly.
● Lenders can choose to offer to give out the loan depending upon your geographical area as well. Check if such clauses are mentioned by the company from which you will seek out your loan.
Documents you have to produce to be able to apply for a business loan:
● The PAN card for the company, individual or the firm.
● Photo identity proof
● Address proof
● Past 6 months bank statement
● The latest income tax return along with the income balance sheet that has been computed which will also have the profit and loss account for the last 2 years.
● Proof of continuation is also required
● Certified copy of the partnership deal of your company or the sole proprietorship declaration.
● You may also have to produce the certified true copy of the memorandum and the articles of association.
“Apply for Business Loan Online“ from anywhere. No more do you have to stand in long queues and wait for days for your documents to get verified. Just log on to the website and click the business loan option. Fill the details and you will be ready to go.
A business loan is a boon for small businesses and start-ups but rejection on this loan is a matter of financial nightmare. In recent times, the number of approvals on corporate loans has decreased drastically due to the risks attached to it such as NPA has made lenders more and more harsh and cautious towards the approval of application. So ShubhBank is here to enlist “Few Reasons of Business Loan Rejection“ you have to take care to apply for business loan.
Poor Credit History: Lenders always evaluate your business credit score while deciding on your loan application. If you have any negative remarks on your credit report then it may directly lead to rejection of your loan application. So a good credit rating is utmost for direct approval of your loan whereas low credit score increases the chance of rejection or you may end up in paying higher interest rates on loan quantum.
Lack of Collateral: A high quantum business loan is a secured loan which means these loans are usually backed by some collateral. The value of loan money is directly proportional to the value of collateral or security. If you default on repayment then lender has right to use that collateral to recover their loan money from it. However, in case of new ventures, it is more difficult to “Secure a Business Loan“ as they do not possess any assets.
Overall Business Turnover: The overall turnover of your enterprises is one of the key parameters that come into play when lenders decide on your loan application. The evaluation of cash flow in your business will determine your repayment capacity and in case of poor cash flow, lenders will reject your loan application.
Age of Business: Most of the lenders evaluate the duration for which your business or organization has survived in the market while sanctioning the loan application. Every lender looks for at least three years of business presence to approve your business loan in one go. Apart from this, you are also asked for two years of IT returns to ensure the profit consistency of the firm.
Somethings to keep in mind after rejection of your business loan
• First and foremost, evaluate and figure out the reasons why your loan application was rejected. If the reasons are rectifiable then correct them at the earliest and re-apply for business loan.
• Secondly, the rejection of your loan application may adversely affect your credit score. You must exercise in building up your credit score as early as possible as it will determine your future credit capability.
• Lastly, you may consider a searching for other funding options can be taken other than a loan from traditional financial institutions.
Getting a business loan is a great step towards extending or growing your business and they are usually ideal for meeting your working capital needs or upgrading the new machinery for operation units. Taking above mentioned reasons in consideration, you can get an instant e-approval on your business loan from ShubhBank after successful submission of your loan application.
If you are a businessman and looking for a financial support for your business, then you must be aware that traditional bank loans are not only the source of availing a business loan. Nowadays the new and trending way for availing a business loan is digital banking. It is the new way of borrowing a loan which has features of fast business loan that is simple and easier. The days are gone when availing a loan is a cumbersome process and you have to go through hassles. The lending companies have spelled their magic with progressive digital growth and getting more advanced with every passing day. It is the perfect financing solution for budding entrepreneurs who live with a scarcity of time. The traditional way of loan will let you to wait for long to get business loan disbursed that will be a destructive factor for the growth of your business. With digital banking, you can enjoy the advantage of “Fast Loan Approval“. There are many other advantages we have discussed for which the entrepreneurs opt for digital lending:
ONLINE ACCESS: The online business loan provides you with an access to your online credit account. It means with online loan, you have right to access your loan account to get each and every piece of information regarding the loan any time.
FLEXIBILITY OF CHOICE: The flexibility of choice is the greater attraction of an online business loan. The digital lenders provide you the more flexibility in terms of loan disbursal as well as repayment options. The loan quantum depends upon the need of the applicant and his/her eligibility.
COST: There is no such difference between the cost of digital borrowing and traditional borrowing system. If you opt for an online portal to apply for a business loan, you will get an option to choose between the perfect lender that suits to your requirements and throws a best deal. This way, you can save a great amount of money and time.
FAST PROCESSING: The digital banking has the most appealing feature of faster processing of loan. While applying online, you can avail instant business loan and doesn’t need to wait for long time to get the loan sanctioned through banks. Getting a delay in loan disbursal can be hazardous for the survival of business, so applying online can help you to get the loan approval within few days.
EASY APPROVAL OF LOAN: If you are a businessman that is not for so long in market or you are a budding entrepreneur then getting your business loan approved from traditional banks may be a challenging task. Then online business loan is the best and easy way to avail financial support when you are in dire need or your business is at budding stage. The availability of loan depends upon the eligibility criteria’s and the provided documents.
The online business loan may be little costlier but the speed of disbursal and its convenience makes it a practical solution for many businessmen. The advantages you can get from an online loan are beyond the measures of time and hassles. So if you are in need of business loan and searching for best online lender in the market “Apply For a Business Loan” at ShubhBank.
A business loan is typically a type of financing that can be availed by the financial institutions in order to fulfill the urgent requirements of the institution. This credit is also referred to as entrepreneurial finance. Normally, for the growth of enterprises, owners require qualitative machinery and smooth production. It basically involves generation of funds, which will be reimbursed with a certain amount of interest. There is a variety of financing including- trade cash advances, mezzanine, asset-based, micro-financing, bank credits, cash flow credits and invoice. If you require a huge amount of funds for the growth of existing employment.
Advantages of business financing
Promoters usually avail entrepreneurial funding for a variety of reasons. These may include- financing new machinery and equipment, acquire more inventories, expansion to the great extent, sustain operations and many more.
These kinds of credits sources are very advantageous for meeting the capital requirements and for the overall growth of the institution or company. Here is the quick list of advantages of availing financing are as follows-
● Easy to avail
● Affordable costs
● Lowest interest rates
● Secure process
● Fast payment
● Convenient repayment options
● Sustain and growth of the enterprise
It has several advantages and promoters must assess their trading requirements before applying for this credit. It is necessary to know all the terms and conditions before applying for any type of credit in order to prevent complications in the future. After applying for the particular entrepreneurial credit, you will get immediate access to the funds. If you are looking forward to starting up new venture but do not have sufficient funds. Get a business loan for new business and raise funds for your enterprise easily.
Eligibility criteria for entrepreneurial financing
It is necessary to fulfill “Business Loan Eligibility” criteria
You can avail credit by meeting certain eligibility criteria-
● Age limit- owners age should in between 25 and 55 years old.
● Your enterprise or company should 3 years old.
● Your company’s previous year turnover must be audited by a registered chartered accountant (CA).
● Your company must have its income tax returns filed for at least last 1 year.
Documents required for entrepreneurial business
Owners or promoters must fulfill all the necessary requirements in order to obtain the growth of the enterprise.
Here is the complete checklist of documents required for business loan are as follows-
● Identity proof- PAN card/ Driving license/ voter ID card or passport.
● Residence proof- (electricity bill/ ration card/ passport/ trade license/ sales tax certificate/ lease agreement).
● Bank statement of last 6 months
● Latest income tax return (ITR) along with balance sheet and profit and loss statement for the last 2 years.
● Continuity proof.
● Audited financials of last 3 years
●Other essential documents including- sole proprietorship declaration, certified copy of memorandum and articles of association.
Entrepreneurial credit is very favorable for small-scale, medium or large scale enterprises. It is provided by the money lending companies on interest. The business loan interest rate normally varies from one financial institution to another. To apply for this credit, fulfill eligibility criteria and submit required documents along with the application form to the selected financial institution. .
To earn a lucrative income from your venture, it demands a lot of dedication, ideology, planning and implementation of ideas and you must have to learn how economize your professional expenses. Making a profit needs to be on your priority list and it further need expanding of your business. Any expansion requires enough funds at your disposal. The traditional way to raise fund is borrowing either from friend/relative or investors interested in partnership. Nowadays another option for sourcing a fund is to obtain a loan. A specific way to be availed to Boost Your Business with Loan provide by Shubhbank. The main aim of the product is to help businessmen and professionals to expand their commercial activities. It can also be used to buy required machinery, manpower recruitment, modernizing or improving etc. we provide the benefits of easy cash flow and helps you to access both short and long term finances fulfilling your all requirements. There are two types of loan that are provided: one is professional loan that are availed for self-employed such as doctors, chartered accountants and second is trade loans that are availed for businessmen and traders.
“Getting a Business Loan” is an amazing way to outsource your dream project. The factors that will be taken into account are your income, repayment ability, credit score and a skillful ideology. So prepare a detailed plan and keep your lender informed about your plan and figure out wisely that how much money you need. The loan quantum is provided depending upon your business model, revenue stream and balance sheet at comparative interest rates. The broad eligibility criteria for availing a loan is your credit history, business feasibility with profit and loss projection and a robust plan to convince the lender about financial viability. The documents required are the proof of business existence for 2 years, ID and residence proof, tax returns and credit references. The interest rates are adjustable with the options in choice of periodicity of repayment. It is easy for companies to receive financial aid for their enterprise using this scheme because being an entrepreneur is not an easy task. So a growing focus on economic development in India, ShubhBank have stepped up and launched a business loan at attractive interest rates to promote businessmen.
This product is preferred by many entrepreneurs due to minimal documentation and easy application process. You can easily apply for it without having to step out of your house making it hassle free process. Owing to fast approval, the funds will be quickly disbursed to your account. It is a great way to gain access to funds to gain a competitive edge in the corporate sector. We aim at enabling your business unit to run efficiently and successfully beating the financial crisis and avoiding high risk factors. Our efficient team helps you to track your application process and avail you with the great deals and offerings. So individuals who wish to expand their business can approach us online or visit our branch to meet their financial needs to commence business operations.