A business needs a lot of cash for following the changing market trends. These funds are not only required for the survival of the business but also to handle other expenses which are required to maintain the smooth business operations. Therefore, every business must maintain a high level of working capital as it ensures the effective and efficient running of the firm without any obstacles.

In some cases, when you find the working capital is low or shortage of funds, a business owner can “Apply For Business Loan“ and use that loan money to cover the different expenses of the unit. In this post, we have discussed some expenses which you can fulfill with the help of a business loan:

Cost of location: Every business set-up requires a location that is beneficial for both the supplier and the market. Besides that, it depends upon if you buy or rent the place too. Once you set up your firm then your expenses can be related to the maintenance and expansion of the business required as per needs. These things require a lot of money where a business loan can help you with all these.

Cost of assets: When you run some business unit, you need some assets that will help you to achieve success in production and manufacturing as well as increase efficiency. To upkeep these assets and to purchase the upgraded ones, you can secure a business loan. The loan quantum from this loan solution will help you take care of all expenses related to purchasing machinery or equipment.

Costs of employees: Your office staff is very important to mark your business operations. So, you need to take good care of them and offer those bonuses and other benefits. These benefits can range from high remunerations to health schemes, to gifts and provident funds or sometimes with vacation etc. If your business unit has more labor, then you may require a higher amount and hence a business loan will make you sure to take care of employees related expenses.

Costs of security: It is very important for a good survival of your business by keeping your location, machinery/equipment, your production unit and your employees up to the mark. However, it is also very significant to ensure your firm is safe from any theft or malpractices. To get a high level of security, it needs a higher cost where again a business loan can help you to cover such expenses.

Having an eye for all such things while running a production unit is very important. It enables you to identify any flaws and needs to take corrective steps. In case, your profits or working capital is not enough then you need to worry about it. All you need to do is “Apply For Business Loan Online“ or offline via ShubhBank and by securing a good loan quantum; one can clear all these expenses. First, check your loan eligibility for getting an approval on loan and then compare the interest rates on it to secure a best deal ever.

Personal Loan is the most popular financial product offered by financial institutions and most preferred loan solutions by the borrowers. A personal loan has amazing benefits and great feature for which it is considered to be a financial hero. Most of the people who are seeking funds for their professional and personal needs usually “Apply For Personal Loan“ and it is not less than a hero for them.

We have listed some of the basic reasons why personal loan is believed to be a financial hero in the given article:

No collateral: It is an unsecured type of loan which means it does not require providing any personal asset as a security to the lending institution. It is granted on the basis of borrower’s credit history, repayment capability, current loan obligations and most importantly the credit score. However, it does not require any collateral being an unsecured loan but lender may charge you high interest rate on it.

Savior in financial emergency: The personal loan is the instant form of loans in country. You can get an approval within 2 working days after submitting all the required documents and loan money can get disbursed in 24 hours to your bank account. As the funds are granted immediately so you are enable to use the money for any personal emergency or business requirements such as for working capital needs or expanding the business.

Moreover, one can use it to pay any medical bills, utility bills or to fund their studies, wedding as well as for travelling purpose. Hence, it is called out to be savior in emergency situations.

Less documentation: This loan does not require any mortgage so the documents required to process the loans are very less in number. The borrower just has to submit his/her KYC details, professional details and current loan obligations. You don’t have to waste your valuable time in gathering the piles of paper. Thus the loan process requires very less time and gets approved in shortest possible time.

Boost your credit score: Securing a personal loan and repaying it on time can boost your credit score to great extent in a positive manner. Be it a small or huge amount, but timely payments of EMIs strongly impacts your credit report. It will directly help you in future to secure the newer and bigger amount of loans at smart rate of interest.

Use it for multiple purposes: Either you “Apply For Personal Loan Online“ or offline, one does not require disclosing the reason behind securing it. The lending institutions do not ask the borrowers as to why they are taking the personal loan. She/he can apply a personal loan to fulfill the various personal and professional purposes which may include Medical emergency, business requirements, debt consolidation etc.

Hence, if you are in need of funds to fulfill any of your financial emergency, get in touch with ShubhBank to avail a personal loan which is offered with amazing features, great benefits as well as competitive interest rates with hassle free loan procedure.

A business loan helps the business owners to turn their dream of business ownership into a reality. Most of the lenders in the market offer the business loan to provide necessary funds to the businessmen. However, when you finalize your decision to “Apply For Business Loan“ which helps you to get business off the ground but it has certain drawbacks which we have mentioned below:

Weary Application Process: A business loan has a tedious application process with lots of complexities as compared to other loans. Every lender checks and validates each and every required document that business person puts in application. The lender judges your loan eligibility whether you are eligible or not for business loan which could be an extensive process.

Chances of Rejection: Every lender imposes strict rules and conditions on the business loan approval. Not all the businesses will meet the eligibility criteria fixed by the lending institution. It is always good to know how lender analyze your application before sanctioning you a loan.

Don’t waste your time in application if there are no chances of it being accepted d dealing with rejection can be difficult and left you wondering, where you should go ahead to get funds for your business needs.

Collateral: Every lending institution requires some form of asset as a security before lending you the loan money. Hence, you have to put any of your personal assets at risk if your purpose doesn’t get fulfilled. You may face the possibility of losing not only your business but also the asset you pledged for loan.

High Interest rate: The rate of interest on business loan can be very high which can defer your business development and growth as your business needs to gain profit from the loan money and manage the cost of high interest rate. Moreover, this extra cost makes it difficult to plan other sound financial strategies.

Credit Score: Some of the lending institutions will let you peek at the loan money depending upon the rate of your credit report. Whether you “Apply For Business Loan Online“ or offline, you have to permit the lender to access your credit report and it will always drop your score by few points.

Applying the loan with multiple lenders put your creditworthiness in a worse place than you applied it for first time. If you want to secure a bigger loan quantum, you have to maintain a good credit score by being regular in your repayments and shedding off the debt load.

Loan Approval: Above mentioned factors wouldn’t be an accurate list of setbacks but it’s hard to get a business loan in some instances. Few lenders offer shorter and streamlined ways to get required finances but renowned lenders still ask the business owner to submit a lot of financial paperwork, tax returns as well as marketing plan to get into the door.

It can be almost impossible for new venture to get a business loan as lenders ask for the profit records of last two or three years. Therefore, start ups choose to look for other methods of funding.

An EMI or equated monthly installment is the payment which you are charged for repaying the loan amount you are approved for and interest charged on it. It will not be the same amount until the end of the repayment period. There are number of factors that impact the amount of the installments that you pay towards the principal amount when you “Apply For Loan“. We have mentioned some of the factors that can highly affect your EMI in this article. Let’s have a look:

Change in interest rate: Your rate of interest can vary many times during the tenure of the loan. However, it can impact you in both positive and negative way as if interest increases, you will have to repay more EMIs whereas a reduced interest rate can lower your installments.

Generally, there are two types of interest rate- fixed and floating. If you choose fixed interest rate on your loan, then changes in the rate will not affect your EMI but if you go for a floating rate of interest on your loan, then your EMI keeps on changing with the change in RBI rate guidelines.

Prepayment of loan: One has a right to prepay a lump sum amount to close the loan. Every lending institution has a provision for extra payments made over and above the equated monthly installments. Some of the lenders will allow you to prepay the loan but will levy 1-3% charge for foreclosing the loan.

One needs to be cautious and should know the terms and conditions about prepayment charges before availing a loan. Most of the lenders waive off the prepayment charges if you are paying off from your own pocket such as using your bonus or investment, however, if you are taking a loan from other lender to pre pay the existing loan, they can charge you more.

Change in repayment period: When you negotiate your loan tenure with your lender or planning to switch to a new lender with a new repayment structure, it will surely change your EMI. To exemplify, if you switch to a long tenure, then you have to pay a less EMI but if you opt a short tenure then your EMI will be high.

One of the associated benefits with short tenure is that one can repay the loan faster but a long tenure will result in less EMI which can shed off your loan burden. The only disadvantage of long tenure is that you will end up paying more.

Flexible repayment options: Every financial institution provides you flexible repayment with step up and step down options. One have to pay lower EMIs at the start and as the tenure reaches end, one pay higher EMIs in the step up process which is good for people who take a home loan in early age while in step down, one will pay higher EMIs in the initiative period and as the tenure reaches the end, he/she will pay lesser EMIs which is better for individuals who are near to their retirement.

You can switch to ShubhBank to “Apply For Loan Online“ or offline that provides number of loans for fulfilling your requirement and offers the best EMI for you.

With COVID-19 restrictions changing daily, every business person is under great deal of stress by disruptions in supply, lower cash flows and increasing overhead costs. Nowadays, many lenders are offering secured and unsecured business loans to keep your business healthy as well as help you to provide the customers, a quality services and products. Being a new business person, when you don’t have much of assets to pledge for loan, you can also “Apply For Business Loan“ without collateral.

Yes, such loans are called unsecured business loans especially for those who don’t have any assets to offer as collateral. It could be great if your firm is growing and you require funding to cover new costs. Collateral is a main difference between secured and unsecured business loan which have a great impact on loan terms which we will discuss in detail.

→ Loan Amount: As there is no requirement of security, the loan amounts sanctioned by lenders are small for unsecured business loans as there is more risk involved to default on payments where as secured loans will generate you a desired loan quantum.

→ Loan Tenure: Unsecured loans are always offered for a short tenure as compared to secured business loans. As there is more risk involved for lender to recover the loan money but if your repay the loan as per predetermined EMI schedule, you can secure other loan for longer tenure easily because of your trustworthy business.

→ Interest rate: Most of the lenders charge higher interest rate for an unsecured business loan than a secured one. Providing a lender with no security makes you more vulnerable to loss in case of default, for which they charge high rates to compensate for that.

There are some advantages linked to unsecured business loans which are mentioned below:

→ No collateral: A secured business loan always demands for some form of collateral but in unsecured loan, one does not require collateral. It means even if you default in case of such loan, one does not risk losing any security to the lender.

→ A chance to grow: If you don’t have any asset to provide a lender, it should prove as a barrier for your business. Therefore, unsecured business loans are great way to build a good credit score as well as these loans have shorter tenure, one can borrow small quantum, repay them quick and can secure another business loan qualifying you with larger loan amounts.

→ Quick processing: The loan processing and disbursal time for unsecured business loan is less as lender does not have to spend time in verifying the value and legitimacy of the asset you offer them. These business loans generally require minimal documentation which reduces its processing time. If you have a good credit history, strong business plan and business documents in hands, you can easily process a business loan within few days.

If you want to “Apply For Business Loan Online“ or offline, start your unsecured business loan application with ShubhBank today. You will experience a zero hassle and zero hidden charges on our business loans.

Have you ever suffered a loan rejection? Do you know the reasons behind this rejection, if yes, and then do you want to improve your odds of your loan application approval? Before heading to the reasons, you must know how the loan processing works, steps involved in loan application that will make you eligible for re-application with better chances of approval. Generally, personal loans are unsecured type of loans that doesn’t require any security against them. You can “Apply For Personal Loan“ from various lending institutions.

There is no standard set of documents that each lender asks for as it varies from lender to lender. Typically, you will need to submit these documents such as PAN card, address proof, last three months salary slips, latest bank statement etc. However, personal loans are the convenient form of debt but getting an approval could be challenging sometimes. There is a set of criteria that lender will ask for while considering your loan application. Let us have a look on some ways to fix your loan eligibility.

→ Review the reasons of loan rejection: To fix any problem, you must know the reasons behind it. There could be number of reasons for your loan rejection. Some of them may be low monthly income, bad credit score, inaccurate information, unstable profession, existing loans, number of loan enquiries etc. the lender will not take such things positively and may reject your loan application.

→ Improve on credit score: A credit score helps the lender to determine your creditworthiness. If you have a high score of 750 or more, you have greater chances to get your loan approved and you may also get an opportunity to secure a loan on low rate of interest. So it is crucial to build a strong credit history. To do so, it is important to make timely payments on your dues, credit card bills and existing loan repayments.

→ Maintain your debt-to-income ratio: This is the ratio that determines your debts with respect to your income. A higher ratio will reflect that you have too many debts and unable to repay your loan. Therefore, to maintain your ratio low, you must repay the existing debts before applying for new loan. In result, lender will be risk free to provide you personal loan at competitive interest rates.

→ Compare and borrow: Every loan enquiry adds up to your credit report and affects your score adversely. So, do a proper research about lender and compare the loan products online. Every lender has different set of eligibility criteria and rate of interest. You must choose the lender that caters your needs and provides you quick and convenient personal loan.

→ Check your documents before applying: Before you “Apply For Personal Loan Online“ or offline, check your all documents in place. Do not provide any inaccurate information to comply with lender’s terms to face any rejection. Never make a rush before re-applying any loan.

At the end, do not get disheartened, if you get your personal loan rejected. Just follow the above mentioned steps to improve your chances of loan approval.