• Self-employed, private, public and proprietorship firms are eligible to apply.
  • The business should be in existence for a minimum period of three years.
  • The business should be profitable as per industry norms.
  • You need to have a satisfactory credit score.
  • Profiles and KYC of partners and directors
  • 3 years of audited financial statements and projections
  • Company documents and registration certificates
  • ITR and bank statements
Small Business Finance

Why and when to take small business loans?

Corporate finance is an important part of every business. If you aspire to achieve organizational goals in a short period of time, you need to apply for a loan. Do not use the emergency funds or your working capital for this purpose. When you apply for a loan for your small business, you keep the cash flow intact. It helps with business operations too. You can use the funds for any business-related need as there are no restrictions on the end-use.

How to choose the right loan?

Small business loans usually feature affordable interest rates and flexible repayment tenures. So, compare the interest rates offered by different lenders before you make the application. Choose a lender that has the lowest interest rate as it will reduce the amount of EMI payable.

Benefits of small business loans

When it comes to small business finance, Indian companies usually avail them to buy new inventory, new machinery, or hire more labor. The loan can be used for expansion or meeting short-term emergencies as well. This way, you won’t have to seek help from family members or friends or exhaust your credit card limit or dip into rainy-day savings.

Do note

Prepare a repayment schedule to ensure timely payment of dues. If you have excess funds in hand, you can choose to prepay the loan. Regular and timely payment of EMIs will help build a strong credit score. If you already have a loan and are unable to make the EMI payments, you can opt for a moratorium. However, it is only applicable to the EMIs between March and May.

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Rahul Badnakhe

Rahul Badnakhe

Technical Content Marketer,looking to share insights, continuously learn and innovate. Keep Reading, Keep Learning!

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