Business Loan
About
Working Capital
Running a business is not easy. A business loan allows you to bring funds for your business without altering the current structure of ownership in any way. Funds can be used for various reasons such as Starting a Business, Running a Business, and Expansion in Business. A business loan is a borrowed amount of capital that is used for an investment in a new or existing business set-up. Whether small or medium-sized enterprises (SMEs or MSMEs) or large businesses. Business loans are categorized broadly into the following 2 segments. 1. Unsecured business loans – 3-year term loans for proprietorship, partnership, private limited companies and limited companies based on a sound balance sheet. 2. Secured business loans – There are varieties of secured business loans.
Funding in rupees as well as foreign currency for proprietorship, partnership, private limited companies and limited companies. Working Capital financing Fund Based/Non-Fund Based, Trade Finance (Buyers Credit/Suppliers Credit), Factoring, SBLC, Bill Discounting Invoice Discounting
Equipment financing / Machinery Loan
Equipment financing is for the manufacturing sector. Any equipment required for manufacturing the product can be financed by banks/financial institutions. The equipment is given as security for this loan and on a case-to-case basis, the collateral such as residential/commercial property can be insisted upon.
Term Loan
Term Loans are given for the capital expenditure of the business. It could be for building the factory premises, improving the infrastructure, modernization of the existing structure, etc. The security for the loan shall be the tangible assets created from the loan along with the collateral on a project basis. A term loan is simply a loan that is given for a fixed duration of time and must be repaid in regular instalments. These loans are usually extended for a longer duration of time which may range from 1 year to 10 or 30 years. The rate of interest charged under these loans may be on a fixed or floating basis, which will vary with market fluctuations. Term loans are mostly used as small business loans but can be taken on an individual basis as well.
Small Business loan / SME / MSME
Banking and NBFC finance remain the mainstay of India’s small and medium enterprises. Business loans help your small business grow, allowing you to invest in infrastructure, operations, and plant and machinery. Moreover, business loans can also be a veritable medium of maintaining Business for critical business operations. Customized business loans are a new category of business loans which are tailored to meet the specific needs of a new-age business or startup. These loans offer your enterprise the opportunity to scale and give it the competitive edge necessary for success in today’s world. We offer business loans of ₹ 50,000 up to ₹ 2 Crore to eligible SMEs. Our wider loan window increases the chances of business loan approval and provides you with the funds needed for the growth and expansion of your
venture. Gone are the days when you had to worry over business-related cash crunches and monetary issues. Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Your business may show you ups and downs but then there are always solutions to the unfortunate days. Business loans help you pull your business out of burdens and avoid future losses. Be it the immediate need for the installation of new machinery or the due payment of your suppliers, having the helping hand of a no-collateral loan can take care of all these issues. We understand the off days in business and so the need for business loans. This is the reason we offer you a non-collateral loan starting from INR 3 lakh and up to INR 10 lakh. The tenure for the same is 36 months. If you are looking for a small business loan, this could be your ideal deal. Our dedicated team helps you do the paperwork in no time and with utmost authenticity, and transparency. You just decide the amount and reach out to us. Relaxing your burdens will then be our priority. Whereas MSME stands for micro, small and medium enterprises, also shortened to SME for small and medium enterprises. However, MSME and SME loans are the same and are given to businesses that fall under these two categories. MSME loans are unsecured loans issued by banks or NBFCs to meet various business needs. Startup owners, small business owners, and women entrepreneurs on a short-term basis often use these loans. The term of MSME/SME loans ranges from lender to lender. There are some minimum eligibility requirements to reduce the risk for lenders. MSME loan schemes are used by business owners and enterprises to meet their working capital needs. Normally, most banks and NBFCs offer SME and MSME loans without requiring any collateral or any security from the borrowers. Classification of MSMEs criteria is now uniform for Manufacturing and Services Enterprises. The investment limit for the classification of MSME units has also been increased by the Government of India. As a result, more firms and enterprises can now avail of MSME schemes. The criteria for MSME classification have been changed from Investment to Investment and Annual Turnover. MSME (Micro, Small & Medium Enterprises), Manufacturing Enterprises involved in the manufacture or production of goods. If the industry plans on extending plants and machinery in the process of value addition to the final product.
Overdraft / CC
Overdraft is a credit facility in which the money can be withdrawn from the current or savings account, even if the account balance is zero or even below. An overdraft facility is a type of extension of the credit limit offered by banks. The sanctioned limit is said to be ‘overdrawn’. An authorized Overdraft limit is assigned for each customer depending on their relationship with the bank. The customer can withdraw money up to the assigned limit. Banks charge interest rates only on the utilized amount from the total sanctioned limit and are renewed every 12 months. Overdraft facilities can be used to meet working capital requirements and to meet business cash flow. Businesses often have to wait for payments from their clients and this results in delayed payments from their side as well. With the support of Overdraft in their current accounts, businesses can sign cheques for their clients beyond the available funds in their accounts. This prevents cheque dishonour and maintains the reputation of the business.
as well. There are several types of OD facilities such as OD against Salary, OD on Savings Account, OD against Time Deposits, Overdraft Against Equity, Overdraft Against House, Overdraft Against Fixed Deposit, and Overdraft Against Insurance Policy.
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