As a business owner, it is important to have easy access to funds. This way you not only expand your business but also attain a strong market position. One of the best ways to secure these funds is by taking loans from credible financial institutions. Usually, these institutions offer loans with flexible repayment terms. This allows you to repay over a period that suits your business cash flow. Additionally, they provide competitive interest rates, which lowers the cost of borrowing.
By choosing loans from reputed organisations, you can grow your business without putting too much pressure on your finances. In this article, let’s see how can help you scale your business.
Key features of business loan
Below are some key features of business loans:
1. No part-prepayment charges on the Flexi variants
Therea are three types or variants of business loans:
- Flexi hybrid loan
- Flexi term loan
- Term loan
On the flexi variants, there are no part-prepayment charges. You can easily repay part of your loan anytime without paying extra fees. This gives you flexibility to reduce your outstanding loan balance and lower interest costs whenever you have additional funds.
2. Get a loan amount up to Rs. 80 lakh
You can borrow from Rs. 2 lakh to Rs. 80 lakh. This range makes it suitable for both small and large business needs.
3. Repayment tenure of up to 8 years
You can repay the loan over a flexible tenure, which ranges from 12 to 96 months. This allows you to match your repayment schedule with the cash flow of your business.
4. Quick disbursement within 48 hours
Once your loan is approved, the funds are usually deposited in your account within 48 hours. This quick access to capital helps meet urgent business needs without delays.
5. No hidden charges
All the charges are clearly stated upfront in the loan document. This makes sure you are fully aware of what you are paying from the beginning.
6. No collateral required
Some NBCs does not require you to provide any property or assets as security for taking business loans. This makes it easier for small business owners or startups which do not have valuable assets but need quick access to funds.
7. A loan for all business goals
Business loan can be availed of and used for various purposes like:
- Expanding your business
- Buying new machinery
- Purchasing any gadget from offline /online store
- Increasing working capital
- Adopting digital technologies
Such a variety gives a lot of flexibility to business owners as they can meet multiple business requirements with one financial solution.
Get a business loan in three different variants
You get three different types of business loan options:
Type I: Flexi hybrid loan
This type of loan gives you the flexibility to borrow and repay as needed within a pre-approved limit. You can withdraw and repay multiple times. Interest is charged only on the amount you have used and not the entire limit.
Additionally, for the first part of the loan, you pay “interest-only EMIs”. This makes your repayments lighter initially. Since there are no charges for part-prepayment, you can repay early without extra fees. This variant is ideal for those who need funds over time and want control over their repayment schedule.
Type II: Flexi term loan
This option also allows flexible borrowing and you can repay within a fixed loan limit. However, unlike the Flexi hybrid loan, the EMIs here include both principal and interest. It’s more flexible than regular term loans and allows you to repay early without penalty.
Type III: Term Loan
This variant involves borrowing a fixed sum for a specified duration. You have to pay regular EMIs that cover both principal and interest. This option is different from the above types as there is no limit from which you can borrow repeatedly. Instead, you receive the full loan amount at once and your repayment schedule is fixed. Also, you must repay through EMIs without the option for early prepayment.
Eligibility criteria
To apply for a business loan, you need to meet specific criteria. Your age should be between 24 and 80 years, with co-applicants or guarantors being at least 18. Also, the loan maturity age limit is 80 years. Furthermore, you must be:
- Self-employed
- Have been running your business for at least three years
- Have a CIBIL score of 685 or higher
- An Indian citizen
Some common documents required to apply are common KYC documents (Aadhar, Passport, Voter ID, etc.) and PAN card. Also, you will be required to submit proof of business ownership and a few other financial papers.
NBFCs helps business owners by providing business loans. With flexible options like the Flexi hybrid loan, flexi term loan, and term loan, you can borrow and repay based on your business needs. They offers competitive interest rates. There are no hidden charges and usually loans are disbursed within 48 hours.
*Terms and conditions apply.
