Business Loans Are Offered To Small And Medium Enterprises Towards Working Capital, Expansion, Or Modernization Of Existing Business. It Could Be Either Secured Or Unsecured. The Idea Is That If There Is Opportunity For Growth At Acceptable Risk Levels The Banks Will Finance. Loan Amounts Offered Could Vary Between Rs.5 Lakh To Rs.500 Lakh.
Interest Rates Of Personal Loans • ING Vysya Special Schemes At 13.50% To 18.25% • HDFC Bank Offers Special Rates Of 13.99% To 20.00 • Kotak Mahindra Offers Loans At 13.60% To 18% • ICICI Bank Personal Loans Offered At 13.49% To 17.50% Personal Loan Rate Of Interest Depends On Following Terms
The Income Of The Borrower And Repayment Capacity – Higher The Income, Lesser You Tend To Be A Defaulter For The Bank. Hence, You Get Some Discounts When It Comes To Personal Loan Interest Rates.
The Credit Score Of The Borrower – It Goes Without Saying That Your Credit Worthiness Determines Majorly What Should Be The Interest Rate For Your Personal Loan. The Better The Score, More You Are Credit Worthy In The Bank, And Hence, Lesser Rates Of Interest. On The Other Hand, A Person With Poor Credit Score Calls For A Higher Rate Of Interests For The Lending Institution Considers The Borrower To Be Less Credit Worthy.
The Type Of Personal Loan – Secured Personal Loans Come With A Reduced Rate Of Interest Since They Have A Collateral As A Guarantee. On The Other Hand, Unsecured Loans Have Higher Rates Of Interests.
Negotiating Ability Of The Borrower – Better You Negotiate With The Lending Institution On The Basis Of Proper Documents, Income, And Credit Score, Lesser The Interest Rates That You Can Have.
Relationship With The Bank Or Lending Institution From Where The Borrower Intents To Take The Loan.
Personal Loan Repayment Terms.
The Loan Amount Applied For.
Business Loan
Business Loans Are Offered To Small And Medium Enterprises Towards Working Capital, Expansion, Or Modernization Of Existing Business. It Could Be Either Secured Or Unsecured. The Idea Is That If There Is Opportunity For Growth At Acceptable Risk Levels The Banks Will Finance. Loan Amounts Offered Could Vary Between Rs.5 Lakh To Rs.500 Lakh.
Business Loan Can Be Availed By Self-Employed Individuals, Partnership Firms, Private Limited And Limited Companies. The Funds Can Be Used For Business Expansion, Working Capital, Renovating Your Office, Buying New Property Or Equipment Or Personal Requirements Like Child's Education, Marriage Or Home Renovation Etc.
The Eligibility Criteria For Business Loan
The Eligibility Criteria For Business Loan Professionals Vary From Bank To Bank. However, The Standard Norms Followed By Business Loan Lending Institutions In India Are:
· Should Have Indian Citizenship. · Age Of Applicant: Min 21 Years & Max. 65 Years At The Time Of Loan Maturity. · Minimum Annual Income(ITR) Of INR 1.5 Lakh Per Annum · Business Must Be Profit Making For The Last 2 Years. · Should Have A Minimum Work Experience Of 3 Years In The Same Business. Self Employed Non Professionals Should Have 5 Years Of Total Work Experience With 4 Years In The Current Business. · Private Limited, Partnership Firms, And Deemed Limited Companies Are Eligible For Business Loans. · Residence Or Office Should Be Either Self Owned, Rented Or Company Provided. Documents Required For Business Loan 1. Proof Of Your Address: Copy Of Aadhaar Card/Telephone Bill/Electricity Bill/Passport. 2. ID Proof (PAN Card – For Company /Firm/ Individual). 3. Proof Of Your Identity: Copy Of Aadhaar Card/Passport/Voter’s ID Card/Driving License. 4. Proof Of Continuity Of Business 5. Bank Statement 6 Months 6. Latest ITR Of Co-Applicants – For Last 2 Years 7. Ownership Proof Of Residence Or Office 8. Board Resolution (If Pvt Ltd Co. Is Co-Borrower/Partnership Authorization Letter {If Partnership Firm Is Co-Borrower} 9. ITR & Statement Of Computation Of Income – For Last 2 Years 10)CA Certified Or Audited P/L Acc Statement And For >40 Lacs Cases Audit Report Along With Schedules Of P&L And Balance Sheet – For Last 2 Years
Benefits Of Business Loans
Business Loans Come With A Myriad Of Benefits Over And Above The Lucrative Opportunity To Fulfill Your Dreams Or Meet Temporary Crunch Situation.
Business Loan Professionals Are Available From INR 3 Lakh To 15 Lakh, Depending On The Income And Repayment Capacity Of The Borrower.
Don’t Require Any Collateral Or Guarantor For Approval.
Ensure Quick Processing, Sometimes Within 72 Hours, Depending On Proper Submission Of Documents To The Lending Institution.
Flexible 12-60 Months Repayment Period.
Easy Repayment Options Such As Account Debit, Post Dated Checks, And Electronic Clearing Services.
Simple And Minimal Documentation.
Lucrative Rate Of Interests.