What are the different types of business loans?

You can only build so much of a business without feeling the need for a substantial amount of capital. At some point or the other, every business needs a monetary boost. This is why business owners are always in search of the best business loan in Delhi and other metro cities of the country. And these days, one of the best options for borrowing a loan is NBFCs (Non Baking Financial Companies). They disburse the loans more easily, efficiently and often at a lower interest rate compared to the traditional banks.

Before you make your decision however, to avail the loan, you should conduct a thorough research to ensure you’ve evaluated the best of options. You can acquire an unsecured business loan or you can go for a loan against property. Remember that since that latter is a secured loan, it can be availed at a lower interest rate with lesser background checks.

Now there are different types of loan when it comes to deciding on a business loan in Delhi. If you aim is to finance the everyday operations of your business, you should prefer going for a working capital loan. This one is a short term loan and you can utilize it to cover infrastructural costs, paying for raw materials, and paying advance money to suppliers etc. You can also utilize this loan as cash cushion and use it to manage fluctuation in sales.

If what you need is certain machinery or equipment to advance your business, then you should prefer going for a machinery loan. If you’re into an industry that requires heavy expenditure on machinery – such as the packaging industry or assembling industry – then you may need this sort of loan.

If your aim is to expand your business and invite capital investments, then you’d be better off going for capital loans. There are plenty of NBFCs that offer such loans to companies belonging to small scale industries. Moreover, these loans are offered at reduced interest rates - which make them even more enticing.

If you do, however, belong to the population that is habitual at using credit cards and if you have been able to maintain a good credit score, then you can go for flexi loans. The specialty of these loans is that the lender sanctions them for a predetermined time and the person who is borrowing can withdraw at anytime he likes. The best thing is that borrower is supposed to pay interest only on the amount that he has withdrawn.

These were the different types of loans that you should know about if you’re planning to get a business loan in Delhi.

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Created on May 27th 2020 04:24. Viewed 243 times.

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