Grow Your Business With Small Business Loan in India

by Hero Fincorp Loans and Small Business Financing

Every type of business requires financial aid in one form or the other. In order to expand the business or to reach out to a wider geographical market, there will be a requirement to put in additional funds. It is not possible for a business owner to manage the operations cycle and expand the business. This is where small business loans come into play. Banks and Financial Institutions offer quick and hassle free loans to business owners that help the business reach its potential. A popular choice amongst entrepreneurs, small business loan in India is the best way to grow your business.

Small business loans can be applied for by individuals, public company, private company or proprietorship. The applicant should have completed at least three years in the business and the business should be profitable as per industry norms. Individuals who have repaid their previous loans on time can enjoy a higher likelihood of the loan approval. They will have a positive credit score which will help in the quick processing and approval of the loan. Small business loans have tenure of 12 months to 48 months, depending on the loan amount and the applicant’s profile.

Individuals need to fill the application form and provide complete documentation for the processing. Documentation for the application includes identity proof, address proof, signature verification, photographs, audited financial statements and pro forma income statement and balance sheet of the business. Based on the profile of the applicant and the credit history, Banks and financial institutions will determine the amount of loan and the tenure for the same. Small business loan in India has a low interest rate and flexible repayment tenure which makes it an ideal option for business owners. The loan helps business achieve their long term financial goals and take the business to new heights.

There is also an option to prepay the loan in the future, thus providing all the flexibility to the borrower. Prepayment of loan will save you from the interest payments in the coming months. You can determine the approximate amount of EMI payable by you using the EMI calculator. The calculator is available online and will require you to provide details about the loan amount and the tenure. Based on the interest rate for the same, the calculator will determine the amount of EMI payable by you. Consider the EMI as a regular monthly outflow before you apply for the loan. The business will have to have regular inflow of cash in order to manage the outflows. Apply for the loan only when you are sure that you will be able to repay the EMI on time. Default in the repayment of the same will have an impact on your credit score and will also have an impact on your future loan applications. If you have mortgaged a property or financial asset with the lender, you might end up losing it incase of consistent default in the EMI payment.