Here Is Everything You Need To Know About Getting A Loan For Business

by Rugved Agarwal Owner Being a businessman is exciting; right from running the finances to actually delivering a product or service is ridden with challenges that are fun to overcome. However, sometimes the enterprise needs some financing to help reach the heights that the entrepreneur has envisioned. If you, too, are looking to take a business loan to meet the new challenges of your work, then here are the types of business loans that you can opt for:

Business loan against property

This loan for business is a secured type of loan which means that you offer collateral in terms of any immovable property that you own against liquidity from the financial institute. Simply put, your existing property such as your house or other property acts like a backup repayment option in the unfortunate situation that you are unable to repay your loan amount back.

Loan for buying a new or resale property for commercial purposes

Imagine that you have come across the ideal office space for your business but you don’t have enough money to buy it. This is when you can get a business loan to help you buy this commercial property where soon your business will stand. This loan can be used to buy either a completely new property or a property that is being resold.

Buying of plot and construction on the same

If you have a vision of constructing your business right from scratch, then this loan is for you. Here, you not only buy the plot of land that will house your enterprise but also construct it using the loan from the financial institute.

Now that you know the three types of business loans that you could opt for depending on your needs, let’s take a look at the eligibility criteria and ensure that you are qualified to apply for a business loan. In order to apply, you need to be any one of the following:

1. Self- employed professional such as a lawyer, doctor, engineer

2. Self- employed businessman (individual) or having sole proprietorship

3. A partnership firm

4. An unlisted/ closely held/ private limited company

If you are any one of the above mentioned, then you are eligible to apply for a business loan. Next, you need to know the kind of documents you have to submit when you apply for such a loan. There are four categories of documents that you need to submit as part of your loan application. The categories are:

i. Proof of identity such as your PAN card or Driving License.

ii. Proof of residence such as Aadhaar Card or Ration Card.

iii. Proof of income such as six months’ primary bank statement

iv. Guarantor or co-applicant’s details

It has become easier to apply for a business loan online; however, ensure that you thoroughly go through all the terms and conditions of the loan before applying and understand the benefits of the loan.

With this, we hope that you now have the basic knowledge about how to go about applying for your business loan!

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Created on Nov 13th 2017 06:03. Viewed 497 times.

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