Your business has been running with full glory for quite a few years. Now, it’s high time you think of doing something that can take it to the next level. What better way to achieve that than business expansion!
Growing your business is inevitable after you have tapped all the domestic markets. Moreover, with changing market conditions and consumer tastes, you will have to adapt accordingly and make your business more versatile.
Integrating new technology into the setup or expanding into a larger enterprise, as a business owner, you will need to do both. You will also need funds or finances to get this done.
Precisely for that, financial institutions in India offer an online business loan. These loans can provide you with ample funds necessary for your company’s growth.
Some of the reasons why these loans are the right options for your business:
- Collateral-free – avail without providing any asset
Business loans are unsecured, and hence, you don’t have to provide any collateral for availing them.
On the other hand, secured loans, an alternative to these, require you to mortgage or hypothecate an asset. These loans come with longer tenures and low rate of interest. However, lenders may confiscate your asset in case you default the loan. The lender will liquidate it to settle the dues.
So, unsecured business loans are safer when it comes to getting financing.
- Large financing option – get up to Rs. 30 Lakh
Lending institutions can provide you with an online business loan of up to Rs. 30 Lakh. You can use this amount for any business purpose in an unrestricted way.
You can use it to restock your inventory and ensure that your production never stops. Machinery also contributes significantly to your manufacturing, and you may need to upgrade or purchase new ones. You may also require additional working capital to ensure all the daily expenses are met. For expansion, you may need to open another production unit or office in a different location.
An unsecured business loan can provide the necessary investment for all of the cases mentioned above. They are also made affordable owing to the competitive business loan interest rate.
Another reason why owners opt for these loans is debt consolidation, although it may not have any direct connection with expansion.
- Minimal documentation – provide only a few documents
You have to provide only a few documents when applying for an online business loan. Financial institutions mostly require you submit KYC (Aadhaar, PAN, Voter ID, Passport, Driving License, etc.), address proof (electricity bill, telephone bill, gas bill, water bill, etc.), and bank account statements.
You will also have to provide proof and existence of your business. Some of the documents for the same can include:
- Trade license
- GST certificate
- Certificate from Registrar of Companies
- Memorandum of Association
- Articles of Association
- RBI/SEBI Registration Certificate, etc.
- Quick approval – get your loan within a day
You can get your hands on the loan within 24 hours owing to a simple approval process. Companies like Bajaj Finserv provide pre-approved offers that make availing finance even more rapid and uncomplicated.
Pre-approved offers are not only available with business loans but also with personal loans, mortgage loans, and several other financial products. You can check out your pre-approved offer by providing only a few essential details.
- Simplistic eligibility – fulfil only a handful of criterions to qualify
The business loan eligibility criterions are another reason why it is the right option for your company.
Firstly, you have to be between the ages of 25 & 55 years. Secondly, your business should have a vintage of at least 3 years. Thirdly, you have to file income tax returns for at least the past 1 year. Lastly, you need to audit your business turnovers of the previous 1 year by a CA.
Note: Most lenders may also need you to have a credit score of 750+ as a business loan eligibility criterion.
Owing to these reasons mentioned above, business loans can be the right option for your company. Lenders provide various types of such loans that can explicitly cater to your needs. Some examples are working capital loans, machinery loans, SME and MSME loans, and business loans for women.