Business loans are derived to help business forms those are currently planning as new and for existing ones too. Many business firms or industrial units or entrepreneurs or professionals are eligible to apply for these loans. This loaning procedure from banks and financial firms are come in multiple forms such as arranging loans, supporting business through letter of credit, bank guarantees and through some more additional facilities. There is a strict and standard procedure associated well with these loans. Generally, this loan can be availed from Rs.25, 000/- to a maximum of the amount that is decided by the bank or financial firm basing up on the business model and product. Very often, business loan to tune of small amount will not require any security, but major loan amounts definitely deserves collateral from the borrower.
Professionals are offered business loans nowadays in the form of professional loans for self-employed individuals. This facility is at present available to engineers, CAs, doctors, company secretaries, architects and some more professionals. These professional loans are available up to 25 lakhs basing up on the type of business and professional’s credibility in the industry. Most of the business loans for professionals come with tenure of 5 years for repayment.
Generally, these loan applications will attract 1% loan amount as processing fee, which will be deducted from the loan while sanctioning. There is a chance to waive collateral in most of these loan applications, but final authority to take decision on this aspect is with bank or financial firm. In some cases, where the business is existing and applied for loan, then there is a chance for the bank or financial firm to ask for collateral in the form of mortgaging the business, or any other property like vacant plot or house. Also, there are some more options available for providing collateral such as term deposit, government bond, shares and bonds those are in the name of the business owner, national saving certificate, life insurance policy and some more.
Professionals are offered business loans nowadays in the form of professional loans for self-employed individuals. This facility is at present available to engineers, CAs, doctors, company secretaries, architects and some more professionals. These professional loans are available up to 25 lakhs basing up on the type of business and professional’s credibility in the industry. Most of the business loans for professionals come with tenure of 5 years for repayment.
Generally, these loan applications will attract 1% loan amount as processing fee, which will be deducted from the loan while sanctioning. There is a chance to waive collateral in most of these loan applications, but final authority to take decision on this aspect is with bank or financial firm. In some cases, where the business is existing and applied for loan, then there is a chance for the bank or financial firm to ask for collateral in the form of mortgaging the business, or any other property like vacant plot or house. Also, there are some more options available for providing collateral such as term deposit, government bond, shares and bonds those are in the name of the business owner, national saving certificate, life insurance policy and some more.
Image courtesy of Mister GC at FreeDigitalPhotos.net
Business loans are definitely a great advantage while planning a new business keeping in mind the required investment and expenditures before. It is always essential to check all the available loan options before in order to finalize a best one for you. Also, interest rate is also should be compared in a way the less interest loan can be selected for your business. It is always imperative to have an attentive approach while selecting right business loan and considering more time for this selection is the best option here for all. Government is nowadays encouraging young entrepreneurs with so many offers such as collateral waiver, interest rate waiver and some more. Check for the available waiver options without fail for your business loan too.
Business loans are definitely a great advantage while planning a new business keeping in mind the required investment and expenditures before. It is always essential to check all the available loan options before in order to finalize a best one for you. Also, interest rate is also should be compared in a way the less interest loan can be selected for your business. It is always imperative to have an attentive approach while selecting right business loan and considering more time for this selection is the best option here for all. Government is nowadays encouraging young entrepreneurs with so many offers such as collateral waiver, interest rate waiver and some more. Check for the available waiver options without fail for your business loan too.
.jpg)
Post a Comment