Commercial Loan - Loans That Take Care Of Your Business Expansion Plans

What is a commercial loan?

Commercial loan is availed by businesses to add to their working capital. This kind of loan helps businesses to set up new processes, meet operational expenses, build new infrastructure and buy new machinery. It is usually provided on a short-term basis; however, commercial loans are not offered to individual consumers. It can be both secured and unsecured. This short term loan helps companies to fulfill their financial requirements. When commercial borrowers apply for these loans, they need to furnish annual as well as monthly financial statements. The items which are purchased with the loan proceeds need to have insurance coverage. Commercial loans enable companies to pay for their capital expenditures and pay any unexpected operational expenses.

Dhanvarsha Finvest Limited and convenience

Availing business loans from Commercial loan companies like Dhanvarsha Finvest Limited (DFLTD) offers convenience, as they provide their customers fast and adequate financing. This helps businesses with commercialization and property acquisition and the loans are secured in nature. Dhanvarsha understands and lay emphasis on each and every customer’s requirements and provide customized solutions. They support the customers since the beginning of the loan disbursement process till the end. This helps them to respond to customer’s emergencies and requirements efficiently. Dhanvarsha Finvest Limited (DFLTD) is a Reserve Bank of India registered NBFC company providing financial assistance to LMI customers and small businesses.

Eligibility for Acquiring Loan

The following entities are eligible to acquire loan.

• Private Limited companies, Partnership Firms engaged in trading, manufacturing and services, proprietors and self employed individuals.
• A particular business entity should have a minimum turnover of Rs. 40 lakhs.
• The person taking the loan should be in the current business for at least 3 years with an overall business experience of 5 years.
• The business should be making profits for the last two years.
• The Minimum Annual Income (ITR) of the business should be at least 1.5 lakhs per annum.
• The age of the applicant should be at least 21 years at the time of applying for the loan. The age of the applicant should also not be more than 65 years at the time of maturity of the loan.

Calculation of EMI

In most of the cases, a loan is provided as a lump sum amount. This amount needs to be repaid in fixed installments along with the interest accrued within the tenure of the loan. The installment amount which is repaid every month to Commercial loan companies is known as Equated Monthly Installment or EMI. To calculate the EMI, one needs to enter the following details in the EMI calculator:

1. Loan Amount: The amount to be taken as loan should be entered in the space given for loan amount in the EMI calculator.
2. Rate of interest: The next step is to enter the rate of interest applicable on the loan into the calculator.
3. Tenure: The final step is to select the tenure of the loan and the EMI gets calculated automatically.

Apart from the EMI, the EMI calculator also calculates the total interest payable and the total amount to be paid including the principal and the interest.

Reema Sharma is a professional content writer specializing in blogging, press releases. I would like to share some knowledge by that Articles.