Optimal Business Loans in India

The ‘Make in India’ initiative by the Government of India has reaped high results for the economy. It has not only given an increased preference to the manufacture and consumption in India, but has also generated various opportunities for the development of a business. Entrepreneurs across the Country have been working hard to ensure that the maximum benefits can be generated from this initiative. In order to keep a business going, every entrepreneur requires funds from time to time. At the times of an emergency, it is essential to have adequate funds that will help the business function without any interruptions.

In order to provide the right capital and boost to a business, Banks and Financial Institutions offer small business loans in India, that aim to cater to the growing need of finance across different sectors. The loans are customized to provide an optimum solution for all the businesses. The small business loans in India are available for private company, public company, proprietorship or self employed. The business should be in existence for a minimum period of three years and the business should be profitable as per the industry norms. Thus, any individual owning a small business can approach a Bank or Financial Institution for the loan. Holding a satisfactory credit score helps in the approval process as well as gives an opportunity to avail special schemes or discounts on the loan. Small business loans are structured, in a different manner as compared to medium business or large corporations. These loans are customized to offer financial assistance to the small business and to provide flexible repayment terms.

The documentation required for the small business loan in India in India includes the profiles and KYC documents of the Partners and the Director. It also requires the company constitution and registration documents along with the qualification documents of the director. Further, audited financial statements for the last three years along with the projected statements for the coming years are required, this will provide an insight into the profitability of the business and also reflect on the repayment capacity of the borrower. With a positive credit history and a business that shows a higher profit generation capacity, the loan will be easily approved. It is important to note that the purpose of the loan should be determined before an application is made. The amount sanctioned will totally depend on the profile of the applicant and the form of business.

It takes about 10-15 days for processing the loan and if the borrower has a positive credit history, it may take lesser time for the approval. You can also avail special schemes in case of a positive credit score. The loan will help you grow your business and also allow you to take up the capital investments that you had postponed earlier. The entire process of application and approval is transparent and very simple. In order to obtain a quick loan to boost your business, all you need to do is apply for a small business loan at a reliable financial institution.