An entrepreneur loan is an excellent option to accelerate the growth of the business. Whether a start-up or an old business, every business requires funds to carry out day-to-day activities and for the growth of the business. The entrepreneur initially invests all his savings in the business. But with time, his funds dry up and he looks forward to avail funds from other sources. In situations like these, the best source is the business loan lender and the ideal option is an entrepreneur loan.
The money availed under business loan can be used for a number of purposes—for the business expansion or to stock inventory. It can also be invested for marketing. Nonetheless, first, the business owner must know how to avail an entrepreneur loan online. Read on to know 5 easy steps to apply for a loan for business.
Table of Contents
Know your Requirements
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When we talk about requirements, it means to know the amount that you require since every lender has a different ticket window. The other important things that you need to know before applying for a small business loan for an entrepreneur are:
- The terms and conditions that you are willing to fulfill.
- If there is any security that you can offer or you want to avail an unsecured business loan.
- CIBIL score- it is important for you to know your score and according to search for the lender. If your score is below the requirement of the lender, you must work towards improving it.
- Know the loan tenure that suits your pocket—12 months, 18 months, or 24 months.
- The interest rate you are willing to pay.
Search lender
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The next step is to search for the right lender according to your needs and requirements. Now that you know your needs and the terms and conditions that you can fulfill, you can search for the lender. All you need to do is create a checklist with all your requirements and see if the loan lender meets them all. Here, the best entrepreneur loan lender would be the one who gets all the ticks in the checklist. You can also choose between a bank and an NBFC. The following are the points on which you can compare both lenders:
- Online/offline application
- Requirement for security
- Flexible loan tenure options
- APR- annual percentage rate
- Documentation requirement
- Loan disbursement time
- CIBIL requirement
Apply Loan Online
also read: why online lenders are the best choice for business loans?
After finding the best lender, you have to next apply for a business loan for an entrepreneur. Since most lenders offer online loan applications, you can visit the lender’s website or also download their mobile application available on the Google play store. When filling the loan application, you need to fill your personal details and business information. And once you fill all the information, next you have to submit documents.
Upload Documents
also read: the a-z guide to all documents required for a business loan
The online loan lenders offer online document submission as well. You can upload the soft copies of the documents online. We would suggest you upload the documents in PDF format as it will allow the lender to process your application faster. And thus, the loan amount will be disbursed fast as well. After you upload the documents, next the lender will process your application.
Apply for Working Capital Loan
Approval
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A representative from the lending organization will process your entrepreneur loan application further. He would process the application and verify the supporting documents. If required, he would also visit your office. Nonetheless, the representative will always keep you updated through SMS and e-mail. If your loan application is approved, the sanctioned loan amount will be credited to the bank account you have provided.
Applying for loans for small entrepreneurs is not a hectic task but just involve 5 easy and simple steps. And now that you know these steps, you can avail an entrepreneur loan easily. There are many lenders for a loan for entrepreneurs in India, you can shortlist one according to your requirements. Also, to grow and expand your business, you can register your business and product/service at the Connect App by ZipLoan. The App allows you to connect with traders, manufacturers, wholesalers, and retailers in India and build your business network.
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