There are several best business loan companies operating in Mumbai. However, one cannot just pick a few names and tell these are the best business loan providers in Mumbai. The best loan product and loan company depends if the loan product is able to fulfill all your needs and requirement in the best way.
So, the top small business lenders are the ones who are offering you the services that can fulfill all your needs. And in order to zero in on the best lender, you have to consider a few factors about the business loan and the lender. Read on to know the top 3 factors to consider while searching the best business loan companies in India.
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Secured VS Unsecured Loans
You would surely know that there are two types of MSME loans- secured and unsecured loans. So, first, you have to determine what the best business loan is for you, in terms of collateral. If you have an asset to pledge, you can avail a secured loan. And if you do not have an asset to pledge, you must avail an unsecured loan.
So, the best loan product will depend on your this requirement. There are several loan lenders in India which offer both types of loans. You can avail any type of loan as per your requirement. But, once you have decided on this, you must consider the other 2 factors that we would be discussing further.
The eligibility criteria of one lender are different from that of others. So, you need to take into consideration the eligibility criteria of all the lenders and shortlist the lenders whose criteria you meet. The following are the usual criteria of every lender:
- Minimum Turnover of INR 10 Lacs in the last 12 months.
- Last year ITR of more than INR 1.5 Lacs.
- Either house or business premises should be owned.
- The business place should be separate from the residence.
- Business vintage (operations) for at least 2 years.
Documents for Loan
You have to further shortlist the lenders from the selected ones on the basis of their documentation requirement. Choose the lender who is asking for documents that you can provide. Also, some lenders require a long list of documents while some require minimal documentation. So, you can also shortlist the lenders who offer loans at minimal documentation. The following is the list of documents required:
- PAN card
- Last 12-months bank statement
- Last 2-3 year ITR
- Business place address proof
- Residence address proof
The above mentioned 3 factors are the most important factors to determine the best business loan companies in India. You can also compare business loans on the basis of the EMIs- you can use a business loan calculator to determine EMIs. And in order to qualify for a business loan in Mumbai, you must have a good CIBIL score, good business turnover, and business vintage of at least 2 years.
If you want to expand your business or increase your sales and profit, you can also register your business at the Connect App by ZipLoan for free. By registration on the e-marketplace, you can get connected with more than 60k businesses all over India and directly sell and buy products. You can also increase your business network, discover new business opportunities, and build connections.