A business loan is an ideal option for a manufacturing business to increase production and thereby profits. Nonetheless, while giving all their attention to the core business, the owner of the manufacturing unit often finds the business loan application and approval process distressing and time-taking.
So, let’s take a look at how to avail a business loan for manufacturers with these 4 easy steps.
Choosing the Best Financing Option
The first step to avail a loan for manufacturing unit is choosing the lender of your choice. The best business loan financing company will depend on your needs. For instance, if you require a secured business loan, then banks would be the best option for you. And in case you are looking for an unsecured business loan, it is mostly offered by NBFCs.
The selection of the lender will depend on some other factors as well:
- Loan eligibility criteria
- Loan requirements
- And, loan interest rate
Applying for Easy Business Financing for Manufacturers
After finalizing the best manufacturing business loan provider, you will have to apply for the loan. The business loan provider may allow you to apply for a business loan for manufacturers online or offline.
In case of online application, all you need to do is visit their website and apply for the loan for manufacturers. You must duly fill the application form and submit. Also, you can upload the soft copies of the documents required for the loan as well.
And if you are applying offline, you need to visit the loan lender’s office in person and get the business loan application form. Again, duly fill the application form and submit to the lender’s representative. You must also submit the hard copies of all the required documents.
Get Business Loan Approval
It is imperative that you know the entire business loan eligibility criteria of the lender and are fulfilling it. The important eligibility is the CIBIL score— the minimum CIBIL score for a loan approval is 750. So, it is important that your CIBIL Score should be more than 750. Also, high CIBIL Score can significantly bring the rate of interest for a business loan down.
Business Loan Disbursement
The loan disbursement process will depend from one lender to another. While one may disburse the loan within a few working days, another may take a month’s time. The usual process of loan disbursement is the signing of the contract with the lender and deciding on the loan tenure and EMI. Noteworthy, you must read all the important terms and conditions in detail before signing the contract.
ZipLoan offers the best business loan for manufacturers in India on easy terms and conditions. All our unsecured business loan products are offered online and the borrower is not required to visit us in person. Also, our business loan interest rates are the best in the market and we disburse the business loan within a few days after the borrower signs a contract with us.