It is always a great idea to start a business and a person having the business acumen and the ability should start his/her venture. Albeit it is also imperative to understand that with a good business idea, proper planning is important and the first step of planning is arranging funds for the start-up, hence capital is an utmost necessity for any size of start-up whether it is micro, medium, or large.
Arranging funds for a start-up is a daunting task that makes a person knock on many doors at times. The majority of the times these entrepreneurs do not know the right place from where they can receive the funds
In this blog, we will get to know the ways to get a small business loan for a start-up
Search for Angel Investors
Few people have surplus money with them and they invest in the start-ups which they find interesting and have a good scope in future. The risk is high in taking funds from angel investors as their purpose for investing in good returns for their funds
Funds Raise through Crowdfunding
It is an open-source of funding where the entrepreneur gets funds from multiple investors through social networking platforms. There are also online web portals that raise funds for various purposes such as charity, social causes, child education, events, etc.
This type of funds are generally given to the social entrepreneurs whose goal for starting up is the betterment of the society rather than earning profit
Business Loans under Government Schemes
Several schemes have been introduced by the Government of India for start-ups, enterprises, SMEs, MSMEs, women entrepreneurs, unemployed youths, people living in rural, urban, and semi-urban areas.
Some of the popular schemes launched by the Government of India are MUDRA Loan Scheme, Start-up India, and Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE), Stamp up India
Business Loans from Banks
Banks are considered to be the first source for a start-up business to arrange funds as they are considered a reliable and easy mode of receiving funds. Banks provide loans to start-ups in two ways – term loans and working capital loans.
Predominantly every public and private sector bank offers business loans for start-ups. However, things like interest rates, loan amount, and repayment period vary from bank to bank.
Business Loans from NBFCs
NBFCs are the best alternatives for the banks as they provide business loans quickly and in a hassle-free manner even when the credit and the banking history is low.
However, the loan is provided at a higher rate of interest. Ziploan is the best example for the NBFC that provide quick and unsecured business loan up to 7.5 lacs.
Business Credit Cards
It has been adopted recently due to the mushrooming of the start-ups in the Indian diaspora. A business card can be easily utilized for smaller amounts and can if given on time also save themselves from any penalty.
Peer-to-Peer Lending
Popularly known as social or crowd lending, this type of lending eliminates middlemen (financial institutions). The lending is done on the online platforms like websites or apps.
The rate and the terms are already set. The borrowers get the funds at a better rate than the traditional banks based on the creditworthiness of the applicant.
Overdraft Facilities With the Current Account
This is the popular option where the borrower can withdraw money from the current account when the balance is zero. It is similar to availing loan from the financial institutions. To take advantage of the facility one has to have the approval from the bank
Business Loan from ZipLoan
ZipLoan offers different business loans, ranging from working capital loans and capital loans to the term loan and machinery loan to small and medium enterprises.
It aims to enable MSMEs to meet their capital requirements and grow. It properly understands the business loan purpose for small businesses and therefore, have tailored the business loan products as per their needs.
Top Features of ZipLoan Unsecured Business Loan
- Easy Application: The borrower can easily apply for a business loan online and submit the soft copies of all the required documents on our website or App, ZipLoan.
- Quick Processing: This is one of the major USPs. The holistic credit evaluation process, ZipScore, evaluates the business loan application form in a short period.
- Range: Our business loan products range from INR 1-7.5 Lakh which can be repaid easily over 12-24 months. The business loans are offered at attractive rates of interest and can be repaid in easy monthly instalments. One can use the EMI calculator and choose the best EMI option for the repayment of a business loan.
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