For Micro, Small, and Medium Enterprises, there are several options present in the market to get an MSME loan sanctioned. However, the situation was different a few years back. MSMEs had to rely solely on banks to get a business loan approved. And everyone is well aware of how tiring and difficult it is to get a business loan from banks.
It becomes a lot tougher for small and medium-sized businesses who don’t always happen to afford to put any of their assets as collateral against the loan – a prerequisite for getting any bank loan. To add to all that, the entire process is very complicated and lengthy. The eligibility criteria and paperwork it requires is a task in itself. All of these factors meant that the MSMEs often got discouraged whenever it came to getting a business loan approved.
But the scenario is different at present! Several other players in the market have made availing SME loans in India a lot easier. Non-Banking Financial Companies (NBFC), in this context, have been a major influencer. These companies are working towards understanding the problems faced by the MSMEs in India. They have also been providing solutions with their customer-oriented loan schemes. They offer collateral-free business loans to small businesses and have ensured that having a collateral asset is no more a deciding criterion when it comes to getting loans approved.
Getting a business loan approved from NBFCs is a very easy and swift process. The eligibility criteria are not too tough to fulfil. Once you’re eligible, you can get the business loan approved sitting at your home as the entire process can be carried out online. Apply for your application online, upload your documents, wait for the verification process, and get the funds within a few working days.
How to apply for an MSME Loan with NBFCs?
Understanding your Business Requirements
The first and most important aspect of getting any business loan is to understand what the requirements of the business are? It will then tell you which type of loan should you go for. It can be a working capital loan, machinery loan, small business loan, and so on. It also helps you in convincing your lenders as they will be aware of how the loan amount is going to be utilized.
Find out Lending Options
If the number of options present is an advantage, it is also a headache to choose the best lender for the business. There are several NBFCs in the market, offering different MSME loan schemes, and any business must carry out a good amount of research to identify the best NBFC for your business. Apart from the rate of interest, a business must also understand how customer-friendly the policies are, which slightly varies from one NBFC to another.
After completing the research and reaching a decision regarding the particular NBFC you are going to go for, visit their website and fill in the application form online. Be careful while filling up your application form and make sure you give all the right information, or else, it might reduce your chances of getting the loan.
Keep your Documents Ready
After submitting the application form, you would be asked to upload some basic documents for the verification process. Make sure you have all of them ready beforehand so that you can get your business loan approved as fast as possible. Upload the PDFs of the documents and wait for the verification process to complete.
Get your Funds
Once the documents are verified, and your application is approved, the funds get credited in your account within a few working days. Now, all you need to do is smartly utilise the amount to be able to pack the business loan amount in time.
Opportunities are aplenty, but you need to be smart enough to capitalize on them. Make sure you use the business loan amount in an efficient manner which ensures the growth of your business along with the repayment of the loan in the stipulated time.