There are many loan lenders that offer loans for self-employed in Varanasi at attractive interest rates and with other features. However, the number of available lenders increases the dilemma of choosing the right lender between them. So, it turns difficult for the self-employed individuals in Varanasi to find the most suited loan product for themselves.
Deciding the kind of business loan in Varanasi that will suit you depends on a number of factors. These factors include borrower’s profile, the amount required, loan tenure, repayment tenure, interest rate, prepayment options and charges, and the requirement for collateral/security. Notably, the loans for self-employed in Varanasi are classified under the following categories:
- Self-employed individuals
- Self-employed professionals
- Businessmen
Now let’s discuss the factors in depth that will help you choose the right small business loan product:
Table of Contents
Borrower’s Profile
also read: what are the ways to improve business loan eligibility?
The borrower’s profile means his financial credibility. Here, the important factor is the financial creditworthiness of the borrower which helps in determining the amount he can avail and repay easily. The factors that are considered here include the CIBIL score, business turnover, ITR filed, and bank statements. All these factors help in determining the eligibility of the borrower – what he can avail and easily repay.
Collateral/Security Requirement
also read: why business loans without collateral are best for small business?
There are two types of loans available in the market- collateral or collateral-free business loans. Firstly, you need to decide if you want to pledge an asset or not. If not, you can avail an unsecured business loan. However, if you want to, you can avail a secured loan. So, according to your need, search for the loan lender in Varanasi.
Amount Required
also read: get unsecured business loan from ziploan
Not all loan lenders in India have the same loan ticket size. Some offer the loans of Rs. 1-5 lakhs while some only cater to needs of big business owners with the loan ticket size of Rs. 20 lakhs to 5 crores. To choose the best personal loan for self-employed, you need to ascertain your requirement and search for the loans for self-employed with the same loan ticket window.
Loan & Repayment Tenure
also read: how to plan loan repayment in the most effective manner?
The loan and repayment tenure determines the time period through which you will be able to repay the loan amount. It can be 12 months, 18 months, 24 months, or even more. Here, you need to judge the revenue you will be able to generate in the coming months and choose the best repayment loan tenure according to your budget.
Interest Rate
also read: what are the factors that affect business loan interest rate?
Interest rate, undoubtedly, is the most important factor considered by most borrowers before availing a business loan in Varanasi or even in other city or country. You need to determine the interest rate that you will be able to afford. And then shortlist loan lenders in the Varanasi accordingly.
Prepayment Options & Charges
also read: what are all the fees & Charges applicable on business loans?
The business world is the world of uncertainties. So, there may be times when you would generate more revenues than expected. And then you would like to get rid of the burden of the loan and foreclose the loan account. Many lenders charge prepayment charges. So, it is important that you know the prepayment charges in advance to be prepared for situations like these. Nonetheless, you can also shortlist on the lender who does not charge any prepayment penalty like ZipLoan.
Now that you know how to choose the best loans for self-employed in Varanasi, you can choose the best loan product and take your business to new heights. Additionally, you can also register your business for free at the Connect App by ZipLoan to build your business network. Through the e-marketplace, you can create a business profile, list your product, find business, discover new business opportunities, and build connections.
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