Every business owner wants to avail a loan at the best business loan rates in Pune. However, there are several factors that determine the interest rates for a business loan. Such as the amount availed, loan tenure, repayment capability, business turnover, and creditworthiness of the borrower. A business loan can be availed from a bank, NBFC, or an online lender.
However, if you are looking to avail a quick business loan without collateral, you must apply for it with an NBFC or online lender. They both also offer the facility to compare loans and use the eligibility calculator and EMI calculator to take the best decision. Also, you can apply for a loan in just 3 simple steps.
Nonetheless, let’s just take a look at the factors that will help you get the best business loan rates in Pune:
Improve Credit Score
also read: how to maintain credit score as an sme?
Firstly, identify the factors that are having a negative impact on your CIBIL or credit score. The score can be affected due to EMI bouncing, cheque bouncing, late payment of credit card bill, or outstanding loan payments. Defaulting or late payments both can impact the credit score adversely. It is crucial to maintain a healthy score for a business loan. So, keep a payment track and ensure all payments are made on time. In addition, make sure there is always an adequate balance in the bank account for these payments.
Avoid Availing Multiple Loans
Sometimes, you apply for a loan for a business with multiple lenders in order to ensure that you get the loan approved. However, this is bad practice and can impact the CIBIL score adversely since applying for multiple loans depict credit hungry behaviour. So, what you can do here is to apply for a loan only with one lender whose eligibility and other criteria you meet completely.
Choose Lender Wisely
In order to get the best business loan rates, it is important that you choose the lender wisely. You need to opt for a lender who offers credit services at the best loan interest rates in the market. However, you need to understand if you do not meet the eligibility of the lender, the lender would perceive you are a risky borrower. And therefore, he would offer loans at a high-interest rate.
Business Age (Vintage)
The business age or vintage is another important aspect that matters a lot when availing a business loan in Pune. A longer business vintage represents that the business is earning good revenue. This also provides the documents such as ITR, bank statement, Profit and Loss Account, and other such documents that determine the business revenue. The minimum business vintage that is required by loan lenders in India is 2 years.
Apply for Loan Amount That you can Repay
Before applying for a loan for a business, determine your repayment capacity. If you apply for a loan that you cannot repay or the amount is higher than your eligibility, then this will create doubt in the mind of the lenders. This may also lead to getting your loan application rejected. Or you will get loan at high interest rates. So, make sure that you know your repayment capacity and the amount that you can comfortably repay.
Check CIBIL Score Regularly
You need to have access to your CIBIL score on a regular basis. You need to make sure that no wrong information is entered in your report. If any information is entered in your CIBIL report, you must opt for timely corrections.
Now that you know the importance of the CIBIL and eligibility to get the best business loan rates in Pune, you can work towards it. 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 products/services, find business, discover new business opportunities, and build connections.