Online lenders have lately become the most preferred and best option for availing business loans in India. More and more small businesses are moving towards online lenders for loans for business to expand their operations. And why not, online lenders have several advantages over banks, such as flexible repayment tenure and short-ticket loans. These factors have made online lending institutes such as NBFCs the best choice for MSME loans.
Let us take a look at the reasons why the business owners should apply for NBFS business loans:
Turnaround Time
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The first advantage of availing loan online is its timely availability. If a business owner fails to get funds within the required time frame, he will either lose the expansion opportunity or the same opportunity will cost him more. Since many small business owners apply for bank loans, banks take their own sweet time to process the loan application. Thus, their process is very slow.
On the other hand, NBFCs especially cater to MSMEs and their financial needs. Therefore, they immediately process the loan application and verify documents. In most cases, NBFCs process the loan application on the day it was filled and approve the application within a couple of days. In addition, the loan amount is also disbursed within the next 3 days.
Online Process
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The main reason online lenders have gain prominence is their online process. They offer an online loan application and the business owner can apply for a loan easily from his office or home. Additionally, he can also upload the soft copies of the required documents on the website of the online lender.
NBFCs usually require fewer document limiting to just PAN card, bank statement, ITR, and identity and address proof. Thus, an online lender conveniently and quickly verifies the documents and disburse the loan amount without must struggle. This also makes the entire loan availing process a pleasant experience for the businessman.
Documentation
also read: the a-z guide for business loan documents
As conveyed earlier, there is not a lot of paperwork involved while availing loans online. The online lenders verify the documents through various governmental portals. They usually require ITR of previous 12 months, bank statement, address and identity proof, and PAN card.
Flexible Repayment Tenure
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The various online lending institutions allow the borrowers to choose the lending tenure that perfectly suits their pocket. In addition to offering lower interest rates and processing fees, they also offer flexible EMI repayment options. This helps the business owner to repay the loan for business with much ease.
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