Starting a manufacturing business is one of the most challenging experiences of life. The business owner faces so many problems right from the start. Once he has identified the products that he wishes to offer to his clients, next comes a few most important questions. A suitable place to set up the business, taking care of fixtures and fittings, purchasing and installing machinery, arranging for labour/talent, finding target customers for the products/services, marketing the products/services, handling quality-related issues, and much more.

These are just a few of the problems that every business owner has to handle on a daily basis. As a result, they rarely get time to organize their finances properly. Thus, there comes a time when there are not enough funds in the account to meet all the business expenses.

Which Is The Option To Get A Business Loan In Delhi?

The business owner wonders where did the money go. He calculates everything correctly and feels that his markup was adequate to leave him with enough cash reserves. When he takes a closer look at his books of accounts, he realises that he indeed made profits. But the money is invested in various places, such as raw material, finished goods, work in process, outstanding payments with buyers, and purchase of daily consumables.

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So, what should he do in such a situation? Surely he should press his customers for payments, but there is no certainty regarding when your payments would be realised. In such a case, the best option is to avail an unsecured business loan for various business-related expenses.

Several financial institutions offer business loan in Delhi, Gurgaon, Bhopal, Gwalior and other major cities in India. Out of all the options available in the market, the requirements are ideally served by the NBFCs, and the business owner must seriously contemplate availing an unsecured business loan from them to supplement the finances.

More about Online Lending Companies

NBFCs are essentially online lending companies which conduct their operations through online platforms, such as their website or mobile app. The applicant can conveniently apply for a business loan online from the comfort of his home. These companies follow a paper-less procedure, wherein the applicant has to apply online for the business loan of his choice. The applicant only needs to provide a few basic details and financial information along with scanned copies of the documents to the online lenders. If the profile meets their eligibility requirements, it will only take a few working days to process your application.

Business Loan Eligibility Criteria For An NBFC Business Loan

If the business has an annual turnover in excess of Rs. 10 Lakhs, then it is eligible for a business loan of an amount ranging from Rs 1 Lakh to 7.5 Lakhs. The money availed under the unsecured loans can be used for any business-related requirement. The applicant can opt for a repayment tenor from 12 months to 36 months, depending on the EMI he can afford. As the loan is unsecured in nature, there is no need to offer any collateral to secure the loan amount.

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These online lending companies follow a holistic screening criterion, wherein they consider the financial position of the applicant through a separate credit evaluation process. In addition to CIBIL, they evaluate the creditworthiness of the borrower holistically. Thereby, it increases the chances of getting the business loan application being approved significantly.

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Online Lenders – Good or Bad?

There is an ongoing argument being made by a few detractors against the online lending companies. They give reasons that these companies are only out to make a profit and have no intention of helping small businesses owners. Some say, these companies are more inclined to help big business owners while some argue that they charge an exorbitant rate of interest. But what is the reality, is it really true that online lending companies are not helping small business owners.

Let’s assess each of the arguments given by detractors against online lenders against reality.

  1. Help only big Business Owners: This thing is far from reality. The usual ticket size for an online lending company is between Rs. 1 Lakh to 7.5 Lakhs, no big business owner requires such an amount. Instead, this amount acts as a lifeline for small business owners who are facing a temporary cash crisis.

  2. Exorbitant Rate of Interest: no, the rate of interest charged by online lenders are very competitive. And you must consider the fact that it is an unsecured loan they are offering. So, the benefits are doubled.

  3. Only making Profits: as a business owner, an individual’s main aim is to make profits Keeping the same in mind, the online lenders help the small business owners to make profits. It helps the small business owners to realise their dreams and become self-dependent.

  4. A long list of Documents: This is another concocted fact. Online lending companies require only a few essential financial documents, and that too scanned copies (PDFs) of the same. Their list of required documents is very basic and easy to compile.

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Hence, it is safe to say that online lenders have changed the landscape of Indian financial services sector for good and are indeed a boon for small business owners.

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