At present, no business can be thought of which can run without money. Behind this, there is the need to invest money at every stage in the business. If you have to buy new equipment or expand the business, then the money is required at every moment. It is also true that necessity is the mother of invention. In such a situation when there is a need for money for business, there are many ways by which money can be raised easily.
- Loan from bank
- A business loan from NBFC
- Angel investor
- Venture capitalist
- Pradhan Mantri Mudra Yojana
These are the primary ways of raising money for the business. But now the question arises that what is the way to get money through these mediums? Business loans can be applied from institutions like banks and NBFCs. However, before applying for a loan for business, there is a need to understand the eligibility of all the lending institutions. This is because all lending institutions have different lending conditions. There are certain qualifications which are demanded by almost all the institutions. Like-
- The applicant should be of Indian origin.
- The age of the person applying for a business loan should be a minimum of 21 years and a maximum of 65 years.
- Income: The person applying should have a good income in the last two years and should be in business profits.
- Turnover: The annual turnover of the business for which the loan for the business is being applied for should be a minimum of 15 lakhs per annum.
- Co-application: It is not necessary to have a co-application for a business loan.
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Business Loan Eligibility for Start-up Business
- The start-up should be an established business that has been operating for more than 6 months.
- The business should have a turnover of at least 90 thousand in the last 3 months.
- The place of business should not be in the negative list.
- The business trust applying for SME loans should not be from NGO or any religious trust.
Basic Eligibility for Getting Business Loan from NBFC Institutions
- Last year’s turnover in the business should be more than 10 lakh rupees.
- ITR filed last year should be a minimum of 1 lakh 50 thousand.
- One of the houses or places of business should be in the name of the businessman himself.
- Business must be at least 2 years old.
- Both the place of business and the place of the home should be different.
By now you have understood what the eligibility of loans for business is and which business can get a loan for business. So now let’s understand how businesses apply for loans.
There are two ways to apply for SME business loans – online and offline.
If a business wants to apply for a loan offline then they have to complete five steps for this.
First Decide Why You Need A Business Loan?
Whenever applying for a business loan, the lending institution asks you some questions. You should have the answers to these questions. If you are unable to answer the question asked by the lending institution properly, then there may be some difficulty in getting the loan. If you are asked why you need a loan for business, then your answer should be this way:
- To buy inventory / raw materials
- To buy machinery/equipment
- To increase the infrastructure of the business
- To hire the employee
- For marketing and advertising expenses
- To meet the daily needs of the business
Count The Potential Loan Requirement
If there is anything important in taking a loan for business, it is to take the loan amount according to your need. Whenever a businessman applies for a business loan, think deeply about how much money you need.
If you take the loan amount more than necessary, then there are problems in repaying it. If the loan amount is used for personal expenses then it will face difficulties in repaying it and the interest rate will keep increasing and the businessmen will get upset by it. That is why it is imperative to decide the loan amount for the business, according to the need.
Determine Which Business Loan is Right for You
About 25–30 years ago, only government banks were the only recourse for SME loans. But, today there are a lot of options. It is also important to choose the best option for yourself from the many available options. There are several types of loans available that you can choose from:
- A business loan from the bank
- Medium–term loan
- Short term loan
- Invoice finance
- Machinery loan
ZipLoan Gets Business Loans for Business in 3 Days
‘ZipLoan‘ is the leading NBFC i.e. non-banking financial company in the fintech sector. The company provides loans to micro, small scale industries. To increase business, business loans ranging from 1 to 7.5 lakh on very short terms are provided in just 3 days.
There Are Very Few Terms to Get A Business Loan from ZipLoan
- A business should be at least 2 years old.
- The annual turnover of the business should be at least more than 10 lakhs.
- ITR filled last year should be Rs 1.5 lakh or more.
- Either one of the house or place of business should be in the name of the applicant.
There Are Many Advantages to Taking A Loan from ZipLoan
- The business loan is available within 3 days of applying. (This facility is available when necessary paper documents are available)
- The loan can be applied online from home.
- The amount of business loan is prepayment free after 6 months.
- You can repay the loan amount between 12 to 36 months.