1 WHAT ARE BUSINESS LOANS
Business loans refer to unsecured income-based loans given for a short period of time for self-employed individuals or companies.
Business loans have no requirement of security or collateral and are offered purely on financial strength and credit history the borrower.
Such loans range from Rs 1 lakh to 1 crore and have a repayment period of usually 1-5 years. They are ideal for companies looking for funds of capital expenditure, infrastructure/ business development, business expansion or for that matter to fund any small to medium
They are usually not as flexible as overdrafts and other credit lines which usually support day-to-day working capital requirements but given the nature of the product, they are relatively easy to avail with simple paper work and speedy process of the loan and the borrower does not have to lock in any asset or security as collateral. However, this also means that Business loans are usually costlier than other forms of secured
2 HOW IS MY ELIGIBILITY DETERMINED FOR A BUSINESS LOAN
Your eligibility is determined after the below mentioned details are examined fully:
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Business financials of last 3 years.
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Nature of the industry the business operates in.
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The current level of obligations of the company like EMI’s etc.
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The company's past credit history.