Each and every business has different financial requirements be it launching your business, expanding business operations, purchasing equipment, etc. In such situations, a small business loan comes in handy. Moreover, with an online process, you can easily get this loan within a few minutes. So read this article further as it will help you understand what a business loan is and guide you on how to get an instant business loan online.
What is a Business Loan?
Banks and lending institutions offer personal loans for business needs such as expanding your business, launching your own business, managing inventory, purchasing equipment, etc. This loan is offered based on how your business is performing for the past years. Since it is an unsecured loan, you need not submit any collateral while getting this loan. Moreover, you can apply for an instant business loan online using Buddy Loan. It is one of the biggest loan aggregators that helps you get personal loans at affordable rates from top lenders.
- Age: 24 to 70 years.
- Business Tenure: Your business must be registered and show good profits and ROI for at least three years.
- Individual entrepreneurs, SMEs, MSMEs, Manufacturers, etc., can apply for this loan.
- Your business should have a turnover of INR 12 lakhs and more annually.
- Your business must not have any outstanding debts in previous years.
- The applicant must have a credit score above 750.
- Proof of Identity: Aadhar card, Driving license, PAN card and passport
- Proof of Address: Aadhar card, passport, electricity bill or water bill
- Proof of Income: Bank statements for the past three months, Salary slips for the last three months, ITR (Income Tax Returns) for the last three years, and balance sheet with P & L statements for the past three years audited by a chartered accountant.
Benefits of Taking A Business Loan
- Collateral Free: You don’t have to submit any collateral as it is an unsecured loan.
- No Hidden Charges: There are no hidden charges included for a business loan. However, you will have to pay GST of 18% and processing fees of 0.5% which will be deducted from your total loan amount.
- Minimum Documentation: You have to submit just minimum documents for your KYC verification.
- Flexible Tenure: The loan repayment tenure starts from 12 months to 60 months. So you can select your loan tenure according to your requirement.
- Quick Loan approval: You can get this loan approved instantly if you have submitted all the required documents.
- Paperless Process: You can apply for a business loan online and at the comfort of your home.
Sustaining your business in a competitive environment can be quite challenging, especially when you are short of funds. In such situations, you can take a business loan using Buddy Loan to save your business from entering into loss.