Starting Business? Personal Loan to Help!
Toying with the great business idea? Want to give it a concrete shape? All set to start the business? The nitty – gritty’s are being taken care of, the clients are set. Now you have to make the arrangement for finance which can set your business rolling…
Arranging finance is arguably the most important component of any business. It is not only essential for starting business but also to make it grow in turn capitalizing on investment opportunities. You may have an amazing plan of a business set which needs good amount of money. The challenge that an entrepreneur faces is in actually acquiring the money, and in repaying the debt which he will owe. Once again banks are at your help. Keeping entrepreneurs like you in mind, banks have come up with products like Business Loans.
These business loans are designed to make available the necessary fund that is needed to start any business. You can source the loan from any bank or financial institution. These loans can be used to buy necessary equipment, recruitment of manpower, stationeries, renting office premises, expanding, modernizing or improving business etc. In fact, business loans help you cover the cost of every aspect of your business requirements.
Business loan can also be explained from the point of view of the tenure:
Short term loans are usually for meeting short-term working capital requirement by a business which is temporarily in need of cash. These loans may be based on seasonal fluctuations, and other short-term problems that a business may encounter. Usually, these loans are payable within 1 year.
Intermediate loans are often used for start up ventures. These loans may be used to build inventory, buy equipment, or increase working capital.
Long-term loans can be availed by business owners that are well established and wish to increase their fixed assets, for related business acquisitions, and for expansion.
Long-term loans may also be given to start-up businesses, usually for purchases of land or buildings, construction activity and long-term working capital requirements these loans have terms that run for 3-5 years.
Business loan is an unsecured loan offered to self-employed individuals including proprietors, partnership, private, public limited companies on the basis of their turnover & ITR filed for last two years.
The minimum loan amount is Rs. 5,00,000 and the maximum loan amount is up to Rs. 25,00,000 based on the bank’s qualifying criteria.
So what are you thinking? Discuss in detail about your loan requirement with your bank but do not finalize before comparing rates offered by different lenders.