Business is like a tree the more you invest the more fruitful it will be. Nowadays there is no shortage of business regardless of the industry. So, if you are looking for some extra funds for your business but confuse about which business loan you should choose then this article is for you. As we will be talking about various schemes and types of business loan, some of the top lenders, and few tips you to choose the best-suited business loan. So, keep on reading.
Firstly, let’s have a look at some common schemes and types of business loan being offered in the market.
- MUDRA Yojana
Mudra Yojana is considered among the best types of business loan, especially among the young population. It is an abbreviation used for Micro Units Development and Refinance Agency. It is a business loan scheme initiated by the government like a startup India loan. This business loan scheme has been categorized into 3 types based on the offered loan amount:
- Under Mudra’s Shishu one can acquire the loan amount up to Rs. 50,000.
- Under the Kishore scheme, the minimum loan amount of Rs. 5 lakhs and maximum of Rs. 10 lakhs can be availed.
- Under Mudra’s Tarun loan scheme one can get a maximum amount up to Rs. 10 lakhs.
- CGTMSE Scheme
Credit Guarantee Funds Trust for Micro and Small Enterprises is the full form of CGTMSE. It is one of the initiatives taken by the Government to provide funding to the MSMEs through financial institutions like Banks and NBFCs. In this business loan scheme, first-time entrepreneurs and start-up enterprises are majorly benefitted. This business loan is an unsecured type of business loan that means a loan amount can be availed without any security or collateral.
- Stree Shakti Loan scheme
As the name suggests this business loan is offered only to women. It is a business loan offered by SBI with the aim of the financially empowered woman, especially in rural areas. Some of the popular small business segments where this scheme finds access are dairy produce, manufacture of readymade clothing, marketing of farm produce such as seeds, production of indigenous unbranded soaps and detergents, cottage industries such as the manufacturers of spices and incense sticks.
- Equipment Financing
As the name indicates this business loan, is bought for the equipment generally when starting the business. The loan amount availed from this business loan is expected to use for purchasing the equipment as this generates revenues from the business.
- Business Installment Loan
Many banks like Standard Chartered and ICICI Bank offer this business loan in India. This helps the applicants to meet their immediate cash requirements. This is broadly categorized in personal loans and similarly to a personal loan, it is a collateral-free loan.
Now let’s know about some of the popular Banks offering a business loan.
- State Bank of India
SBI Bank business loan offers loans to all such as for the micro, small, and medium-scale organizations. It has various benefits to the borrowers some of them have been mentioned below:
- It is a hassle-free loan processing.
- The SBI Bank business loan processing is quick, simple, and easy to understand.
Eligibility Criteria for SBI Business Loan
- A borrower should be the owner of the premises OR should have a valid tenant agreement with the owner of the premises (In case of rented premises, a residual period of minimum 3 years).
Required Documents of SBI Business Loan
- PAN Card – for Company/Firm/Individual.
- Identity proof (any from following):
- Aadhaar Card.
- Passport.
- Voter’s ID Card.
- PAN Card.
- Driving License.
- A copy of any address proof documents:
- Aadhaar Card.
- Passport.
- Voter’s ID Card.
- Driving License.
- Bank statement of the previous 6 months.
- Last 2 years ITR along.
- Audit Report.
- Bank of Baroda Business Loan
Following are the benefits of Bank of Baroda business loan which you can enjoy:
- Quick approval of all business loan schemes.
- The online business loan processing can be performed in a few basic simple steps.
- You are not required to do any of the paperwork for sanctioning the loans and financial assistance.
Required Documents of Bank of Baroda Business Loan
The list of required documents for Bank of Baroda business loans differs based on various factors. Here are the generic documents for the business loan.
- Duly filled the application form.
- Passport-size photograph.
- PAN Card of the primary applicant or the enterprise.
- Identity proof like Aadhaar Card, Passport, Voter ID, Driving License, etc. are accepted by the bank.
- Last 3 months bank statement.
- Ownership proof of either residence or office.
- The Profit & Loss Statement, Balance Sheet (duly audited by a registered Chartered Accountant), book-debt and creditors-statement for the latest three months, Periodic Stock, etc.
- IndusInd Bank Business Loan
IndusInd Bank offers various types of business loan to all sizes of organizations or businesses such as for the micro, small, and medium-scale organizations to meet all their short and long-term financial requirements.
Features of IndusInd Bank Business Loan
- It is a hassle-free loan processing.
- The IndusInd Bank business online loan processing can save you from making multiple bank visits.
- An attractive rate of interest is offered with IndusInd Bank business loan.
- The Bank has a team of experienced professionals and due to their efficiency, the business loan process takes less time with some basic details for the loan approval.
Eligibility Criteria for IndusInd Business Loan
Generic eligibility criteria of IndusInd business loan:
- IndusInd business loan can be availed by those having the current account in any bank for minimum 2 years.
- A borrower’s age should be ranging between of 25 years to 65 years.
Here is common list of documents for IndusInd Business Loan
- Bank statement, ITR, Certificate of Incorporation, Shops & Establishment Certificate, Partnership Deed, or Sales Tax Challans to prove the continuity of the business.
- Last 3 months bank statement.
- Address Proof.
- Ownership proof of either residence or office.
As said here are few tips to choose the best-suited business loan:
- Ascertain the amount you need to borrow: It is important that before approaching the SBI Bank for a business loan, you need to estimate the amount of loan you need to borrow.
- Look at your current obligations: Before taking a loan from SBI Bank, it is advisable to evaluate your current monthly expenses including any EMI obligations that you have on your current loans.
Conclusion:
There various other banks and loan schemes, we have provided some of the popular and preferable business loans. Regardless of which lender or loan offer you choose always plan your business loan wisely.
