Small businesses in India are considered as the lifeline of the business industry of the nation. There are many micro, small and medium level businesses working towards making profit in India. As more and more people getting involved in small business, the increase for funding needs is seen all over the nation. Small businesses require various amounts of funds for their various business related needs. For that, they usually opt for a business loan. There are various types of business loans offered by banks and NBFCs for small businesses.
Whether it’s a service provider, manufacturer, trader or distributors, everyone needs specific amount of credit at some point in their businesses. Many banks and NBFCs are used to give bigger amount for longer tenures for businesses which are earning profits in huge amount and have been there for a long period of time. Thus many believe that small businesses do not get loan easily. But now-a-days banks and NBFCs are giving away small amount loans with shorter tenure specifically to small businesses. These loans are specially designed as per the needs of small businesses. They get quick disbursements and require minimum documents.
Features and benefits of Short term finances for small businesses:
- Loan Amount:
Banks and NBFCs offer a minimum of Rs. 5,00,000 to maximum of Rs. 50,00,000 for small businesses. This amount is very low in terms of business loans; but perfect for the requirements of a small business. The amount is given as per the needs of the borrower/s.
- Customized Loan Plans:
Every business and its requirements are different from each other. Banks and NBFCs understand this and thus they have come up with customized loan plans. They offer the loan plans as per the business’s requirements, credit history, resources, objective and the overall nature of the business.
- Extra Charges And Fees:
Banks and NBFCs understand the financial crunch the borrower/s must be having. Thus they charge very minimum processing fee which ranges from 0.50% to 2% + tax*. Also many banks and NBFCs do not charges prepayment charges allowing the borrower/s to pay off the loan whenever he/she/they can.
- Short Tenures:
As the loan amount approved here is small, the tenure also falls shorter. Banks and NBFCs usually offer 1 to 3 years of tenure for short term business loan for smaller enterprises. This tenure is very flexible thus helping borrower/s to pay off the loan easily.
- Quick Approval And Disbursement:
Many times small businesses require the funds sooner than later. Banks and NBFCs, keeping this thing in mind, approve the loan as quick as within 72 hours. The money disburses in the borrower/s’ account immediately. The borrower/s just has to present the correct documents at once.
- No Mortgage:
This is an unsecured type of loan. Thus it does not require any mortgage or collateral to be kept with the bank or NBFC. As this is a mortgage free loan, it approves quickly and the borrower/s live under less stress.
- Uncomplicated Eligibility Criteria:
Each bank and NBFC has different criteria to approve a short term business loan for smaller enterprises. They change as per their policies. They require s strong CIBIL score along with a strong and sustainable business proof. Also all the business related documents should be audited with ITR paid on time.
- Minimum Documentation:
To get a short term business loan for smaller enterprises, the borrower/s has to submit minimum documents. These include ITR details; VAT returns; KYC details of applicant/s and organization; banks statements and details of current loan obligations.
Isn’t it exciting knowing that you can get a short term business loan for smaller enterprises so easily! So click here now to apply for one!