Know about business loan and procedure to get it

Business loan is the type of loan which is only given or granted for business purposes. It is offered to the owners of a particular business who are running a company and are in need of funds from external sources. The loan is granted for giving salaries to workers, if some new equipment is to be bought, and if the business is to be spread over any other location. This loan is given for business purposes only and not for personal use. The lenders will first see the worthiness of the business owner like their turnover, credit score, etc. Based on these factors the loan will be given. 

Like every other loan, this loan also needs to be repaid with interest on the principal amount. 

Criteria needed to be fulfilled for the loan:- 

  • The enterprise should be a well-established business and it should be doing business for at least six months.
  • The minimum required turnover for the business should be a minimum of 90000 to be eligible to apply for the loan.
  • The location of the business should be in a nice environment with no negative things.
  • NGOs, Charitable organizations, etc are not eligible for the loan. They won’t be given this loan.
  • The business seeking loan shouldn’t be a blacklisted business or any excluded business. 

Procedure for applying:-

  • The business owner should visit the website of the lender and select the business loan option from the menu available.
  • Then after reading about all the required documents and eligibility criteria they have to click on the ‘apply now’ option. Thereafter just fill the form given on the website.
  • Third step is the submission of documents required for the KYC process to be completed.
  • Now after filling out the form and uploading the required documents one has to click on the submit button to finish the procedure.
  • After this part is over the application will be sent to the lender and after everything is verified successfully the loan amount will be disbursed and come into the applicant’s account within the time the lender mentions. 

There are various kinds of business loans as the loan amount asked will be different for different businesses. Some of the types of business loans are term business loan, working capital business loan, startup loan, commercial business loan, etc. Lenders will look into the capital needs of the business and then disburse the required amount of money. 

On the part of documents, for a business loan one has to submit the KYC documents, GST registration number, pan card, previous 12 months bank statement, and so on. Business loans are available for every state in India. One of them is Rajasthan which has flourished a lot in some years and has become a business hub. Business loan in Rajasthan is very easy to get as it has become an investment hub. Term loan, cash flow loan, start up loan,etc are some common loans in Rajasthan. Also, Jaipur as its capital has also grown. Like getting loans in Rajasthan has become easier likewise Business loan in Jaipur has also become popular and easy nowadays.