Get Instant Business Loan online at Low-Interest Rates

Whether small or large, every business goes through a difficult phase where it requires financial aid to sustain itself in a competitive market. In such a situation, taking a business loan becomes a boon to handle expenses smoothly without letting the business go into liquidation.

In this article, let’s learn what a business loan is and how you can get one quickly at a lower-interest rate.

What is a Business Loan?

Business loans are a type of personal loan offered to meet your business requirements, such as starting a business, expanding business operations, purchasing new machinery, etc. This type of loan is unsecured, meaning that you do not have to pledge any assets as security to avail of one. You can easily apply for a business loan, where your loan amount will get disbursed instantly within a few hours. Hence, it is a convenient source of finance.

What is the right time to apply for a Business Loan?

● Starting your new venture

You can apply for this loan to meet the overhead costs when you start your new venture.

● Expansion of your business

Expanding your business is a considerable capital investment that may include new product launches, expansion of business operations, etc. Therefore, it is best to secure a loan to curb these costs smoothly.

● Purchase of new machinery

To sustain your business in the market, you must keep it technologically updated according to the current trends in the market. As a result, you must purchase new machinery and equipment, which costs a lot. Hence, you can get this loan to meet the costs of equipment.

● Marketing Strategy

A good marketing strategy helps build a strong for your business which attracts more customers. It ultimately plays a vital role in bringing profits to the organisation and comes with a cost. Hence, availing a business loan will help you curb your financial requirements.

Features of a Business Loan

Zero Collateral: You need not pledge any assets to avail of this loan.
No hidden charges: There are no hidden charges included except GST of 18% and processing fees of 0.5% deducted from your loan amount.
Minimum Documents: You have to submit the documents required for KYC verification.
Flexible Tenure: You can choose to repay your loan amount starting from 6 months to 60 months through EMIs.
Quick Sanction: As the process is digital, the verification process is fast, and the loan amount gets disbursed to your account within 24 to 48 hours.

Eligibility Criteria

Must be an Indian citizen with ages ranging from 24 to 70 years.
Business must be registered and have significant ROI for at least three years.
SMEs, MSMEs, public and private companies, etc., are eligible.
The yearly turnover of the business should be more than INR 12 lakhs.
The business should not have any pending debts.

Important points to note before applying for a Business Loan

Maintain a credit score of above 750, indicating a good credit history. It will ultimately help you get a loan at lower interest rates. You can also check your credit score using Buddy Score to get an instant credit history report.

Take the loan amount for only what you require so that you can quickly repay your dues on time. As a result, it will increase your creditworthiness.

Before applying for a loan, plan and calculate your EMI from various sources to picture your expenses.

Compare the interest rates from various lenders and choose which offers lower interest rates.

Look for additional charges such as GST, processing fees, prepayment penalties, etc.

EndNote

The success of a business depends on how it can sustain itself in a competitive market. With the constant technological change, you must keep up with the current trends and demands of the market to meet your customers’ needs. The lack of financial resources can become a threat to your business. Therefore, to handle this situation smoothly, you can avail of a business loan using Buddy loan with interest rates starting from 11% per annum.