Get Instant Business Loan Online in Just 5 Minutes

ByNafas

Every business may have different financial needs be it launching your business, expanding business operations, purchasing equipment, etc. in such scenarios, getting a small business loan will be the best option. With a fast and digital process, you can quickly get this loan within a few minutes.

This article will help you understand what a business loan is and guide you on how to get one without hassle.

What is a Business Loan?

A business loan online is a personal loan offered to fulfill business needs for small and medium scale enterprises. This loan is provided based on how well your business has been doing for the past years. You can use a business loan for various business requirements such as starting your own business, expanding your business operations, managing inventory, purchasing equipment, etc. You do not have to submit any collateral while availing of this loan. However, you must have a high credit score to get maximum benefits. You can easily check your score using Buddy Score and get an instant credit report.

Eligibility Criteria

You can apply for a business loan easily if you meet the following eligibility criteria:

  • Nationality: Indian.
  • Age: 24 to 70 years.
  • Business Tenure: Your business must be established and registered. It must run successfully with good profits and ROI for at least three years.
  • Individual entrepreneurs, SMEs, MSMEs, Manufacturers, etc., are eligible for this loan.
  • Your business must have an annual turnover of INR 12 lakhs and more.
  • It would be best not to have any pending debts in previous years.
  • Must have a credit score above 750.

Documents required

  • Proof of Identity: Aadhar card, Driving license, PAN card and passport
  • Proof of Address: Aadhar card, passport. electricity bill or water bill
  • Proof of Income: Bank statements for the last three months, Salary slips for the previous three months, ITR (Income Tax Returns) for the previous three years, and balance sheet with P & L statements for the last three years audited by a chartered accountant.

Benefits of taking a business loan

  1. Collateral Free: You can get a business loan without submitting any collateral as security.
  2. No Hidden Charges: There are no hidden charges for a business loan. However, the banks may charge GST of 18% and processing fees of 0.5% deducted from your total loan amount.
  3. Minimum Documentation: You have to submit only minimum documents for KYC verification.
  4. Flexible Tenure: The repayment tenure starts from 6 months to 60 months. You can choose your loan tenure according to your convenience.
  5. Quick Loan approval: Since the whole process is online, the loan amount will be disbursed to your bank account within 24 to 48 hours after completion of verification.
  6. Paperless Process: You need not physically go and visit your bank to apply for this loan. You can apply using their official website or mobile application.

EndNote

Sustaining your business in this competitive environment can be challenging, especially when you urgently need funds. Thus, you can also take a business loan using Buddy Loan to save your business from entering into liquidation and loss.