Those who are keen on doing their own business have a zeal of fulfilling their dreams and there are many banks and NBFCs that are lending them support in the form of Business Loans. There are many types of Business Loans to be availed though and choosing the right one can increase the prospects of the business a great deal by helping you get the most out of it. Here are 4 main types of Business Loans to know about:
- Working Capital Loans: Working capital loans are loans that can be utilized to maintain the cash flow of the business. There are some mandatory expenses to be incurred in a business, no matter if the production is high or low, or whether the business owner has received his payment on time. These expenses include rent for premises, salary of employees, electricity bill and other bill maintenance, general maintenance of machinery, transportation costs and other related expenses. Some also need money to fill their inventory so that when the peak season arrives, they are the first to deliver. A working capital loan can easily be applied for to tide over these day to day operational expenses and the loan can be repaid with the profits.
- Machinery Loans: Machinery loans or equipment financing can be opted for if one needs new machinery for the business or want to upgrade their technology for business. Working with outdated machines can not only result in substandard and flawed products, but it could also lead to workplace accidents and the owner could be sued for negligence. Opting for upgraded machines will reduce production time and costs in the long run and also result in superior quality products that will keep you ahead of competition. The loan can be easily repaid with the profits the business makes in the subsequent months.
- SME and MSME Loans: Small and Medium Enterprise Loans are ideal for new business owners who want to set up or expand their business. Many leading banks and NBFCs like Bajaj Finserv are now providing these loans at low interest rates. Loans of up to Rs 30 lakhs can be applied for and the interest rates are also around 18%. All costs of setting up a new business like renting new premises for office or warehouse, buying new machinery, hiring staff and buying raw materials can be covered with the loan money. Almost all SMEs and MSMEs can avail quick Business Loans in India from all major banks and financial institutions.
- Business Loans for Women: There are now special offers for Business Loan in India for women entrepreneurs and they are mostly characterized by lower interest rates and longer tenures of repayment. Women entrepreneurs also get a range of additional benefits like a higher Top Up Loan and the regulations from most banking institutions are formulated according to their benefit.
They can enjoy some additional benefits from Flexi loan and they also enjoy faster approval and no security against loans. To apply for a Business Loan though, women too have to meet certain eligibility criteria.
Bajaj Finserv brings you pre-approved offers for personal loans, home loan, Business Loans and a host of other financial products. Not only does this simplify the process of availing financing, but also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
If you are unsure about how to get small Business Loans in India, you can make an online application NBFC and a representative will get back to you and explain in details all about the loan procedure.