Having access to capital is like having a secret weapon in the entrepreneurial domain. Whether one is an aspiring entrepreneur or a seasoned business proprietor, capital serves as the driving force behind growth and sustainability. For those aiming to establish their dream venture or expand existing operations, business loans hold transformative potential.
In this article, we will obtain a better understanding of business loans and their profound impact on entrepreneurial endeavours. Additionally, we will guide you through the simple steps so you can easily apply for business loans online. So, let’s get started!
What is a Business Loan?
A business loan, in simple terms, provides financial assistance to business owners who need external funding for their operations. It covers various expenses like employee salaries, rent, equipment purchases, or expansion across new cities. Lenders assess the creditworthiness of business owners by considering factors like credit score and business turnover.
Entrepreneurs and business owners must prioritise their legal obligations. These responsibilities require them to use the loan amount wisely for business expenses rather than personal expenses. When you apply for business loans, it is crucial to prioritise timely repayments.
Lenders charge interest on the principal amount, and borrowers have a responsibility to fully repay it within the designated loan tenure.
Types of Business Loans
Every business has unique capital requirements as they operate in diverse industries and sectors. Lenders ensure they address each business’s specific capital requirements by offering specialised business loans. So, before you apply for business loans through an online platform, it is crucial to have a thorough understanding of the common types of business loans.
- Term Business Loans
These are simple and short-term loans that do not come with any extra perks or benefits. These loans typically have a duration of 1 to 5 years. In order to obtain term business loans, borrowers must specify the purpose for which the funds will be used. Then, as per the specified purpose and business credit history, the amount is determined and granted.
- Working Capital Loans
Working capital business loans are identical to term business loans as they are also short-term, typically lasting 1-5 years. Individuals who desire to apply for business loans can choose this one to address immediate financial obligations like rent and employee salaries.
- Business Loan for Women
Certain reputable lenders also offer loans specifically tailored for independent businesswomen. These business loans give borrowers the chance to augment their working capital and broaden their operations.
- Machinery Loan
Businesses involved in the manufacturing industry may find it necessary to acquire the latest machinery for their factory. To finance such business-related tools or equipment, the borrower can apply for business loans on an online platform.
Eligibility Criteria to Apply for Business Loans
To apply for business loans, one needs to fulfil the following eligibility criteria:
- Established enterprises that have been operational for over two years at the time of application should demonstrate profitability.
- Make sure that the business does not fall under any category or list of excluded businesses.
- The applicant business owner must have a bank balance of at least Rs. 5000.
- The applicant’s age should be at least 21 years at the time of applying for the business loan and at most 65 years at the time of the last EMI.
- Lastly, it is important to note that Charitable organisations, NGOs, and trusts are not eligible for a business loan.
How To Apply For Business Loans
Here are a few steps one needs to follow to apply for business loans on a lender’s website.
- To apply for business loans, start by visiting the lender’s website and navigating to the business loan section.
- The next step involves clicking on “Apply Now” and filling out the application form.
- Submit all the documents required for completing KYC.
- The last step involved in the process that needs to be followed to apply for business loans involves clicking on the “Submit” button to finish the loan application process.
- After careful review, the lender will either accept or reject the loan application. This process usually takes less than 30 minutes and disburses the amount within 48 hours into the borrower’s bank account.
Obtain Business Loans From a Dependable Lender!
Access to capital is essential for entreprÂneurs, and without any doubt, business loans are crucial resources in this regard. Here, we explored business loans’ significance and provided a step-by-step guide to apply for business loans easily. If you are seeking practical financial solutions and a variety of tailored business loan options, then visit Tata Capital’s website.
Their expertise and user-friendly online application process empower individuals to efficiently access the capital necessary for your entrepreneurial journey. Take action and apply for business loans on Tata Capital’s website today!