India is a strong and a diversified country which is expanding its financial sector rapidly. The already existing financial organizations are trying to strengthen their base and services and new Banks/ NBFC’s are entering the banking sector to provide new financial products.
Fund is the lifeline of any business. It can be for establishing a new one or expansion of an existing, securing finance is a critical task.
Business owners find it difficult or even don’t know from where to start? Jhankar started a business with a small investment where she offer a wide range of personalized gift items for birthdays, anniversaries, wedding and even cute return gifts for kids. You just have to describe what you want and with her creative ideas she will assemble it for you. Her continuous efforts gave her good returns and she gained a good popularity within a short span of 1-2 years because of her personalized gifting ideas. She started receiving orders from different cities and she was ready for expansion. She prepared a business plan where she described how she will expand her business. These days ecommerce and social networking is important to connect with more people so she decided to choose an online platform and social media for promoting her business. For an effective marketing she has to hire a web developer, a content writer, photographer, workers, material and also a social media marketing company.
This entire plan needs funds to put this into action but she has no clue on how to expand and arrange for the funds. A friend suggested about Business loan and she was happy to know that all major Banks/ NBFC’s are happy to lend for the expansion. She shared some tips through her research and experience while shopping for loan. She came across www.mudrahome.com and collected all important information related to this financial service. She used the eligibility and EMI calculator to find the feasible amount that she can pay. She calculated her credit score by providing few details about herself and the business. She also researched on the different standards followed by the financial service providers and important factors to be kept in mind to make the process easier.
Business Loans, as the name suggest, is a financial service specially designed for business expansion purpose or for day to day operational expenses of the business. Business loan is given to self employed professionals and the loan amount is utilized for various business purposes. ITR’s and the business turnover is base for lending funds. One of the benefits of Business loan is that it is unsecured and does not involve any collateral or security or guarantors. The prepayment facility is also given with minimal charges. In case if the business is a corporate entity and any default happens then the burden is not only on the individual or the owner but on the company as a whole. The company is liquidated to recover the loan amount. This financial service can be secured or unsecured depending on the credit worthiness of the individual. (Check Your Credit Score Absolutely Free)
Banks/ NBFC’s offer Business loan on different rate of interest and other charges. These rates depend on the turnover of business, years of existence of the business, loan amount you applied and your repayment capacity. There are many financial service providers that offer Business loan to the eligible business owners. The following table shows the comparison between these lenders on different parameters.
Getting a business loan has become quite easier than before. The financial service providers are eager to fund the businesses with strong plans.