If you are thinking of funding your business by taking a business loan, it can be an intimidating process before the funds reach your bank account. But you have to start somewhere to financially boost your business for it to expand and evolve in a competitive market. However, you can do so by taking an unsecured business loan as now there are lenders easily offering such loans to small and medium scale business owners based on lenient eligibility criteria. While these loans are readily accessible, you need to keep certain features in mind to get a green signal as well as maintain a healthy relationship with your lender in the long run.
What is a Business Loan?
A business loan refers to the money that is borrowed by a company or an individual for a specified time and interest to fund the business expenses. It is either available for developing an existing business, investing and expanding, or adding manpower or new pieces of equipment. There are several banks and NBFCs offering business loans in India. Their rules and criteria may vary.
Applying for a business loan in India is now easier than ever. So, deciding on a lender and investing its aspects or features carefully are important for smooth approval and repayments during the loan tenure.
6 Business Loan Features to Look for
The features of any product will determine its value and worthiness whether refrigerator, car, mobile, microwave, etc. If you are aloof or unaware of the features of the business loan, it would be like jumping into a pool without knowing how to swim. Before applying for business loans in India, look for these features to make your loan application and approval easy and simple:
- Know about the collateral: Business loans can either be secured or unsecured. It is important to know the difference before applying for one. Collateral satisfies the lender in offering funds for your business. Also, it might get difficult for any business, short on collateral, to get a huge business loan. At Clix Capital, these loans are unsecured loans that are offered without any security or collateral. However, before sanctioning the loan, the banks check your credit score, business turnover, income, and other business documents. Since our business loan is unsecured, it is timely and less risky. You need not make any pledge while availing the capital during a cash crunch.
- Fixed & competitive interest rate: The business loan interest rates for such loans should not only be fixed but pocket-friendly as well. It implies that the rates remain constant. Hence, it will help you to focus on the fixed-rate, manage your budget and pay your EMIs on time. When you opt for Clix Capital Business Loan, you enjoy a competitive interest rate. Among the many business loan features, this makes our loan a cost-effective answer that you can trust.
- Option to Choose Flexible Repayment Tenure: This is the key feature of any business loan. A flexible payment procedure lessens the burden of the borrower, enabling him/her to set aside the EMI funds and maintain other financial needs. With our business loan, you do not have to worry about this as you can avail an easy tenure starting from 12 to up to 36 months. You can conveniently choose the repayment tenure that works for you and aligns with your budget.
- Check credit score and loan amount: Knowing the minimum and maximum loan amount you can avail of is a crucial part while deciding further. It gives you a clear picture of how much you need and helps you prepare each piece of paperwork needed. For example, with Clix Capital, you can avail of a maximum business loan of ₹ 50 lakhs based on excellent credit scores above 725 and stable income flow.
- Minimal paperwork & no hidden costs: Gone are those days when you have to visit the lender or a bank and stand in the queue for hours to meet an executive. Right from your couch, present your papers through your PC or mobile on the bank’s website and get verified in a few minutes. You need to have in-depth knowledge about the business loan you are applying for and find out if there is any hidden cost that might pop up suddenly, disrupting your budget. There are no hidden charges applicable on Clix Capital business loans except the business loan interest rates. We maintain transparency in our dealings and good bonding with our clients.
- Speedy approvals: Know by when your loan amount would be disbursed. Delays and lack of funding can affect a business. Once you submit the documents, the lender inspects every detail and approves the business loan which is then followed by the disbursal process. Thanks to the online loan processing option, now no need to wait for days.
Who is Eligible for a Business Loan?
Any business owner or self-employed professional who meets the following business loan requirements is eligible to apply for a business loan from Clix Capital. Before you check business loan eligibility, bear in mind a few points:
- You must be a minimum of 21 years of age at the time of loan application.
- You must be a maximum of 65 years of age at the time of loan term ends.
- Your business must have a minimum turnover of ₹ 1 crore.
- You must have a business history of a minimum of 3 years in the current work area.
So, whether you are a small business owner and looking to develop your working capital, invest in new or additional labour, or plan to purchase new machinery for your firm or plant, then check business loan eligibility with Clix Capital and meet your requirements in a snap.