Small Business Loan from DealsofLoan
Get finance to relish your Business Dreams with DealsofLoan. The DealsofLoan provides one of the most satisfied and safest platforms to avail various kinds of loans among which, one is the Small Business loan.
If you are thinking about how to expand your small business and push towards a greater sky of opportunities and unmatched options to soar high in the sky, the LoansofDeal offers you that needed wings. For entrepreneurs across the nation, those who have the vision and mission to expand the small businesses to large business, we are ready to help you out.
What is Small Business Loans?
Before diving into the waters, one must test the depth of it. We have the sole responsibility to guide you and provide you with the best knowledge of Small Business loans before you get one for yourself.
Small Business Loans are the financial support offered to the small business units, to offer them an efficient and needed way to run their business effectively and also to expand into the bigger units. While other loans are offered to the individuals, these small business loans are offered to the companies.
Features of Small Business Loans
There are several key features associated with the small business loans, which make it almost irresistible for several entrepreneurs. Here are those:
- These small business loans are secured loans and thus banks and other lending agencies don’t hesitate in sanctioning small business loans in India.
- These loans are backed by the cash flow and depend on the revenue streams, business model, and balance sheets and are available at comparatively higher rates of interest.
- These loans are offered by some of the big players in the market and are easily available in rural and semi-urban markets
- No personal guarantee is required
- Extended lines of credit is available with Small business loans in India
When offering a Small Business loan, all banks consider five ‘C’s, which are namely Character, Capital, Credit Score, Capacity and Credit Score. These five are the decisive factors in either the approval/disapproval of the Small Business Loans.
- Character: An important aspect, which determines how much motivated and inspired you are when it comes to the business. The overall character is being analyzed on what your future is when it concerns with your startup or business.
- Capital: The capital required is just another criterion, which the bank looks at when someone approaches any bank for small business loans. You must be realistic in your capital scenario and must analyze all aspects of it, carefully.
- Credit Score: The more is better! The credit score of yours is a determinant in the approval or rejection of any loan.
- Capacity: The capacity of the loan clearance is one factor, which the banks analyze. If you are being analyzed that the capacity to repay the amount is beyond the scope, it may result in the rejection of loan application. Even at your end, you must analyze, how much is the capacity of yours towards repayment.
- Collateral: The Collateral is one thing, which the banks need before approving the business loans. The Collateral is an important part of the loan application, which the banks carefully analyze to get themselves secured.
Types of Small Business Loans India
India is on the verge of a complete transformation of its economy and with the view to strengthening the entrepreneurship, the government has taken several added and highlighted measures to the better promotion of Business. With the view to support entrepreneurship, the government has mooted several business loans in India. Here are some noteworthy:
- MUDRA (Micro Units Development and Refinance Agency Ltd) Yojana, which offers loan amount up to 10 lacs at a lower rate of interest and is aimed to cater to the needs of around 5 crores.
- Pradhan Mantri Mudra Yojana, which is a subsidiary of SIDBI has around Rs. 20000 crores.
- Microloans, which has the maximum repayment term of six years and is only, offered to the applicants if there is a robust business plan and is a profitable venture.
- Business organizations Loans, which are a sort of help from the large businesses to the smaller business, especially in the case, the small business have that zeal and urge to develop and grow. Some examples of Business Organization’s loans are franchise loans and export financing.
- Personal loans, which several banks offer to the applicants, whose loan amount varies from Rs. 10 to 25 lacs and are unsecured with the rate of interest ranging from 18% to 24%.
- Professional loans, which also come under the Small Business loans, are unsecured loans and are provided to self-employed professionals like chartered accountants, doctors, company secretary, and other such.
- Project Finance, which is provided to the new long-term infrastructure or industrial projects having flexible repayment terms on the basis of the project assessment report.
- Equipment Finance, which is a financial support, provided to buy new/lease equipment for business units.
- Working Capital Loans is provided for daily business needs for smoother and better functioning of the units.
- Bill discounting is provided to ensure that your unit discounts bills, at least before the maturity date.
- Lease rental is provided as a term loan and is provided against lease contracts in order to facilitate business requirements.
- The financial advisory is provided for assistance by financial experts.
- Insurance is a sort of small business loans, which is provided as a finance for insurance solutions to ensure safety.
- Trade loans, which is offered to traders for starting a new business enterprise or expand the current business unit. This trade loan is repaid through Equated Monthly Installments. The rate of interest of this trade loans is based on the prime lending rate, which is either fixed or fluctuating. However, such small business loans require customers to submit collaterals such as land, which has been seen by some banks. Even, the National Savings Certificates, life insurance policies and shares and bonds are some other securities, which are also accepted against which loans could be provided to the applicants.
Eligibility Criteria for Small Business Loans in India
While, the call for availing a business loan can be troublesome in some parts of the country, where the implementation of Government rules are not done in the best way (At these places, DealsofLoan will be useful with high consideration), there are other areas, where you can get the Small Business loans with ease by completing the minimum eligibility criteria required for Small Business Loans. Here are the main requirements for availing small Business Loans in India:
For availing any small Business Loans, you must have a Business or a plan which is robust in nature. You just can’t walk in at any lending agency and ask for the loan, if you are completely empty on your plans. Also, remember that the business plan must be so good that the lending agency sees the benefit in it and can see the long-term feasibility. They must be satisfied with your proposals, which must include capital required to startups, all details regarding employee requirements and operational cost and also an assessment for the pay off debts.
The profit and loss projections for business for at least a year is a must to avail the Small Business Loans. You need to follow all standards as set by the industry and have to prepare detailed pro forma statements, which includes the projections to help the lending agencies to better judge the feasibility of the project.
The Credit history is one important factor, which an applicant must be aware of. The credit history of yours is a make or break for availing any loans in India. Having a high credit score is a must to ensure that the lending agency feels safe while lending you money. You must know that the financial institutions, always look towards your credit score before sanctioning loans of any kind, even if it Small Business Loans.
Rate of Interest for Business Loans
The rates of interest for business loans for various banks are mentioned as below:
|Banks||Rate of Interest|
|Dealsofloan InstaLoans||14% – 28%|
|HDFC Bank (3.8/5.0) 3 Users||15.50% – 18.30%|
|ICICI Bank (3.3/5.0) 2 Users||12.15% – 16.65%|
|Citibank||15.99% – 18.99%|
|RBL Bank||20.00% – 22.00%|
|Tata Capital||13.50% – 23.00%|
|Lendingkart||18.00% – 27.00%|
|Bajaj Finserv (3.5/5.0) 3 Users||14.00% – 20.00%|
|Capital First (3.5/5.0) 1 Users||16.00% – 24.00%|
|Bank of Maharashtra||14.50% – 15.50%|
|Kotak Bank||16.00% – 19.99%|
|IndusInd Bank||14.00% – 23.00%|
|Bank of Baroda (5/5.0) 1 Users||14.10% – 14.10%|
|Fullerton India (3.3/5.0) 2 Users||16.00% – 33.50%|
|IDBI Bank||13.00% – 14.00%|
|Allahabad Bank||11.10% – 15.55%|
|PNB (3.6/5.0) 2 Users||12.60% – 15.60%|
|OBC||11.95% – 11.95%|
|Indian Overseas Bank||14.90% – 15.25%|
|Tamilnad Mercantile Bank||13.40% – 14.40%|
|Dhan Laxmi Bank||13.15% – 13.40%|
|Development Credit Bank||10.70% – 18.00%|
|Andhra Bank||15.75% – 16.00%|
|United Bank of India||14.15% – 14.15%|
|Corporation Bank||13.55% – 14.55%|
|Syndicate Bank||14.45% – 14.45%|
Other Details regarding Small Business Loans
Before applying for Small Business Loans, you must follow the below-mentioned guidelines:
- You must consider all the costs associated with setting up your startups. In case, you have already existing business, you have to go through the evaluation of cost as required to set up the new units or for buying new equipment or machinery etc before you are actually going for the small business loans in India.
- You must also go through various other small costs as involved, which includes the business insurance, utilities, rent, maintenance and all other small basic needs, which is paid.
- Be ready with the documents like financial statements of last 2 or 3 years, balance sheets and income statements along with the current financial statements.
- Try to maintain the records of the payable and received accounts, which is often asked by the lending agencies.
- Go through the review of your entire business profiles and analyze the credit requirements along with the complete analysis on how to pay back the loan
- Collect the entire database of the members and owners of the company, so that it can be submitted once asked.
Perhaps, it’s the best time to take any Small Business Loans in India, as the whole country is witnessing the new stream of the business and startups. The government is eager to offer the best help to the companies to progress ahead and aspiring entrepreneurs towards entrepreneurship and getting their startups, a real establishment.
The DealsofLoan offers the best guidance and the best support to the business and other aspiring businessmen and businesswomen towards getting the small business loans at the lowest rate of interest available in the market. We ensure that you are educated on all aspects of the small business loans before you actually opt for the business loans, so that you are better aware, what you are going to face off in near future.
The DealsofLoan offers the best and most convenient platform, where you can compare various deals and rates of interest for Business Loans through several banks in India. The best services of the website offer you the full support in successfully availing the Business loans with ease and that too, at the best rate of interest. The DealsofLoan offers the multi-varied platform, where you can compare the rates, check your eligibility regarding Small Business Loans, and compare various offers available at several banks.
Throughout the loan process, the DealsofLoan help you in all available manners, so that the entire loan process is a cakewalk. With us, you can even track your loan status and can even avail several other unlimited offers and benefits. The DealsofLoan offers one of the most genuine, safest and most reliable sources of information for various loan details, which also include Small Business Loans.