How to Get Business Loans in India

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How to Get Business Loans in India
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Business Loans in India

• Business loans are more pronounced than personal
  loans in terms of the magnitude of finance.
• The credit requirement in business loans is
  higher, hence, the approval procedures are
  cumbersome as well as time-taking.
• Though the accessibility to a business loan has
  become easier in India, getting approval still
  remains a tough task.

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Challenges with traditional business loans

• Several challenges arise while availing business
  loans in India.
• Heres a detailed look at the various challenges
  encountered.
• Lack of Uniform Eligibility Criteria
• In India, business loan eligibility criteria vary
  with respect to various factors such as the
  business type, working capital, and annual
  turnover.
• The business loan eligibility criteria also
  differ from bank to bank.
• This possesses difficulties as business owners
  waste a lot of time trying to meet the
  eligibility criteria.

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Collateral Requirements

• Though unsecured business loans are offered by
  lenders, a business loan of the higher amount
  still demands collateral or security deposit.
• In case you fail to repay the loan in the
  stipulated time period, the lender has the right
  to sell the mortgaged property.
• If you are able to prove your loan repayment
  capability and credit eligibility, you can escape
  the requirement of collateral.

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Eligibility Criteria for Business Loans
To avail business loans in Delhi and other parts
of India, a business owner is required to meet
the business loan eligibility criteria as
mentioned below.

1. The applicant must be a citizen of India.
2. The applicant must be above the age of 21 years
   and below the age of 65 years
3. The applicant should be engaged in a stable job.
   In the case of business persons, the business
   must be operational for at least 3 years.
4. In addition to this, the business should be
   making a profit in the last two consecutive
   years.
5. The CIBIL score of the applicant must be high.
   

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Easy And Fast Accessibility

• Traditional business loans require a detailed
  business proposal.
• This drawback is encountered with the flexibility
  provided in case of unsecured loans.
• Moreover, the borrower is not required to produce
  any list of assets to procure the loan.
• Hence, the processing and disbursement of
  unsecured loans take place in a comparatively
  short period of time.

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