Be it expanding your operations, investing in equipment, need for working capital or even hiring staff, every stage of the business needs access to funds.
A business loan is one of the most popular financing options that are available to business owners in India. It is an accessible avenue for instant funds that can be used to meet a variety of business needs. Even though there is an interest component attached to the business loan, the benefits far outweigh the cons.
Before you take out a business loan, you must invest some time in planning to avoid any future financial mismanagement.
Common types of business loans include:
Business owners can avail tax benefits on a business loan, depending on the type of loan they take. This helps to lower their overall tax liability that mitigates a part of your fund outflow that is paid as the interest rate on business loan. However, you must be aware that most unsecured business loans do not have any tax benefits at all.
There are several myths regarding benefits to business owners on business loans. These are:
There are various expenses incurred by the business owner in order to operate and maintain the enterprise on a daily basis. These expenditures can be classified as business expenses. Any expenditures that are used by the business owner to generate income for the business also fall under the purview of business expenses.
However, not all expenditures on the business are classified as revenue-generating activities. This list includes the following:
Any business owner can apply for a business loan at Fullerton India as long as they fulfil the minimum eligibility criteria. This includes:
You can use the Business Loan EMI Calculator to determine the monthly installment amount applicable to your desired loan amount. This tool is available on the Fullerton India website.
You have the option to upload soft copies of the business loan documents. Generally, you will need to share the following:
Just click on the “Apply now” button on this page and select “Business loans”. You will find a loan application form that needs to be filled up along with OTP verification of mobile number. Fill up the same and submit. You will receive a call from our representative to take your application further. If you wish to know more about business loan interest rates, please click here.
On submission of the application form, a reference number will be automatically generated. Use this in your future communications with Fullerton India. Generally, it takes about 24 to 72 hours for the loan to be verified, sanctioned, and disbursed to the applicant’s registered bank account, as long as the applicant matches all the business loan eligibility criteria, and has the requisite documents in order.