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Published on Jan 12, 2021Updated on Oct 27, 2022
Business loans are primarily an unsecured loan type that helps business owners and entrepreneurs to meet business goals and run their operations smoothly. A business loan can be taken for working capital needs, buying new machinery, capital expenditure, marketing expenses and much more. With easy eligibility criteria and flexible repayment terms- you can ensure growth of your business while managing cash flow in a better way.
Business loans can be secured or unsecured. Secured business loans are those which are secured against assets pledged by the borrower as collateral. These loans typically involve large amounts (more than INR 50 lakhs) with tenures upto 15 years or so (depending on the nature of the asset pledged) which are required by business owners for long term investments. On the other hand, unsecured business loans are for smaller amounts, and have shorter tenures. These are typically meant to help business owners meet short term goals such as purchase or upgradation of machinery / inventory, working capital, etc.
There are two ways through which you can avail a business loan, either through an online process or by visiting the nearest branch office of the lender.
However, before applying for a business loan, use the online free business loan eligibility calculator and business loan EMI calculator to know the maximum loan amount you may be eligible for, and the best tenure you can select so that you can easily manage your monthly EMIs within your budget. It is also advisable to go through the basic business loan eligibility criteria of the lender as well as the documentation requirements before applying to reduce the chances of rejection.
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While signing the loan documents, carefully read through the terms and conditions including the proceeding fees, repayment tenure, foreclosure charges and other charges to eliminate the chances of any future discrepancies.
Must Read: 10 Types of Business Loans in India
A Business loan is only considered for the following customer profiles by any lender:
For small businesses and entrepreneurs, a business loan provides quick and hassle-free funding that lets you continue with your business plans and goals. Due to its unsecured nature, business owners don’t have to worry about arranging collateral and can focus on the growth of the business more effectively. And, always ensure, you have a good credit score before applying for a business loan.
*T&C Apply
*Terms and Conditions apply. Loans are disbursed at the discretion of Fullerton India.