Business Loan


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Overview

The foremost priority of any entrepreneur is to see his/her business grow, expand and flourish. To fulfill this desire, business owners opt for business loans and meet their financial requirements. However, getting instant funds is not always possible, as banks and Financial Services Companies take their time in deciding whether to sanction loan or not.

Business loans are majorly availed for purposes like business expansion, purchase of machinery or plant, investment in infrastructure, hiring staff, maintain inventory, etc. Further we have discussed all the relevant aspects of business loan for in-depth understanding.

A business loan is a loan specifically intended for business purposes. As with all loans, it involves the creation of a debt, which will be repaid with added interest. There are a number of different types of business loans, including bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances and cash flow loans.

Starting or expanding a business often means applying for and getting approved for a loan or a business line of credit. For years Delhi has been known for its culture of entrepreneurship and business. With the expansion of the city and the rise of new commercial hubs in the NCR region like Gurgaon and Noida, the appetite for business has expanded manifold.

Capital is a vital component for the success of commerce today. Irrespective of whether a firm is in proprietorship or big organization, finance holds the key to its development, and managing finance is certainly not a child's play. Keeping all this in mind, Finway Capital offers Business Loans to help budding and existing entrepreneurs.

Types of Business Loans?

Based on its nature, the business loans are categorised into following types:

Term loans

Finway Capital offer both secured and unsecured business loans based on state and need of the business. There are three types term loans available as follow:

  • Home Loans for purchase of a flat, row house, bungalow from private developers in approved projects.
  • a) short-term loans
  • b) long-term loans and
  • c) intermediate loans.

The repayment schedule of term loans can be monthly or quarterly. Based on the term loan secured, the type of interest can be floating or fixed.

Demand loans

A demand loan needs to be repaid based on the demand schedule. Banks and the financial institutions offer both secured and unsecured demand loans. The repayment tenure of demand loans extends up to maximum 12 months.

Loan against securities

Such loans are offered based on bank approved financial securities such as insurance policies, mutual funds, demat shares, saving bonds, fixed maturity plans etc. Such loans can be secured to mitigate an immediate financial crisis.

Features & benefits

What are the key features of Business Loans?

  • As an informed and smart borrower, you should understand all the basic and advanced features of business loans. Below is the list of key features of the business loans that are offered in India.
  • The loan amount of a business loan primarily depends on the state of business, valuation, profits, the age of the business and the industry it is operating in.
  • Documentations quick, easy and hassle free.
  • It offers flexible repayment options based on the profile of the borrower and the business.

What are the benefits of Business Loans?

  • Business loans are the most preferred options to make funds available for your business.
  • Below is a list of various outstanding benefits offers by business loans.
  • An unsecured business loans offer immediate financial assistance to a business based on their unique requirements. Such loans offer flexible repayment tenure with lower interest rates.
  • Today, most of the lenders in India does not require any security or guarantor to avail a business loan. Further, these financial institutions are offering doorstep services to the applicant today.
  • With the advent of the Internet, the evaluation of eligibility and approvals of loans are becoming lighting fast; some of the lenders offer services like business loan eligibility in one minute etc.
  • A few of the lenders offer higher business loan amounts to the self-employed individuals.

Eligibility & Documents

The eligibility for securing business varies based on the profile of the applicants. Based on the type of business the applicant engages, the applicants fall into three broad categories.

Self-Employed Professionals

The professionals such as company secretaries, architects, doctors, chartered accountants etc. come under this category.

Self Employed Non-Professionals

The applicants such as manufactures and traders fall into this category.

Entities

  • Partnership firms, LLPs, private limited companies and closely held limited companies
  • As part of the eligibility criteria, the applicant needs to fulfill the below to apply for a business loan.
    • Must have a business turnover of Rs. 40 Lakhs
    • Must run the current business for at least three years
    • Must have five years of total business experience
    • The business must be in a profitable state for the last two years
    • Must have an annual income of Rs. 1.5 Lakh per annum
    • Applicants should be in the age group of 21 to 65

Documents Required to Apply for a Business Loan

  • To apply for a business loan, you need to submit the below documents along with the duly filled application form.
    • PAN card of the individual, firm and the company
    • Proof identity
    • Proof of address
    • Last six months bank statement
    • Most recent ITR with the computation of income
    • Last two year's audited profit & loss details and balance sheet
    • Proof of business continuation
    • Partnership deed, MOA and AOA etc.

FAQs

Finway Home Loan Terms & Conditions

Security

Security of the loan would generally be security interest on the property being financed and / or any other collateral / interim security as may be required by Finway Capital.

Other Conditions

All the information contained herein above is for awareness and customer convenience and is intended to only act as an indicative guide about Finway Capital's products and services.

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