What is a Business Loan?
Every business be it small scale or large scale requires investment. The investment in new business depends upon the kind of operations. To start a new business, one has to arrange adequate funds to bring the business into existence. People generally prefer taking a business loan to start their business. A business loan can be taken for several purposes like to start a new business, to expand the existing business, to buy machines for the business, etc.
Business loans are financial assistance provided by banks and NBFC’s for starting a new business or expanding the current business. The loan is being provided to support the growing needs of the businesses. These loans are provided on a certain rate of interest and these business loans can be availed by any form of a business entity be it a sole proprietorship, partnership, Limited liability partnership, etc.
Features of Business Loan
Business loans are catering to the needs of the people very efficiently. Business loans are serving as the best source for the growth of the businesses. Some of the prominent and common features of these business loans are as follows:
- Fixed-rate of interest: The rate of interest for the business loan remains fixed in the entire tenure of business loans. The rate may be fluctuating in the case of some special customers. Generally, the rate of interest remains constant. The rate of interest of any business loan generally lies between 11%-19%.
- Less Paperwork: The feature which makes these business loans worth opting for is less paperwork involved for the same. Gone are the days when many formalities and paperwork were required to be done to avail the business loan. Nowadays, business loans can be taken by visiting the website of the loan provider and uploading the documents for verification and getting the loan.
- Loan amount: Business loans are effective because they can give loans up to Rs.50Lakh. However, the amount of loan extended depends upon the credibility of the person. Before sanctioning the business loan, the bank checks the credibility score of the individual.
- Collateral free Loans: The biggest advantage of these business loans is that they are unsecured i.e. no collateral security is to be placed at stake to avail them. The loan provider only checks the credibility score of the person and extends the loans.
Documents required to get Business Loan
Getting a business loan in today’s time is very easy. One needs to just submit certain documents to avail the business loan. The documents that are required to get a business loan are as follows:
- Proof of business
- The Income statement of the last 6 months
- Aadhar card, PAN Card
- Residence proof
- Income tax return of the last 3 years
- KYC Document
- Ownership of business proof
How do we at Vakilgiri assist you in getting a Business Loan?
Applying for a business loan requires careful study of the amount of loan required, the bank from which loan is to be taken, the tenure of business loan for which it is to be taken, etc. Vakilgiri helps you getting a business loan by just completing a few steps. Vakilgiri assists in getting every type of business loan keeping in mind the needs of the customers. So, here are some reasons why you should get your business loan done from Vakilgiri:
- Vakilgiri provides Pre-approved offers on business loans i.e. if you want an instant loan, then you can apply online and can get some discounts or pre-approved offers on your business loan.
- Vakilgiri provides loans according to the special needs of the customer i.e. working loans, loans for women, loans for MSMEs, etc.
- Apart from giving loans, Vakilgiri also provides other services like tax filing and return as additional service at lesser rates.
- Less paperwork and formalities are to be done while taking a business loan from Vakilgiri.
There are numerous other benefits that an individual can avail by taking a loan from Vakilgiri. Vakilgiri has a deep concern for its customers therefore it provides many services under one name. An individual starting a new business can take a business loan from Vakilgiri as well as can get their business registered by Vakilgiri, also they can file their tax or make changes in the business as and when required. The other services which one can get from Vakilgiri are getting GST Registration, MSME Registration, Getting a business plan, making necessary changes in the business like changing the objectives of the business, changing the name of the company, change in the partners of the business, etc.