A large number of Banks and Financial Institutions offer small business finance in India at a low interest rate and flexible repayment tenure. The loan can be customized based on the requirement of the applicant and carries a prepayment option. The prepayment option allows individuals to prepay the loan before due time and save up on the amount of interest that will be payable in the future.
The finance can be availed for any purpose and has a simple and hassle free procedure. Small business loans can be applied for by individuals, public company, private company or sole proprietorship. The applicant should have completed at least three years in the business and the business should be profitable as per industry norms. If the business is profitable and has the ability to generate profits in the future, the loan will be approved within no time. Additionally, holding a positive credit score also goes a long way. If the previous loans have been paid in due time, the applicant will have a positive credit score which will help in the quick approval. Documentation for the application includes identity proof, address proof, signature verification, photographs, audited financial statements and pro forma income statement and balance sheet of the business. The loan amount will be based on the ability of the applicant to repay the loan. Applying for small business finance in India has become a simple procedure and is no longer the tedious and time consuming procedure that existed in the past. Individuals who seek finance need to determine the purpose of the loan and the amount they wish to obtain. Based on the same, they can scout the market for alternative financiers and choose a reliable and trustworthy financier who will guide them through the entire procedure. The interest rate varies from financier to financier and will also depend on the loan amount and the tenure. It is ideal to choose a financier that offers the lowest interest rate on the loan. Due to the flexibility of repayment, the tenure can be scheduled as per the income generating capacity of the business. Applicants can determine the monthly repayment amount using the EMI calculator available online. The calculator will provide an approximate amount once information about the tenure and loan amount is provided. The finance can be used to make the most of the business opportunities available in the industry or for various purposes like expansion of the business, purchase of new machinery, introduction of a new product mix or any other business purpose. With a hassle free application procedure and a quick approval, the funds will be made available within a short period of 10 to 15 days.