What is a Business Loan?
There comes a time in every business when there is a need for extra credit and funds for its smooth functioning. These funds help you, the business owner, to expand, invest and help in your working capital needs. At times like these, a quick business loan is the best financial aid that can help you grow.
This borrowed capital can be applied towards daily capital expenses, for specific project funding, expansion of the business including purchasing of new machinery for the business. You can also apply to take a loan for business if you need investment for starting a new business or ancillary units for your existing business.
How to apply for a Business Loan?
Any business entity or owner can apply for a business loan. Before you apply for a business loan, you need to understand the basic purpose of this loan and how you intend to utilise it. Here’s a list of the basic documentation you will need to submit:
- Application form
- Company bank statements for six months
- Income Tax Returns for 2 years
- Balance sheet and P&L accounts for 2 years
- KYC documents of the company including PAN Card, Registration of Incorporation, Partnership deed, Memorandum & Articles of Association.
- KYC documents of the owners
- A report as to how the business loan intends to be utilised
Applying for a business loan has its advantages:
- You can use the funds for any immediate requirement you may face including your daily capital needs.
- Unlike investments from private equity firms or entities, there is no need for profit sharing
- Business loans can also help in tax benefits for the company
- You also have the option of opting for Flexi EMIs, where you can control the outflow of repayment
- There is no need for any collateral or guarantee for business loans.
Are you eligible for a Business Loan?
To be eligible for a business loan, these are the points you need to keep in mind:
- You need to be minimum of 25 years of age and maximum 65 years
- Your business should have been making profit for 3 consecutive financial years
- Turnover should be on a positive trend
- Balance sheet has to be audited by a registered chartered accountant
Check your eligibility using a business loan calculator.
What are the business loan interest rates and the maximum amount of loan one can take?
Loan starting at Rs 3 Lakhs. The maximum amount you can apply for is Rs 75 Lakhs, without any collateral of guarantee.
Business loan interest rates range between 18% to 24%, depending on your requirement.
What are the documents you need?
To avail a business loan, you will need the following documents:
- Complete KYC of the company
- KYC documents of the owners, partners, shareholders,
- Audited balance sheet and profit & loss account for 2 years
- Income Tax Returns for 2 year
- Certified bank statements for six months
Why Dewan Finserv?
Running a successful business is not an easy task. There are always ups and downs that you, as a business owner face. We, at Dewan Finserv, understand that meeting every financial need is not simple and sometimes you do need a helping hand.
We take special pride in being that institution that can help you when you need help the most. We also give you the option of choosing what kind of loan you would need and which financial institution can provide you the best deal.
- Quick disbursement
- Competitive Loan Interest Rates
- No Collateral Guarantee
- Complete access
Business Loan Key Features
One of the greatest challenges for budding entrepreneurs or small business owners is getting funds to meet the working capital gap and take their business to the next level. And obtaining a business loan can exponentially boost their business prospects. But to get the maximum financial benefits, one must choose the right kind of loan for their business funding. You can avail Dewan Finserv business loans for funding requirements, business expansion, raw material purchase, etc. that come with following features.
Multiple Loan Programs
With Dewan Finserv Multiple Loan Programs for business finance, you can acquire the necessary funding to sustain in this competitive world. These loan programs are assessed by an expert team based under turnover, cash profit and banking. The loan programs are even available for qualified medical doctors.
Transparent Interest Rates
Business loan interest rates are based on diverse factors such as credentials of the borrower, cost of funds, loan tenure and market dynamics. Interest rates offered by Dewan Finserv are transparent adhering to the best market practices.
A one-of-a-kind product offer from Dewan finserv, Flexi EMI option enables you to customize your loan repayment as per your convenience. You get to choose a repayment plan that suits your cash flow. These Flexi EMI plans include:
- Step Up Flexi EMI Plan – With this plan, you can increase your fixed monthly EMIs each year to meet the profit increment.
- Step Down Flexi EMI Plan – This option allows you to lower your EMIs gradually, as your business starts making more profit, in order to repay your loan faster.
- Flexi EMIs – In this option, you can repay your loan for business periodically to significantly lower your EMI.
Hassle Free Loan Disbursement
Commercial loans offered by Dewan Finserv are usually approved within 3 business days after a duly-filled loan application and all documents are submitted.
Business Loan - Eligibility & Documents
What is Business Loan Eligibility Criteria?
Our business loan eligibility criteria are simple and aimed at small and medium sized companies. We have categorized the businesses into self employed and self employed professionals. The eligibility criteria are as follows:
What documents are needed to avail a business loan?
The documents required for availing business loan are basic and include:
What is the maximum business loan you are eligible for?
The maximum loan under business loans is Rs 50 lakhs.
If you are planning to apply, check your EMI using a business loan EMI calculator.