Our Business Loan Services

Business Loans

A loan specifically intended for business. As with all loans, business loan involves creation of debt that has to be repaid with interest. Business loan is an unsecured loan offered to self-employed individuals including proprietors, partnership, private and public limited companies on the basis of turnover and ITR filed for last three years. Business loan is fund provided to business by a bank, individual(s), or an organization usually to be repaid by a certain date with certain amount of interest. The amount of a loan, interest rate, repayment date, qualification of the loan recipient to merit the loan, credit analysis and the number of lenders used to achieve the desired loan amount are all variable.
The growth and sustainability of a business depends on the continuous inflow of funds. The funds might be required to expand the business or purchasing equipment. Businessman need the funds to buy some equipment, working capital gap, payment to creditors, pay off business dues, pay employee’s salary etc. Businessmen can’t put the funds in line from their personal savings. Thus, they opt for business loans. The business loan works as the perfect financial aid for such situations. Taking a business loan is always a safe and easy way to tackle your business-related financial needs. You can also apply for a business loan if you want to start a second line of new business. The terms and conditions to avail such a loan are different than the loan taken for already running business. Also, each business is different in various aspects thus it requires different documents and is applied to different criteria. That’s why banks and NBFCs offer customized business loan plans as per the requirement of applicant/s. These plans are applicant/s centric and made with keeping financial alternatives in lure. The funds can be borrowed in the form of a loan from banks and other financial institutions. Business Loans are typically unsecured in nature which means no collateral or security is required to borrow a loan. Business Loan is a debt provided to the company or theself-employed professionals or business owners that are to be repaid along with the principal amount. The rate of interest is usually pre-determined by the lending institutions. A Business Loan in India is offered at competitive interest rates, with a low processing fee, and without any security or collateral. Several leading banks and NBFCs including HDFC Bank, ICICI Bank, Capital First, Citibank, Fullerton India, Tata Capital, and so forth are offering business loans.

Term Loans:
Term Loans could be used for business expansion or capital infusion requirement of an organization. Generally, a term loan is the loan offered for the acquisition of long-term fixed assets including land or building, machinery, and other business needs.  The interest rate can be either fixed or floating and are usually have a fixed repayment schedule.
Over Draft Limit:
It is the maximum amount that your bank is prepared for you to borrow from your current account. The overdraft utilized will determine the interest that will be payable by the customer. Overdraft against property is a flexible product offering that allows a person / firm a combination of term loan and overdraft facility against residential or commercial property. This product is useful for professionals, Sole proprietors, proprietorship firms, partnership firms or a private limited company. In simple terms, overdraft can also be understood as an instance when money is withdrawn from bank account and the available balance goes below zero and in this situation, the account is said to be overdrawn. So when a person / firm goes in to an overdraft, it is getting in to debt.
Cash Credit Limit:
It is a short term loan provided to companies to fulfil their working capital needs. Cash credit account is the primary method in which banks lend money against the security of commodities and debt. This account runs like a current account accept the fact that money withdrawn from it is not restricted to the amount deposited in the account. It is an arrangement under which a customer of a bank or financial institution is allowed an advance up to certain limit against credit granted by the bank.This means a loan may be granted say for Rs. 1 Lac, however the customer / borrower of the loan may take the amount of loan to the extent required by him but not exceeding the limit of Rs. 1 Lac. The loan is suitable for meeting working capital needs.
Bank Guarantee:
A bank guarantee (BG) is a promise from a bank or any other lending institution that if the borrower does not or is not able to repay the loan, the bank will cover that loss. The bank guarantee enables a company to make a purchase that otherwise it could not have made. Bank guarantee is thus an instrument that directly or indirectly leads to an increase in business and thus entrepreneurial activity. It is often confused with letter of credit but the two are different. In a BG, the lender (Bank) becomes a co-signer on the purchase contract with a vendor as it is vetting for the applicant. The lender or the bank is also referred to as the ‘Guarantor’ in such cases. Bank Guarantee is usually sought by the vendor when there is little or no time to assess the financial stability and credit worthiness of the applicant. Usually, the BG is for a specific amount which is a certain percentage of the total money required by the applicant.
Letter of Credit:
Letter of Credit (LOC) is a document from the lender (issuing bank) guaranteeing that the buyer will make the payment to the seller on time and of the exact amount failing which the bank will bank will be required to compensate the partial or full amount that is due to the seller. The bank also acts on behalf of buyer (holding the letter of credit) by ensuring that supplier will only be paid once the bank receives adequate proof that goods have been shipped.
Education Loans:
Education industry is undergoing fast transformation. The ace institutes of the country like IIMs and IITs have increased in number off late and have also increased the number of seats per course. Apart from these, there are many other governments approved / recognized institutes ad universities. Education loan is provided to pursue all types of academic courses, in India or abroad. The courses include graduation, post- graduation, professional, vocational and other certificate courses. The students at times face the hurdle of not being able to pay the fee even after securing part-scholarship. For the students who come from a poor financial background or for those who do not want their parents to feel the burden, the option of education loan is a fairly good bet. Almost all the banks offer an educational loan as it has been a product in demand over past many years consistently.