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Questions (FAQs) on
What is Business Loan ?
Operating a business requires capital and depending on the size of the business, the requirement of capital varies largely. For smaller & short term borrowings, businesses often use overdraft facility from their banks but when the time horizon of the loan is big and the amount is also relatively higher, then banks take the route or Business Loan. It is a kind of loan or borrowing taken from a bank or financing institution for the purpose of business operations.
What are the key features of Business Loan ?
A business loan is a kind of mostly an unsecured loan given to a business not an individual. Starting from amounts as low as 50K, business loan can be taken to any amount depending on the scale of business & requirement. The interest rates of business loans generally keep varying from time to time and bank to bank but it generally falls in the range of 15 to 25%. The tenure of business loans also varies generally from 1 to 5 years.
The most critical aspect of a business loan is getting the lowest possible interest rate. Since the base rates itself are high and the business loan amount is also large, so even .25% to 1% of difference in the loan may cost you lacs & crores.
What are the various types of business loans available ?
A business has the option of many types of business loans today. Each type of loan may have a different structure, benefits, features & conditions. You need to evaluate as what kind of business loan suits to your need in particular. Overdraft, LC(Letter of Credit), BG (Bank Guarantee), Term Loans, Bill Discounting etc are the most prevalent business loan types available in market today. Besides this, there are some special business loan schemes run by the government of India, State Govts and their agencies. These schemes tend to provide business loan to start ups, business loan to SMEs and business loan to woman entrepreneurs in particular.
Which banks offer best business loans in India ?
There are many banks & RBI licensed NBFCs who offer business loans. But most of the business loans are given to the companies with a healthy business record of over 3 years and a fairly decent size of business. The startups or new companies struggle to get startup business loans and even if they manage to get , they are mostly asked to provide collaterals or security for start up business loan. Some of the most popular banks and NBFCs offering business loans are :
SBI Business Loan | PNB Business Loan | Bank of Baroda Business Loan | Allahabad Bank Business Loan | Canara Bank Business Loan | IDBI Business Loan
ICICI Bank Business Loan | HDFC Bank Business Loan | Axis Bank Business Loan | Yes Bank Business Loan | Kotak Mahindra Business Loan | IndusInd Bank Business Loan
Bajaj Finance Business Loan | Indiabulls Business Loan | Religare Business Loan | Aditya Birla Finance Business Loan | Mahindra Finance Business Loan | India Infoline (IIFL) Business Loans | TATA Capital Business Loans | Fullerton Business Loans | Capital First Business Loans
Since there are so many players in the business loan segment and each of them having different terms, rates & process, it is always advisable to consult a Business Loan Advisor first. A Business Loan consultant brings you a detailed comparison of all the banks & financing institutions and makes it easier for you to decide. A Business Loan Financial Advisor also helps you in the documentation & paperwork for your Business Loans and helps you expedite the processing of Business Loan.