Things to Know Before Applying for Business Loan

In order to setup a business and run it smoothly, finance is required. This financial requirement can be met either through owner’s own savings or by borrowing from others ( banks, NBFCs and other lenders). Business loan offered by banks and NBFCs is usually approved without many hassles, but still one should know everything before applying for Business Loan. You can get different types of business loans such as working capital loan, machinery loan, loan against property, invoice discounting and venture capital finance. After deciding the type of loan as per business requirement, you have to provide crucial information to banks regarding the business like the time for which the business has been running, the annual turnover, growth rate and profit earned during the last few years.

    Business loans are granted to self-employed professionals  as well as non-professionals. The age of the borrower should be between 21 to 65 years. To get a business loan, borrower must have a business stability of 3 to 5 years. Business loans can be both secured and unsecured. Interest rate of the loan usually ranges from 13.50 % to 28 % respectively. Having a good credit score is also very important for seeking business loan. After knowing all the essential information relating to business loan, you can use online loan aggregator websites for applying and comparing different business loans to match your affordability.