Do you have an idea for a startup that you really believe is promising? Do you think you have the potential to build the next big thing? Is lack of funding the only worry on your mind? The answer to this conundrum is a business loan.
Money is critical to kick off a business idea and turn it into a successful venture. However, finding investors is one of the biggest hurdles enterprising entrepreneurs face. To ease their ingress into the business world and turn their ideas into reality, banks and NBFCs help aspiring entrepreneurs get a business loan in India.
Who can get ?
An individual or a group of individuals who have come together to start a business can avail a business loan for startup. An existing business can also get this loan for expanding operations or service offerings, buying equipment, stocking inventory, investing in research and development, and meeting several other expenses.
There are a few business loan eligibility and documents requirements for business loan seekers, though:
- Minimum age of 21 and a maximum of 65
- Indian citizenship
- Valid PAN and Aadhaar cards
- Bank statement of the past six months
- Signature proof
- Proof of ownership of the business or a robust business plan
Additional Read – Check Out All the Necessary Business Loan Agreements Required
How can startups avail a business loan in India?
The two most important aspects that a lender will take into consideration to disburse a loan are CIBIL score and the business plan.
Like any other loan, a good credit score is paramount to getting a business loan application approved. An entrepreneur’s credit standing is linked to the startup, and having a strong score can prove to be very beneficial.
The second thing to keep in mind is a sound business plan. This must detail the business idea, the need-gap it will fulfill, objective and goal of the initiative, how and where the loan amount will be used, potential returns and expected growth of the enterprise.
Here’s how you can avail the loan for business:
Applying for such a loan is quick and hassle-free. You can apply for an online business loan in a matter of minutes. All you have to do is visit the lender’s website, fill up a form, upload the required documents and submit the business loan application.
You can also visit the bank branch and physically submit the application; but it is more convenient, and in the current times, responsible to do it online keeping social distancing norms in mind due to COVID-19.
Additional Reads – How to Smartly Use Business Loan after Lockdown ends
Laying a strong groundwork for your business loan can help fast-track the process. It is equally important to choose the right financing partner. Someone who understands the dynamic needs of a startup and offers the much-needed flexibility the new set-up needs will always be the right choice.
As a part of the Tata Group – one of the original home-grown startups in India, Tata Capital is always eager to partner with ambitious, young entrepreneurs who define the new enterprising India.