Whether you are starting, expanding, or diversifying your business, securing funds at the right time is crucial. If you are looking for ways to quickly finance your business operations, we have you covered. This article will take you through four simple, easy-to-avail business loans, which allow organizations to usher in necessary funds. These loans vary on the basis of loan duration, repayment tenures, interest rates, and loan amount. Let’s have a look.
Working Capital Loan
Working capital loans are short-term loans. Businesses usually use them to meet their regular expenses such as purchasing raw materials, managing business cash flow, stocking the inventory, making payments, clearing debts, etc. They can have repayment tenures up to three years.
Besides, working capital loans are collateral-free, and the borrower does not need to submit any collateral or security to the lender. They also prove useful in paying utility bills or having ready cash at hand. These loans are best suited for seasonal businesses that sell aggressively in peak seasons for sustaining their operations in the off-season.
Term loans are perfect for making large capital investments, financing business expansion plans, or installing new infrastructure. These are divided into three categories, namely the short-term, mid-term, and long-term loans. Here, you can get loan amounts as high as Rs. 2 crores. You can compare different lenders to avail of attractive business loan interest rates.
Short-term loans with smaller tenures are perfect for immediate funding needs, and mid-term loans can easily cover your big-budget financial requirements. For long-term loans, usually secured, you can customize the tenure to repay at ease.
Additional Read: Grow your business with a Term loan in 2021
Through the overdraft facility, borrowers can withdraw money from their account despite having zero account balance. The lender charges an interest rate only on the amount utilized by the borrower on an everyday basis.
Here, the borrowed amount must be within a sanctioned limit. The sanctioned credit limit is decided based on the borrower’s credit history, relationship with the lender, and repayment history. Although there are no stringent business loan eligibility criteria, the overdraft facility is offered against security.
Machinery loans, a type of collateral-free finance, fund the purchase of new equipment. You can also use the funds to repair faulty machines or upgrade existing machinery. Besides, state-of-the-art equipment for your business can help you scale productivity and profits. Nowadays, with a business loan EMI calculator, you can calculate your repayment tenure, EMIs, and interest payable. It helps you get hold of your future business finances.
Additional Read: How to Get a Machinery Loan in India
Let Tata Capital Be Your Trusted Lending Partner!
At Tata Capital, we offer multi-purpose business loans of amounts as high as Rs. 75 lakhs. Enjoy attractive loan interest rates starting at 19%, swift disbursal, hassle-free processing, minimal documentation requirements, and flexible repayment terms. Whether it is to replenish your inventory or make necessary payments, get quick funds from Tata Capital. Moreover, you can conveniently use our business loan EMI calculator to calculate your EMIs and interest payable.
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