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Tata Capital > Blog > Loan for Business > Common challenges you face while availing a business loan in India

Loan for Business

Common challenges you face while availing a business loan in India

Common challenges you face while availing a business loan in India

A credit infusion is often the ideal solution to the various financial problems in any business. It offers relief from operating cash shortfalls and introduces new possibilities for growth. An unsecured business loan from institutions like Tata Capital can just be what your business needs. You receive complete transparency, easy access to funds with minimal documentation and smooth application process and more importantly, unsecured business loans.

However, sometimes, to avail a business loan in India, several challenges arise. Firstly, poor access to funds, lack of transparency and more importantly, the collateral needed to secure the credit.

Let's take a detailed look at some of the challenges you can face when availing a business loan in India and ways to overcome them. An unsecured business loan can be answer to those challenges.

Collateral requirements

Although the Ministry of Small and Medium Enterprises, the RBI and SIDBI have made efforts to push enterprise financing, business owners continue to face challenges when seeking credit. Typically, financial institutions, such as banks, ask for collateral or traditional security from business loan applicants. Most entrepreneurs, given the size and their local presence, are unable to offer collateral, thus failing to secure the loan needed to expand their businesses.

In that regard, an unsecured business loan from NBFCs like Tata Capital can be used to meet the specific needs of entrepreneurs and business owners. It offers business loans online without any obligation, thus ensuring the loans are unsecured. Apply business loan by Tata Capital and customise this flexible credit offering to suit your business requirement.

Lengthy sanction period

Traditional lenders, generally, take an extended period to sanction a business loan in India. The time taken to secure credit for a business can be crucial in determining its profit or loss. Banks can even take months to approve a business loan. This can be a critical challenge for entrepreneurs and small business owners seeking instant capital to enhance their product offerings.

Moreover, a high business loan interest rate in spite of collateral can also be a deterrent for loan applicants. Keeping these factors in mind, you can avail the right business loan that addresses your needs by weighing in the many advantages that non-banking financial companies offer. For instance, you can obtain quick and hassle-free funding ranging from Rs. 5 lakhs to Rs. 50 lakhs with flexible repayment options, beginning at 19% interest rate at Tata Capital.

Added stress

Operating a business can be thrilling but brings with it, its own set of stress and challenges. The last thing an entrepreneur needs is needless anxiety when seeking credit. Perhaps, you are looking for a much-needed cash infusion to obtain the latest technology or an upgrade in order to clinch a lucrative deal. This is why it is critical to know of a simplified process from reputed lenders that offer easy and quick loan application process. To understand business loan eligibility visit our website.

Every business needs cash to buy, replace, repair or upgrade their resources in some manner or the other to keep the business running and make a profit. In some cases, an urgent need such as a critical repair or replacement can put a dent in an entrepreneur's budget. Instead of waiting for a bank to approve your loan, a loan for business from a financial institution can be the answer. And the right business loan can ensure you receive the cash in the shortest time possible to guarantee that your company runs optimally.