What is Business Loan – In India, the loan given by banks to the people doing business is called business loan. Business loan is given to bank and NBFC people to carry forward their business. There are mainly two types of business loan, if you are doing business . If you want to know about the loan in detail then read this article till the end.
What is Business Loan?
Giving business loan to any person or company starts from a minimum of ₹ 10000. There is no regular limit for giving business loan because business loan is given to the person as per the security .
If you have property worth Rs 10 lakh , then you can get a loan of Rs 1 lakh to Rs 3 lakh, but if you are a business owner worth thousands of crores, then you can also take a loan of crores of rupees . There are two types of business loans. are
1. Secured Loan
2. Unsecured Loan
1. Secured Loan – In this type of loan, the loan is given by banks by depositing security from you. Suppose you have a business whose valuation is Rs 100 crore.
Now if you want a loan of Rs 10 crore from any bank, then you will have to give security to the bank in exchange for this loan. Most of the people of India are given secured loans by BHIM.
2. Unsecured Loan – In this type of loan, you do not need to deposit any kind of security with the bank. Unsecured loan is given to you without any security by the bank, but you should keep one thing in mind that this type of loan Loan is given to you only when your business is very good.
Most of the banks that give loans to people in India give both secured loans and unsecured loans to companies and people. Apart from this, business loans are also given to people according to the schemes implemented by the Government of India at different times. are given
Business Loan Terms
Before giving a business loan to any particular person, the banks take various types of business satisfaction tests and only then the business loan is given. We have told you the main conditions to be implemented by the banks during the business loan.
- CIBIL score is most important for taking business loan. If your civil score is more than 750 then it is very beneficial for taking business loan.
- The business you are running must have a turnover of more than Rs 12 lakh in a year. If your turnover is less than Rs 12 lakh in a year , then in this case you will not be given a business loan.
- If you take a loan to start a business then you do not get the loan because according to the business loan given by banks , the age of your business must be more than 1 year.
- Before taking a business loan, you should not have any outstanding loan from any other bank. If you have an outstanding loan from any bank and you apply for a business loan, then in this situation you will not be given a business loan.
Documents for business loan
If you want to take a business loan from any bank, then you cannot take a business loan without the following documents. It is very important to have these documents with you.
- You must have bank statements of your business for more than 1 year
- A person applying for a business loan must have documents like Aadhar card, PAN card, driving license, passport photo and electricity bill.
- Having a photocopy of the uncollateralized overdraft
- copy of business incorporation
It is very important to have the above mentioned documents with you. Apart from this, if the bank asks for any kind of document from you while taking the loan , then it is very important to give that document to you. Apart from this, some documents keep changing according to different banks . Are
What are the types of business loans?
There are five types of loans given by banks to any person and business.
| Sr. Well | Business Lone |
| 1. | Term Loan |
| 2. | Working Capital Lone |
| 3. | Letter of Credit |
| 4. | POS Lone |
| 5. | Overdraft Lone |
business loan charges
When you go to a bank to take a business loan, the bank charges many types of fees for giving the business loan, but you should always keep one thing in mind that the fees of all the banks that provide secured and unsecured loans to the people in India. And the charges are different, so for this you will have to get information from the loan giving bank.
What is the tenure of business loan?
If you want to take a business loan from the bank for your business , then you must know about the repayment period of the business loan.
Because during this period the loan taken from your bank has to be repaid. Now if you take a loan from any bank for a short period of time or take a small loan then its time period is 1 year.
But if you take a long term or big loan then the tenure of this type of loan is more than 5 years.
What is the age requirement for business loan?
If you are above 18 years of age then you become eligible to take a loan from any bank. Any person above 18 years of age can take a business loan from any bank.
What is the required turnover to avail business loan?
It is very important for you to have the required turnover to take a business loan from any bank. Most of the loan giving banks in India require your business to have a turnover of more than Rs 10 lakh during the first year.
Loan kya hai conclusion
In today’s article, we have given you complete information related to business loan. If you still have any question or suggestion related to business loan, then you can tell us in the comment box. Apart from this, what other subjects would you like to know about? If you are interested please let us know by commenting.