Features And Benefits Of A Business Loan:
Instant Disbursal
The requested sum of money gets credited to your account real quick once the application and documents are verified successfully.
If you choose us, the wait time is minimal. Moreover, you can get the amount credited the same day.
Collateral-free Advances
As unsecured loans, financial institutions do not ask for any collateral while sanctioning the loan application.
Hassle-free Documentation
Only a handful of documents are needed while sanctioning business loan applications.
Convenient Repayment Facility
Use a business loan EMI calculator to determine the EMI amount and choose the instalment that best suits your financial strength.
No End-use Restriction Attached
You can use the borrowed sum to fund any business expense without any obligation or restriction from the lender.
Eligibility Criteria:
Business owners, individuals, entrepreneurs, MSMEs, startups and self-employed professionals, such as CS, CAs, architects and doctors
Public and private limited companies, partnership firms, sole proprietorships, LLPs
Large enterprises dealing only in trading, services and manufacturing sectors
Co-operative societies, NGOs and trusts
Age: 21 to 65 years old
Employment type: Self-employed
Business tenure: At least 1 year or more
Minimum yearly turnover:Vary across lenders
Credit score: 750 or more
Note: The above-mentioned details can vary from lender to lender depending on their terms and conditions.
Factors To Consider Before Taking a Business Loan
You must take into account several essential factors while you decide on the best business loan for your firm.
Purpose of the Loan
In order to make the best use of borrowed money, you must know your financial needs before applying for credit.
For example, you must determine what equipment you need to buy if you are opting for a loan to upgrade your business. This will help you determine the exact amount you need and what type of business loan you should opt for.
Interest Rates and Other Costs
To get the best deal, you must compare the interest rates offered by different lenders. Based on the comparison, choose a lender that offers the lowest interest rate.
Further, you should keep an eye out for additional costs, such as processing charges, foreclosure fees, etc. These costs add up to the total loan amount.
Repayment Schedule
Make sure you know all the repayment terms of the credit you are applying for. Factors, such as business loan length, repayment schedule and charges associated with early and late payments should be known by every borrower.
Company Cash Flow
Assess your business's cash flow in order to determine your repayment capability. This will help you make a repayment plan and save from a financial burden.
Lender’s Reputation
Do thorough research about the financial institution or NBFC you are choosing. Learn about the lender's reputation in the market, customer service, etc. You can look for ratings and reviews from previous borrowers in order to learn more about a financial institution.
Covai Loans has partnered with some of the leading business loan providers in India. With our user-friendly interface and paperless loan application process, take a step closer to reaching your business goals. Nevertheless, if you face any issues while applying for a loan from our portal, contact our Mudra Mentors to receive comprehensive assistance.
