All business owners aspire to take the business to new heights. But to turn the dream into a reality, you need to have access to funds. No matter what you want to do in your business, you will require funds. The Government has taken special measures to improve the state of SMEs in the country and offers several funding options. Financial institutions in the country are inclined towards SMEs and offer low SME loan interest rate. If you are considering applying for a loan, there is no better time than now.
Whether you are self-employed, proprietor, partnership or a private company, you can apply for a loan. The biggest advantage of the loan is that you do not need to provide a collateral. The lender will offer funds without asking for the hypothecation of the asset. You can apply for a loan even if you do not own any asset at all. In order to apply for the loan, you will have to check the eligibility criteria. Different lenders have varying criteria you need to be aware of and you can compare the same online. Most lenders have a minimum turnover requirement and the applicant should be in the same industry for at least three years prior to the loan application.
If you fit the eligibility criteria, you can make an online loan application. All you need to do is submit the application form and upload the documents. You will have to provide KYC of the partners, Memorandum of Association, Articles of Association, address proof, bank statement of the last six months, ITR and business continuation certificate. Some lenders also require you to provide an audited income statement and balance sheet and a pro forma income statement and balance sheet. Once you submit the documents, they will be verified by the lender and your loan will be processed in no time.
Always choose a lender that offers low SME loan interest rate. It will make the EMI payment easier and will reduce the burden on you. With low interest rate, the EMI amount is low and your monthly outflows can be manageable. You need to be very practical when agreeing on an EMI amount. Consider the monthly inflow and if you think that the EMI is too high, you can ask for a longer tenure. Use the EMI calculator to get a quick estimate. The calculator is available online for free. You only need to provide the loan amount and tenure.
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