About Business loan  

Any the individual that wishes to start a business or wishes to expand their business further needs funds to do so. This is where individuals and entrepreneurs take a business loan at an agreed rate of interest and time. Without these loans, capital businesses can’t run smoothly. There are 2 types of business loans:  

• Secured loans

In secured loans, the entrepreneurs offer collateral like inventory, land, machinery, home, etc. for which the rate of interest will be less.   

• Unsecured loans

In unsecured loans, the businesses take a loan without any collateral. The interest rates are high as the risk for the banks is also high.    If you are looking for a business loan provider in Gurgaon, connect with Real Finserv. We are a leading financial institution that can help in securing the best business loans. We don’t offer loans but guide and assist businesses at every step to find a loan at the best deals. We serve as a link between financial institutions and loan seekers. You can explore every aspect of various types of loan right from eligibility, interest rate, terms and conditions, and much more before making the decision. You can make a comparison between different banks and NBFCs so that you get the best loan for your business.    Let’s have a look at other detailed information about a business loan:   Purpose of Business loan   Common reasons to seek a business loan are as follows:  

• Expanding operations

  Many businesses want small business loans in Gurgaon when the business starts growing. In this situation, they may need to purchase or lease land for expansion of office or operations. A bigger space can enable them to scale up production or services. A business with growth projection can opt for expanding operations more than once.   

• Working capital

At times, small businesses lack funds for running their day-to-day activities. They may take short term loans until their own assets earn enough revenue for meeting the operational needs.   

• Buying equipment

Technology has become a key element in the business, and companies need to keep updated with the changing trends. There is always a demand for purchasing or upgrading present technology. Business loans can help companies in buying/ leasing or replacing the equipment and machinery with newer technology for improving the production and operations of the organization.   

• Credit history

It is important for a business to have a good credit history if they are looking for larger loans in the future. To ensure this, entrepreneurs get short term loans and repay them on time for improving credit history. If the loans are repaid consistently, it will lead to positive credit history.   

• Purchasing inventory

Small businesses often need immediate capital for buying inventory stock or raw material. The demand for your product may be high in the market, and you may need to scale up the production. The business may not have the required funds to buy raw material to meet the increased demand. The issues can be solved when entrepreneurs take loans for buying inventory needed for the production.   Eligibility for a business loan  

• Type of business- proprietorship/partnership/private limited/public limited
• Track record of the business
• Profit made by the business
• Turnover of the business
• Cash the flow of the business

  Documents required for a business loan  

• Identity proof
• Address proof
• Board resolution
• ITR and statement of computation of income for the last 2 years
• Proof of continuity of business
• Bank statements of the last six months
• CA certified/ audited profit and loss account statement. For more than 40 lac cases, audit report along with schedules of profit and loss sheet and balance sheet for 2 years.
• Latest ITR of co-applicants for the last 2 years
• Ownership proof of residence or office

Schemes for women entrepreneurs  

For encouraging more and more women to pursue their dreams and become self-reliant, there are some special schemes for women entrepreneurs. These schemes help to bring the best from self-help groups. These schemes have helped in increasing the number of women entrepreneurs in the last decade. Some of these schemes are:  

• Mahila Udyam Nidhi Scheme- Punjab National Bank- loans for women to set up small scale industries
• Annapurna Scheme
• Stree Shakti Package
• Cent Kalyani scheme- Central Bank of India
• Dena Shakti scheme- Dena Bank- for financing women entrepreneurs in Agriculture, small enterprises, micro, and small enterprises
• Bhartiya Mahila Bank has been absorbed by the State Bank of India.
• Udyogini Scheme- Punjab and Sind Bank

Applying for a business loan  

First of all, you need to check the eligibility for applying for a loan. You can check the credit score with us free of cost. Once you have checked the credit score and got the credit report, it will be the base for getting a business loan. The credit report will give a glimpse of credit history which includes previous and current credit audits. This will include the loan and credit card accounts. If there are negative accounts because of incorrect information or pending dues, you need to rectify them. This can be done with credit improvement services. For start-ups and first-time loan seekers, it is all the more important to build a good credit score with score building products created for people without a credit history.    When you decide to take a loan, you must first consider the requirement of the business. You also need to consider the strategic business needs and decisions. Then you must consider the loan amount and interest rates along with processing fees and pre-payment charges. Choose a loan with the lowest processing fee and interest.    It is also important to get information about loan defaulting as well. Banks have their own criteria for loan defaulting. Good credit history and able co-borrower are important.    If you are seeking a business loan in Gurgaon for expanding your business or growing the scale of production, explore Real Finserv. We can make you a self-reliant entrepreneur with the right loan. 

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