Bhopal is one of the biggest cities in central India and it is only natural that there are many who would want to launch their business here. Those who already have a good business now also look forward to further expansion and take it to the next level. A small or a medium business might not have a huge cash reserve in place to always do so but the problem can be easily solved by taking a business loan in Bhopal. Here are some things that one needs to know before going ahead with the loan application process and to make the optimum use of the loan money.
- While applying for a business loan, one should take care of two major aspects- a good credit score and the availability of all the documents that would be used in the final stages of verification. A score above 700 is usually considered quite well and tells the creditor that you have a sound financial history. On the other hand, having the documents in place would mean a quick verification procedure and the documents that are mostly needed are KYC documents, Tan and address proof of business, banks details and IT returns of the last three consecutive years, along with all educational and professional certificates.
- Another thing that one must know about is the various options that one could have while applying for a loan for business. This requires a significant amount of research but based on the kind of loan one has applied for, it is possible to take care of very specific needs of one’s business, no matter what. So whether it is loan to buy new machinery or a loan to look after the cash flow, a business loan will suffice in most cases. Or one could opt for a long term business loan to gradually set up and advance the business over the course of few years. An idea about the various kinds of loans available will no doubt help you make the right choice.
- One should know that one can opt for quite high sums of money for business loans depending on one’s eligibility and NBFCs like Bajaj Finserv have loan options as high as Rs 30 lakhs. Business loan interest rates are about 18% and then there is a processing fee of 2%. One can take advantage of the flexi- loan options and per- approved offers and choose their own repayment plans. This is because most banks ad NBFCs understands that there are ups and downs in business and it might not always be possible to make a steady profit. Hence, the borrower can choose their own repayment options and there are no part- prepayment charges or foreclosure charges on flexi- loans.
- Another thing that the lender needs to know about is that most banks and NBFCs like Bajaj Finserv also offer interest only Flexi loans. This means that one can keep on paying the interests for the tenure and then pay the principal amount at the end of it. This is for those businessmen who cannot pay a very large amount at the beginning of the loan tenure. Hence, if you are one of those who were hesitant about opting for a quick business loan for apprehensions regarding not being able to pay your EMIs, your problems are solved. However, in case of regular loans, there is usually an EMI bounce charge of Rs 2500 to be incurred and a penal interest of 1% is to be paid on the outstanding balance.
Now that you have a more or less idea about the small business loan procedures in Bhopal go ahead with your application if you have a business of your own that needs financing.