Online business loans have recently gained massive popularity among business owners. Please read this article for a better understanding of online business loans, their eligibility, and their benefits in this article.
Finance acts like fuel to any new business trying to make its mark in the market. Owning a company gives you the satisfaction of being your own master and decision-making power. Although it sounds good, one side has a lot of stress and tension related to gathering funds for the business.
There is a fear of uncertainty and pressure to make the right decision as you have people dependent on you. This is why business loans are one of the convenient options for a business. It might take a lot of time, or one may not get approved for the loan for many reasons, which include missing documents or lack of a proper business plan. But leading companies have started processing and disbursing online business loans.
What Is a Online Business Loan?
A business loan is an unsecured credit you take to meet your growing business rent requirements. Business loans allow you to start your own business, expand the existing business, boost production, take care of operations online, machinery, and much more.
The quick fusion of cash through business finance enables you to make necessary purchases, make payments on time, and have smooth business functioning. Whether you plan to have the latest technology or launch a new store, you can always take an MSME Business loan. You can avail of online business loans with swift processing because you do not have to stand in queues and burden yourself with heavy paperwork.
Who Is Allowed to Take Business Loans?
-
Private Limited company
Private Companies can take loans up to 15 lacs if their net annual income is more than 1.5 lacs. For loans over 15 lacs, the net yearly income of the business is to be more than 3 lakh.
-
Self-employed professional
An individual with the required skill and qualification to avail of the loan. For instance, doctors, engineers, chartered accountants, and management consultants can help with the loan and are required to produce proof of qualification.
-
Proprietorship firm or a limited liability partnership
The company should have the profit and loss statement to meet the lender’s minimum criteria and assess the borrower’s repayment ability before sanctioning the business loan.
Other than that, the eligibility criteria for a business loan are
- The borrower should be between the age of 21 to 65
- The business should show cash profit in the past two financial year
- The registered Chartered Accountant is required to audit the balance sheet of the business
Optimize your startup journey with our business setup calculator. Calculate your business start up costs accurately today!
Requirements for Business Loan for New Business
You must submit the following documents to get approval for your business loan:
- Identity proof for the company and an individual
- Address proof
- Last six months’ bank statements
- Income documents that include the Computation of Income, the Balance sheet of profit and loss, accounts for the past two years and should be submitted after the requisite CA certification.
- ITR, trade license, establishment, or sales tax certificate for proof of continuation
- Sole proprietorship client or certified copy of partnership deed attested true copy of momentum article of association and board of resolution.
Some lenders will require additional documents, so it is best to check with the land before applying for a loan.
Procedure for an Online Business Loan
If you are an entrepreneur looking to establish, expand or improve your business, you can apply for an online business loan from a bank or a non-banking financial company. Business loans have very minimal documentation and can be applied entirely online. In most cases, the interest rate begins at 13 % and can go upward depending on one’s credit score, credit profile, loan amount, and relationship with the bank. You have to repay the loan within five years. The loan amount can go up to 50 lacs or more in some cases. You can apply online by filling out the application form and completing all the required documents to apply for an online business loan. Or you can apply in person or by visiting the landers’ branch with all the needed documents and filling out the application form.
Benefits of Online Business Loan
-
Hassle-free Application Process
No paperwork is involved. You do not have to fill out lengthy application forms and wait in the queue. The application form is available online. The soft copies, which require minimal documents, must be submitted online along with the application form. The applicant can conveniently fill out the form application from the phone or computer anywhere.
-
Flexible Tenures
Online business loans offer flexible tenures for repayment. This makes the repayment more manageable. One can choose a business loan tenure from a minimum of one year to a maximum of five years, or it can also vary from lender to lender.
-
Flexibility
Online business loans offer flexibility in terms of using borrowed amounts. You can use it for any activity related to the business; however, many business loan lenders are under fancy names such as online vendors of different business loans, capital loans, working capital loans, machinery loans, and term loans.
-
Top-up Loan Facility
If your requirement is not fulfilled with the borrowed money, you can get more money on the same loan under the same process through the top-up loan facility for existing borrowers.
For instance, you made a business plan according to which you needed ten lacs to expand your business in the nearby city. One applied for an online business loan, and it got approved, but after two years, one faced a good amount of loss, and some urgent requirements came where one needed three lacs urgently. You can avail of the top-up business loan facility, which will provide your funds in no time as you already have the existing loan the amount you are borrowing will be added to your previous account. You need to repay it along with their last borrowings.
-
Competitive Interest Rates
Online business loans are cost-effective, and they offer loans at affordable interest rates.
You can take online business loans to Start a new business, maintain or expand an existing business and fulfill any business needs. There are numerous benefits associated with online business loans, which entrepreneurs can take to help to manage their venture and prove their potential in the market. If you are an entrepreneur looking for online business loans, you can visit our website to check your documents so that your papers are valid and get the loan approved quickly.
Also Read:
