Generate more Revenue by investing more with a Business Loan

Business is a give and take process the more you’ll invest the better output you’ll get. And here are some business loans that can be your best choice as it offers various types of startup business loan like standup India scheme to fit into your business diverse needs. So, do have a look at the types of business loan.

Types of Startup Business Loan

MUDRA Yojana

Mudra scheme is considered one of the best business loans in India, especially among the youth. It is an abbreviation of Micro Units Development and Refinance Agency. The government initiated this scheme as a startup India loan. It is categorized under 3 loan schemes based on the loan amount like:

• Under Mudra’s Shishu an applicant can avail the loan amount up to Rs. 50,000.

• Under the Kishore scheme, the offered loan amount ranges between Rs. 5 lakhs to Rs. 10 lakhs.

• Under Mudra’s Tarun loan scheme an applicant can get an amount above Rs. 10 lakhs.

CGTMSE Scheme

CGTMSE is a short form of Credit Guarantee Funds Trust for Micro and Small Enterprises. Another initiative was taken by the Government that offers funding to the MSMEs through financial institutions like Banks and NBFCs. In this startup India loan, the first time entrepreneurs and startup enterprises are majorly benefitted. A loan amount can be availed without any security or collateral.

Stree Shakti Loan scheme

SBI business loan for women includes the Stree Shakti loan scheme. This financially empowered woman, especially in rural areas. Some of the popular small business segments where this scheme finds applications are dairy produce, manufacture of readymade clothing, marketing of farm produce like seeds, production of indigenous unbranded soaps and detergents, cottage industries like the manufacturers of spices and incense sticks.

• Equipment Financing

As the name indicates this type of funding, is bought for the equipment generally when starting the business. It is also kept as a security with the bank. This enables an applicant to get Equipment Financing at a comparatively low rate of interest. The loan amount availed from this loan scheme is expected to be used to purchase the equipment as this generates revenues from the business. The major advantage of equipment financing loans is that the equipment depreciation can be used by the customer as a tax benefit for years.

• Business Installment Loan

Many banks like Standard Chartered and ICICI Bank offer this startup loan in India. This enables the applicants to meet their immediate cash requirements. This is broadly categorized in personal loans and similarly to a personal loan, it is a collateral-free loan. However, banks may offer a low rate of interest on a loan in the secured version of this loan.

Features of SBI Business Loan

Business loans can be acquired for all sizes of organizations or businesses such as for the micro, small, and medium-scale organizations to meet all their short and long-term financial requirements. Due to various reasons, one can need a business loan. It is very beneficial to the borrowers some of them have been mentioned below:

• This business loan can be availed to meet all types of business operations. 

• It is hassle-free loan processing.

• If you meet the eligibility criteria then you can get loan approval in a short time.

• The business online loan processing can save you from making multiple bank visits.

• An attractive rate of interest is offered with the business loan.

• A high loan amount is offered based on an applicant’s profile.

• The business loan process is quick, simple, and easy to understand.

• The Bank has a team of experienced professionals and due to their efficiency; the business loan process takes less time with some basic details for the loan approval.

• Online loan processing does not require any kind of paperwork for the loan sanctioning or financial assistance.

• The business loan comes with a flexible loan repayment tenure which facilitates the borrowers to choose the best tenure as per their convenience.

Business Loan Interest

One of the most important aspects of this article, as well as the business loan interest rate. The offer interest rate on a startup business loans sometimes may differ from one applicant to another. As it is majorly influenced and determined by various factors including the applicant profile. There are various other lucrative offers and benefits of business loan from which few are given below:

• Flexible Loan Tenure: Flexible repayment tenure of 60 months with a business loan from which you choose that suits you the best.

• Periodically Discounts: Timely discount is offered on business loans especially in the festive time. 

• Zero Hidden Costs: A transparent loan processing to ensure the no hidden is charged to the borrower.

Factors affecting Business Loan Interest Rate

As mentioned above business loan interest is determined by various factors; some of them are given below: 

• Loan Repayment Tenure – Generally, longer loan tenure leads to a low interest rate. A business loan with flexible repayment tenure of up to 60 months.

• The Cash Flow– The business cash flow is considered as one of the major key characters while the loan approval process by the lender. Generally, the higher and the constant flow of cash attract a lower rate of interest.

• Loan Amount – The availed business loan amount plays an important role as it defines your business’s financial capability.

Eligibility Criteria for Business Loan

• The business should be in continuity for a minimum of 5 years in the same locality/area.

• A borrower should be the owner of the premises OR should have valid tenant agreement with the owner of the premises (In case of rented premises, a residual period of minimum 3 years).

Required Documents of Business Loan

• PAN Card – for Company/Firm/Individual.

• Identity proof (any from following):

• Aadhaar Card.

• Passport.

• Voter's ID Card.

• PAN Card.

• Driving License.

• A copy of any address proof documents:

• Aadhaar Card.

• Passport.

• Voter's ID Card.

• Driving License.

• Bank statement of the previous 6 months.

• Last 2 years ITR along.

• Audit Report.

Tips to decide the right amount of Business Loan

• Ascertain the amount you need to borrow: It is important that before approaching the SBI Bank for a business loan, you need to estimate the amount of loan you need to borrow.

• Look at your current obligations: Before taking a loan from SBI Bank, it is advisable to evaluate your current monthly expenses including any EMI obligations that you have on your current loans.