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5 Factors To Consider When Applying For A Business Loan


New Delhi: The turn of the year can bring with it interesting opportunities and pave the way for growth. To ensure that your establishment can tap into this rich vein of opportunity, back your undertakings with a business loan. For the smoothest, most convenient, and cost-effective experience, consider these factors before you apply. 

  • Loan amount required and the maximum sanction offered

From launching seasonal promotions to expanding to new markets, adopting more targeted marketing strategies, or upgrading operations, whatever the goal, you need capital, and you should know the exact amount required. Based on this, you will be able to scout for loan offers that can fulfill your requirement. Be sure to pick a lender that offers ample sanction. This way, you can get the capital you need for your business without borrowing the maximum amount. For instance, the Bajaj Finserv Business Loan offers access to capital up to Rs. 45 lakh. This amount can be used to handle a wide range of business expenses with ease. 

  • Lender-specific documentation and eligibility terms

Before availing of a business loan, you must check the lender’s eligibility requirements. Some lenders will have particular terms that you need to meet to qualify for capital. This is especially important for unsecured business loans. There are strict criteria to meet, which mainly assess your: 

  • Employment type
    • Self-employed non-professional
    • Self-employed professional

  • Age
  • CIBIL score
  • Financial stability
  • Annual turnover
  • Business vintage

Based on the specifics of these requirements, you will have to submit the following paperwork:

  • Business ownership proof
  • Financial documents
  • Identity proof
  • Address proof
  • Certificate of business existence

While this list of requirements is extensive, new-age lenders may have simpler terms. Scout for these before you apply as easier criteria results in quicker processing and fewer hassles for you.

  • Availability of digital loan provisions and perks 

Digitalisation has made acquiring financing a lot quicker and more time-efficient. For a business owner, these are two benefits you can’t miss out on. Therefore, you should take the time to scout for lenders that have a host of digital provisions. One such feature that is a must-have today is perhaps access to online applications. This saves time, offers flexibility, and eliminates the need for physical visits to the branch. Other perks to look for are instant approval and digital disbursal.  

  • Business cash flow and the tenor options available

Just like any business venture, you need to plan your loan efficiently. Plan your tenor basis the maximum cash flow of your business. Know how much you can put toward monthly payments and then find loan terms that can match it. A smart way to go about it is to use an EMI calculator. 

Tweak the loan tenor until it matches the company’s repayment capabilities comfortably. At this stage, it is also important to pick lenders that allow you to opt for a longer and flexible tenor. 

You should have the freedom to not only manage payments but optimise them for additional savings too! Some lenders offer repayment plans that range up to 72 months or even higher. Consider this factor when taking a loan because it helps you put your establishment’s financial wellbeing at the top of the priority list.

  • Cost of borrowing based on the interest rate

Finding the best business loan interest rate in India is among your most important tasks. It contributes to the total cost of borrowing and simply can’t be overlooked. Fortunately, this is an ideal time to borrow since many lenders will offer promotional rates. You may be able to avail of loans at a lower rate, which ultimately adds value to the undertaking. 

Acquiring smart financing helps ensure you make the most of the borrowed sum without diluting your net profits. The best way to do this is to compare lenders and find one that offers a low-interest rate and suitable features. One such offering is the Bajaj Finserv Business Loan. Loaded with benefits, it is the ideal instrument for any short-term goals. 

With it, you get access to collateral-free capital, a flexible tenor, and a competitive business loan interest rate in India. Getting approval is simple as well. On submitting all the required documentation, you can get a loan sanction in just a few hours. You don’t have to worry about delays or setbacks. To avail of these features and get started right away, check your pre-approved offer online by filling an easy form. Accessing capital is just a few clicks away.

[Disclaimer: This article is a paid feature. ABP and/or ABP LIVE does not endorse/ subscribe to the views expressed herein. We shall not be in any manner be responsible and/or liable in any manner whatsoever to all that is stated in the said Article and/or also with regard to the views, opinions, announcements, declarations, affirmations, etc., stated/featured in the said Article. Accordingly, viewer discretion is strictly advised.] 


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