How To Get A Business Loan In Just 3 Days?
Summary: A business loan enables the business owner to have access to additional funds to keep his business running. There are many loan lenders who offer fast business loans. In this write-up, we have discussed in length how to get a business loan in just 3 days and the parameters to select the best business loan lender in India.
A business loan has turned very crucial for business owners in India owing to the fact that it helps them with additional funds. The business owner may use his savings in the initial period of the business but there would come a time where his funds would dry and he will require additional funds. In situations like this, a loan for business can be the best savior.
A business loan in India is categorized under two categories, secured loan and unsecured loan. A secured loan for a business is secured in nature, i.e. the business loan amount is secured against collateral. Collateral is an asset that has some monetary value in the market, such as a house, plot, vehicle, stocks, etc. The loan lender can sell off the asset to recover his loses in case of default by the businessman. On the other hand, the unsecured loans are unsecured in nature, i.e. no collateral is required to avail them.
A secured or collateral business loan can be availed by big players in the market since they can afford to hypothecate collateral. However, small businesses- SMEs and MSMEs cannot afford to offer collateral, so they usually avail unsecured or collateral-free business loans.
Best Unsecured Loan Lenders in India
There are many loan lenders in India that claim themselves to be the best. However, the best lenders are the ones whose services help the business owner in the best way. And when we talk about the best loan service, it is not only limited to low business loan interest rate. But there are several other factors as well, such as:
- Documents: Arranging for a pile of documents can be a tiresome act for the business owner. So, the lender who offers loans for business at minimal documentation would be the best in this scenario.
- Eligibility: Some lenders set up stringent eligibility criteria that it makes very difficult for the business to get approval for the loan. The eligibility for a loan for business without security should be easy to meet.
- APR: Annual Percentage Rate or APR is the annual cost of the loan. As against what many business owners may think, the cost of availing a loan for a business is not only limited to the interest Several other costs matters as well, such as file charges, processing cost, etc. APR includes all these costs and it is the actual cost that the business owner would incur on the loan. The APR of an SME loan must be low to make it for the best deal.
How to get a Business Loan in India?
Many people wonder how to get a loan for the business. They also presume that applying and availing business loan is a hectic task. However, with the advent of new age loan lenders in the Indian financial market, the entire loan availing process has become a very easy task. These lenders are known as NBFCs or FinTech companies or Online Lenders.
The online lenders or NBFCs has made the loan availing process hassle-free. The business owner can avail the loan for business online without even physically visiting the lender’s business. This saves a lot of time that they can invest in their business. Also, the loan disbursal is also very fast, as less as just 3 days.
The business owner can follow the below-mentioned steps to avail a business loan in India in just 3 steps:
Step 1: Search for the right lender. Surf online and shortlist a few best loans lenders in India. Then zero in on the best lender that has everything on offer that you require. Also, check the business loan eligibility online on the lender’s website to ensure that you are eligible for the loan.
Step 2: Most lenders offer loan application online. The next step is to fill the application with correct information and details. All the information regarding self and business must be correct else the application will be disregarded. Once the application is filled, it is suggested to go through it to check errors if any. It won’t take more than 10 minutes to fill the entire complete application.
Step 3: The next and last step is to upload the documents required along with the loan application. It is recommended to upload the PDFs of the documents to make it easier and faster for the lender to process the loan application.
Once the documents are uploaded, the lender’s representative will further process the application and approve/disapprove the application.
A business loan helps the business owner with additional funds at the time of need. And now that you know what factors to consider to choose the best loan lender and how to get a business loan, you can make a smart and informed choice.