Business loans are capital raised by entrepreneurs to meet running costs, for business expansion, or for procuring equipment. These are generally raised through a plethora of options available for the entrepreneur. Most of the times, the applicants are not aware of the best options available and tend to go for peer to peer lending models that do not offer the best business loan interest rate.
With the rise of new age financial lending institutions that rely on bleeding edge technology to offer custom solutions, the applicants are exposed to a wider variety of capital raising methods which are flexible in terms of repayment schedules, interest rates, and securities if applicable.
The business loan interest rate in India is currently among the best in the world with the involvement of government and private lending institutions. This has opened the new age entrepreneurs to a market that is competitive and beneficial. The business loans interest rates are at an all-time low, for, the competitive market has now given rise to the concept of clearer eligibility calculation, faster application processing time, and dynamic pricing.
In the world of today, the most prominent business loan interest rates are offered in capital raised from unsecured and secured business loans. To summarize, secured business loans are those loans that offer to lend by accepting a commercial or personal asset from the applicant in return for reduced interest rates, longer repayment cycles.
Unsecured business loans are those loans that are disbursed without the involvement of any collateral. The applications are scrutinized on the basis of their credit history, repayment attributes, and sometimes, the credit history of the applicant to is considered. The business loan interest rate for these forms of lending involves a higher rate of interest and a shorter repayment tenure. For, the lending institution risks losing capital upon non-payment by the applicant.
Studies have proven it is less than 2% of the total lendings that turn up in the non-payment bin and the financial lending institution is empowered to take the applicant to the court of law.
|Eligibility Criteria||Merchant Cash Advance||Line of Credit||Invoice Financing||Working Capital Loan|
|Business History duration in months||12 months at least||12 months at least||12 months at least||At least 6month History|
|Annual Business Turnover||12lakhs at least||50 lakhs at least||20 lakh at least||12lakhs at least|
|Net Profit At least||3 lakhs at least||5 lakhs & above||At least 5lakhs||3 lakhs at least|
|Have a Registered POS Device and Accept Card payments||Yes|
|using POS machine for at least 6months||Yes|
|Accept card payments of at least 50,000 INR per month||Yes|
|Supplier/Distributor of large corporate||Yes|
|Valid Invoice/Work order/Purchase Order – At least 1 Lakh||Yes|
|Documents Required||Merchant Cash Advance||Line of Credit||Invoice Financing||Working Capital Loan|
|All Bank Statements last 12months||Yes||Yes||Yes||Yes|
|KYC Documents for yourself and your organization||Yes||Yes||Yes||Yes|
|Shop Establishment Certificate||Yes||Yes||Yes|
|Invoice Against which you Need Financing||Yes|
|Nature of Charges||Description|
|Stamp Duty and other statutory charges||As per applicable State law (0.1% in Maharashtra)|
|Interest Rate Fees||Starting from 1% per month. The interest rate for every loan is determined based on evaluation of business, loan amount, financials and tenure.|
|Processing Fees||Starting from 1%|
Along with these, there are other charges like commitment charges, foreclosure charges and prepayment charges which are decided during the process of the loan and differ from loan to loan based on the criteria of the loans.
FlexiLoans is a Fintech organization that strives to offer competitive products to its large consumer base. With the infusion of bleeding edge technologies, it is now able to reach a larger user base.
FlexiLoans allows its applicants to apply for loans in a hassle-free manner. From uploading documents to a secure server to receiving guidance from its experienced team of financial consultants, they do it all.
With FlexiLoans, you are opened to a plethora of lending options to choose from which feature the best business loan interest rate in India.
If you are a business owner or a company, please click here to apply for a business loan.