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How to Apply for Business Loans Online in India
Are you a business owner looking to expand your operations or purchase new equipment? Obtaining a secured or unsecured business loan could be the solution to fuel your company's growth. In this article, we'll guide you through the process of how to apply online for a business loan.
Apply for Business Loans Easily
1. Determine Your Requirements:
Determine the loan amount you require and the purpose. Accordingly, you can apply for the right type of business loan. For example, if you need to obtain a loan to manage working capital, you can opt for a working capital loan.
2. Research Lenders:
Visit multiple lenders' websites and learn about their eligibility criteria, online application process, required documents, disbursal time, etc. Shortlist 2-3 lenders based on the comparison and apply online. You can also use a business loan EMI calculator to analyze the impact of varying interest rates on the EMI.
3. Fill Out Online Application Forms
Fill out the online application forms on the respective websites of the shortlisted lenders. While filling out the forms, ensure that you meet the eligibility criteria to increase your chances of loan approval.
4. Upload the Documents Required
Once you fill out the forms, you need to upload the required documents. The list of documents may vary from lender to lender and the type of business loan. For instance, unsecured business loans may require documents like KYC documents, proof of business, business vintage, bank statements, etc., while secured loans will need collateral-related papers, along with other necessary documentation.
5. Loan Approval and Agreement
Before signing the agreement, ensure that you read through all the clauses. Understand the EMI that you need to pay, as well as other terms, including charges and fees. Once you sign the agreement, you will receive funds in your account.
The online application process can be completed within a few days, making it a convenient option.
Understanding Business Loan Eligibility Criteria
Business should be operational for at least 1-3 years
Minimum annual turnover of ₹10 lakh to ₹50 lakh, depending on the lender
Credit score of 700 or above
Some lenders offer specialized loans like business loans for women entrepreneurs with relaxed eligibility norms.
Business Loan Interest Rates, Fees and Charges
Thoroughly research the interest rate and the various fees that the lender may impose, like processing fees, legal fees, repayment charges, foreclosure charges, etc.
Business Loan EMI Calculation
Before applying for a loan, it's crucial to understand your repayment obligations. You can use a business loan EMI calculator or a business loan interest calculator to estimate your monthly instalments based on the loan amount, interest rate and tenure.
Conclusion
Applying for a business loan online has become a streamlined process, thanks to the rise of digital lending platforms. By understanding the eligibility criteria and gathering the required documents, you can make an informed decision.
If you're looking for a reliable lending partner, consider FlexiLoans is an online platform that offers business loans, machinery loans, term loans and small business loans with competitive interest rates. With FlexiLoans, you can apply online in minutes and receive funds in your account within 48 hours!