Small Businesses Must Get Easy Loan AssistanceThe size of your business determines the type of loan you require. Small to medium-size enterprises (SMEs) rely on a small-scale business loan for operational expenses and business growth. The online business loan supports commercial operations, expansion plans, and recovery of losses. For initial start-ups, getting a small business loan online is a good start. Traditional financial institutions are hesitant to lend small business loans to such small organizations with no credit history, as the risk of default is high. So, funding is the major challenge faced by small businesses.
With the Indian business scenario undergoing a drastic change, there are a large number of Small and Medium Enterprises (SMEs) which are getting established and benefitted from various government schemes and policies. This has led even traditional financial institutions to realize the untapped potential of such SME loans in India. The emergence of such small businesses is vital for the development of the small industrial sectors in the urban and rural landscape across India, as it provides economic development through increased employment opportunities, development in the industrial belt, etc. Small business loans online can help them manage their business in various ways, including purchasing new equipment, managing working capital requirements, inventory management, etc.
Features and Benefits of Small Business LoanThe level of revenue generated out of a business depends upon the initial capital investment made to establish the business. Nowadays, instant business loans online have taken over the market and many small to medium-sized (SMEs) businessmen are making the most of this easy loan facility to create a foundation for their business. Like instant personal loans, small-scale business loans can be applied via instant loan apps. The features and benefits of a small business loan are definitely going to reap good profits and give a good kick-start to your start-up business.
Eligibility Criteria for a Small Business LoanThe eligibility criteria for a small business loan depend on the approval procedures implemented across various financial institutions. It also depends on the type of business for which a small-scale loan is required. For example, working capital loans are easily available due to their short-term nature of say three months -one year tenure. But other short-term loans could be for 1 – 3 years depending upon the purpose and the loan amount granted. Also, traditional financial institutions check out the credit history and income capacity of the borrower before granting any small business loans online.
Unsecured small business loans on a short-term basis are now available for SMEs from various online funding platforms. An unsecured loan implies a collateral-free loan. Such instant business loans help small-scale businesses tide over their fund deficit over the course of running their businesses. For instance, working capital loans are normally unsecured loans given on a short-term basis and which can be taken multiple times. Such SME loans help businesses tide over their day-to-day working capital requirements and manage any cash flow deficiency. Personal loans are another type of instant loans that can be availed by small proprietary businesses to fund their immediate business requirements.
Documents required for a small business loanTaking any type of loan involves document submission for basic verification of personal details and income stability. Likewise, taking a small business loan online also requires a set of mandatory documents to get an instant business loan approved. The online hassle-free documentation for small business loans reduces the stress of physical loan applications. Submission of mandatory documents for an instant short-term loan up to 1.5 lakh requires:
- You need to submit KYC documents that should include Identity and address proof (Aadhar card/Passport/Driving License)
- Financial documents may include 6months bank statements or recent bank transactions, individual profile, photocopy and other important documents requested by the lender
- Must be a citizen of India of at least 21 -58 years of age
- Should possess a good credit score
How Does One Qualify for a Small Business Loan?Small business borrowers, with low income and low credit score need not despair any more, as there are quite a few online platforms readily available to suit their immediate financial requirements.
One such unique user-friendly online platform is Simply Cash, powered by HeroFinCorp, wherein one can easily avail an unsecured short-term loan. Instant cash loan can be availed from SimplyCash within 24 hours, by downloading the instant personal loan app from Google Play Store. Anyone or any business with a monthly income/revenue of Rs. 15, 000 can avail an unsecured loan up to a maximum limit of 1,50,000 on the app.
How to Apply for a Small Business LoanYour smartphone will help you to apply for a small business loan online. Yes, it is simply downloading a suitable small cash loan app that fulfils your financial criteria for business. SimplyCash is an instant personal loan app powered by HeroFinCorp. It is specifically designed to provide instant short-term loans between Rs.50,000 to 1.5 lakh.
The amount is easily available within minutes of approval. The procedure for availing an instant short-term finance involves paperless documentation and real-time verification. Once verified and approved, disbursal is done within 24 hours.
Q.1 How do I qualify for a small business loan?A: To qualify for a small business loan online, SMEs should surpass the loan eligibility criteria that vary from lender to lender. Age, nationality, type of employment, monthly income, and mandatory documents submitted correctly can qualify a borrower for an instant business loan.
Q.2 How do I get a first-time small business loan?A: There is no difference in the procedure of acquiring a small business loan for the first time or multiple times. Borrowers can apply for a small business loan through the instant loan app. Register and follow the steps as suggested in the app to avail a speedy small business loan.
Q.3 What credit score is needed for a small business loan?A: A credit score is critical to loan approvals. It reflects the financial history of the borrower in terms of loan repayment and defaults if any. An appropriate credit score for a small business loan is the one that is closer to 900. This is a good credit score and increases the chances of getting a small cash loan.
Q.4 Do small business loans have to be paid back?A: Yes, any loan taken has to be paid back. It is a liability that a borrower incurs from the lender and has to repay it in the set loan tenure.
Q.5 What is the average interest rate for a small business loan?A: An average interest rate depends on different financial institutions. The interest rate charged on your loan amount will entirely depend upon the instant loan app you choose. The percentage of interest is evident on the credit websites for comparison.
Q.6 What is the eligibility for a small business loan?A: Whether the loan is for Rs.50,000 or 1 lakh, borrowers should check the eligibility criteria before applying for short-term business loans. It is to ensure there are no cases of fraud. For SimplyCash, the eligibility is:
- Age criteria: Borrower should be between 21 - 58 years
- Minimum monthly income: Borrower whether salaried or self-employed should at least earn a minimum amount of Rs.15,000 monthly
- Income proof: 6 months bank statement of a salaried or personal account
Q.7 What documents do you need for a small business loan?A: Submission of mandatory documents for an instant business loan up to 1.5 lakh requires:
- Aadhar card is the first document when applying for a short-term loan
- In the absence of an Aadhar card, you can provide your Pan card/ driving license
- Other important documents include your professional and financial details inclusive of salary slips and income statements
- Your account should be in any of the accepted banks as suggested by the financial institution