The Importance of Choosing the Right Business Loan
When you are considering taking a business loan, there are a lot of things that you check out, both online and offline. One might check out online EMI calculators, ask friends about online business loans, visit the websites of online loan providers and do a comparison of business loan interest rates. This due diligence is an important part of the loan application process and helps you understand the limitations and opportunities offered by different commercial loans.
At Lendingkart, we believe that choosing the right business loan is very important for MSMEs as it helps them in drawing out the full benefits of a loan. Here, we are sharing the points to look for when applying for a business loan online.
Fulfilling the Basic Criteria
It is very important to apply for business loans that your company can easily service. When you apply for a loan, a hard query is sent to the credit rating agencies. Too many hard queries can bring down your overall credit score. Therefore, applying for a business loan for which your company is completely eligible is quite important. It will not only ensure quick disbursals but will also help you build your credit rating further up.
Getting the EMI Calculations Right
Another important factor when taking a business loan is calculating the EMIs and planning your repayments accordingly. Sometimes you might end up taking a business loan which your business can easily repay and yet miss out on EMI payments. This happens when you do not calculate the EMIs correctly.
For example, you apply for a business loan of ₹10,00,000, which your business can easily repay in 12 months. However, you erroneously opt for an 8-month EMI schedule, which stretches your resources, wasting the benefits of the loan or even leading to missed EMI payments.
Selecting the Right Lending Partner
While banks are a common source of medium and small business loans for entrepreneurs in India, opting for a modern business financing institution might be a better idea for getting working capital finance. Non Banking Financial Companies offer several benefits such as low processing fees, short turnaround times, and easy business loan renewals.
At Lendingkart, we have simplified the loan application process by making it completely online. Lendingkart interest rates are customized based on business prospects of every individual applicant, thus making it easier to get a quick personalized business loan online.
Flexibility in Repayments
A business loan offered with the option of a flexible payment schedule is a boon for MSME loan applicants. A commercial loan that lets you choose from a variety of repayment schedules gives you the freedom to focus on business development rather than on payment due dates.
Lendingkart Finance lets you choose a customized repayment schedule so that you can repay your business loan comfortably. If you are doing great in your business, you can even prepay the full loan amount without any pre-closure charges.
A business takes a loan to invest in its growth, therefore selecting the right business financing product remains critical to a business’s success. Today, there are a variety of online tools which help you assess the various loan products available online and make an informed decision regarding a new business loan. Also, by selecting the right financial partner, you can grow your business exponentially.
Visit our website www.lendingkart.com for a quick unsecured working capital loan quote.