Finding the Best Option for Refinancing Your Business Loan

Business loans allow a small or medium enterprise to expand its operations, streamline working capital, and boost manufacturing. In India, both banks and non-banking financial companies offer business loans and loan refinancing for SMEs. Loan refinancing can help a business save more money in repayments of an existing loan. However, selecting the right lending partner is crucial for a loan refinancing to be of benefit for your enterprise.

Deciding if loan refinancing is right for your business or not

Most businesses apply for business loan refinancing because they wish to save money by getting better interest rates for the remaining principal amount of an existing business loan. Obtaining a loan refinancing deal at lower interest rates is possible in two scenarios. Number one, the market interest rates for business loans have dropped due to government and RBI policies. Number two, your business situation has improved, meaning your income / sales are higher and your company’s credit rating has improved, since taking the business loan.

Other reasons why businesses apply for loan refinancing are, moving from a variable rate loan to a fixed rate loan or accessing equity in a commercial property with a cash-out refinance.

Loan refinancing also allows businesses to move from one financing class to another. For example, recovering a collateralized asset through an unsecured business loan, paying off construction debt with permanent financing, or replacing a long-term loan with more flexible, renewable working capital loan.

The thing to know about loan financing is that there are as many options as there are debts. Ultimately, determining whether you need business loan financing depends on your business goals.

Basic requirements for refinancing a business loan

Different lenders will have different turnover, documentation and verification requirements for refinancing business loans. Where traditional lenders like banks tend to have an extensive documentation policy, instant business loan providers like Lendingkart only ask for the bare-essentials for approving loans and loan refinancing. In general, lenders require profit and loss statements, balance sheets, and tax returns for multiple periods to assess the financing risk and approve refinancing terms accordingly.

Eligibility requirements for a loan refinancing can depend on the type of your existing financing vehicle. For example, if you are looking for invoice factoring, the lender may not ask for your credit score at all because you are simply collateralising the accounts receivables. In this case, a lender maybe more interested in the credit worthiness of your commercial clients.

Helpful tips for refinancing your business loan

There are some things which should be kept in mind before applying for a business loan refinancing. These prudent measures can help you in assessing the true value and benefits of refinancing your business debt.

  • Start with a clear goal that you wish to achieve by refinancing the debt. Sometimes, the right financial product for your need may be different from the one you select for recovering an asset or lowering your interest rates. This means, by selecting the wrong financial product, you may end up losing more money.
  • Evaluate your existing loan, the amount and tenure left, and the interest you will be paying. Compare these things with the principal amount of your new loan, the tenor and interest payments for the refinanced loan, adding prepayment penalties and new loan processing charges to the total cost. This will give you a definitive picture of the financial vehicle’s viability.
  • If you are servicing parallel business loans and are considering business loan consolidation, then do the above mentioned calculations for all loans before making a decision. The advantage of consolidating business loans is that you need to pay a single EMI instead of several fractured transactions every month. However, missing critical financial details such as tenor and interest rates alignment can lead to a significant increase in the monthly EMI amount. Read more about EMIs on EMI Calculators and Business Loans – Facts and Myths.
  • Look for loan refinancing deals online. Have a closer look at the payment terms, minimum interest rates, collateral requirements, processing charges and prepayment process of the lender before applying for loan refinancing.

At the end of the day, loan refinancing is just like all other financial products and services which promise to unburden your financials. When done right, refinancing can bring huge benefits for your business. But if done wrong, it can also alter your financial wherewithal and disrupt operational readiness.

Get in touch with Lendingkart

Lendingkart is a leading NBFC in India, offering small-ticket finance of up to ₹ 2 crore for SME owners and startups. We have expert advisors in our employ who can assist you in selecting the right loan refinancing vehicle for your commercial debt. Moreover, you can also avail renewable business loans at competitive interest rates for a period of up to 2 years from Lendingkart. We disburse funds within 3 days of approval and verification of your business and personal information.

To apply for a small business loan, you can either visit our website at www.lendingkart.com or download the Lendingkart mobile app for your Android. To know more about business loans and related topics, follow our blog.

Top Factors that have an Effect on Your Business Loan Interest Rates

If you are a small and medium business owner, you would know what a chore it can be to secure a business loan. Apart from the general problem of securing business finance, SME owners also face exploitative interest rates, unfeasible loan repayment schedules, and high prepayment penalties. This in turn reduces their trust in institutional finance. However, in recent times, the business lending scene has seen a transformation owing to FinTech. It is a relatively new form of business finance which focuses on speed, efficiency, and ease of getting business loans. FinTech finance is offered by non-banking financial companies like Lendingkart and remains one of the fastest ways to get a business loan today.

But as things stand, most borrowers are still worried more by the interest rates on business loans rather than the associated problems in securing them from a traditional lender. While NBFCs like Lendingkart do offer lower interest rates on business loans, there is an internal and external component to determining interest rates which cannot be overlooked by any marketplace lender. In this post, we will have a look at the top factors that have an effect on your business loans interest rate and how you can tweak some them to lower the amount of interest you pay.

Internal factors that increase or decrease your business loan interest rates:

  1. Credit Score: The credit rating of your business is of utmost importance when it comes to determining business loan interest rates. If your credit rating is below the 700 mark, there is a high chance that your loan application will get rejected or you will be charged an exorbitant amount of interest. Improving your credit score by repaying existing debts and streamlining your cash flow will help you lower the interest rates on future loans in this case.
  2. Time in Business: The age of your business also matters when it comes to determining your loan interest rates. If you have a long-running enterprise, the lenders trust you in terms of stability and performance and are willing to take the risk of lending money on lower interest rates. That is one of the reasons why startups and new businesses without a minimum experience struggle to get institutional finance in India. However, NBFCs like Lendingkart have a very liberal ‘getting on your feet’ requirement and are willing to lend to stable business ventures as young as 6 months.
  3. Type of Business: Several industries and businesses are considered untouchable by financial lenders. These businesses are usually classified by government and financial policies as highly volatile and risky. Getting a business loan for such a venture often includes special permissions, higher interest rates and fulfilling specific conditions.
  4. Business Plan: A lender will often ask you to disclose your plan for growth before providing finance. So, in case you have a ‘make it as you go’ policy or the lender is not overly confident in your ability to execute a plan, you may still secure financing albeit at a higher rate of interest. On the other hand, preparing a healthy and feasible business plan before applying for a business loan can actually lower your interest rates.
  5. Revenue / Sales: Another major point on the checklist for getting a business loan with lower interest rate is having a healthy revenue stream, which in turn means having a good sales network. In case, your business is not earning in proportion to the amount of loan you are seeking, the application may get rejected or you are offered a modified loan amount or the interest rates are raised according to the risk of default. Again, this is an internal factor and you can take steps to get lower interest rate on a loan by optimizing your operations and income.

External factors that increase or decrease your business loan interest rates:

  1. Rate of Inflation: It is the rate at which the value of a currency reduces, which in turn has an effect of the general prices of goods and services. If the inflation rate is high, then things become costlier and the purchasing power of a consumer decreases. It has a domino effect on the rate of interest on business loans. A decrease in purchasing power means the interest rates on borrowings go up. So, it is important to take note of the prevailing economic conditions when applying for a business loan.
  2. Monetary Policy of RBI: The Reserve Bank of India uses the monetary policy to keep a check on the liquidity in the market. When the monetary policy is relaxed, the liquidity increases and there is more cash in the market and so the interest rates on loans go down. On the other hand, when the RBI tightens the monetary policy to check oversupply in the market, interest rates on business loans increase.
  3. Loan Demand and Supply: As with every commodity, the concept of demand and supply also applies to the loan products. When the demand for business loans in the market goes up, so does the interest rates and vice versa. So, if you are planning to apply for a business loan, do a check on loan demand and supply for your sector to get the best interest rates possible.
  4. Type of Loan: Interest rates on a business loan also depends on the type of loan you apply for. If you are getting a secured loan i.e. a loan that requires an asset as collateral, the interest rate is going to be lower as the lender already holds something of value to recover the money. On the other hand, if you apply for an unsecured business loan, the interest rate is going to be slightly higher. But you can also get an unsecured business loan with lower interest rates if you have optimized the internal factors that have an effect on your loan interest rates.

So, that’s that. Interest rates are one of the most important aspect of getting a business loan as lower interest rates help you in growth and higher interest rates may lead to a vicious debt cycle. Therefore, we advise that you analyze all internal and external factors that affect your business loan interest rates before applying for one. To know more about FinTech business loans, visit us at https://www.lendingkart.com/

Facing a Temporary Cash Crunch? Get a Short-Term Business Loan

Cash crunches can occur due to unfavorable business environment, changes in government policies (e.g. demonetization and GST) or seasonal shifts in sales. However, with some prudent financial management and the help of FinTech services, you can avoid problems like shortage of working capital loan which are usually associated with a cash crunch.

Here are some ideas to help you manage your finances and get through a cash crunch with relative ease.

Streamlining your Cash Flow

A positive cash flow statement allows you to have ready money when the need arises. Positive cash flow means that the amount of money coming into your business is more than the amount that is going out. Money earned through sale of goods and services and by providing other auxiliary services accounts for the cash that is coming in, while the money you spend on manufacturing, operations, rent etc. is the cash that is going out. Striking a positive balance between the two is not very difficult if you are using data-based metrics to scale your business operations.

Another thing that will help your business in maintaining a positive cash flow is the timely management of your receivables. Most working capital cash crunches arise because of delayed payments from your customers. When you are not getting paid on time for a product or service, you have to rely on alternate finance to run day-to-day operations, which eventually becomes a vicious cycle of debt and revenue shortfalls.

Paying your dues on time is also an important factor that reflects positively or negatively on your cash flow statement. Paying your rent and utility bills, vendor invoices, taxes etc. allows you to avoid penalties and fines, thus saving precious cash resources for business use. However, if you have a habit of missing due dates then it has a negative impact on your cash flow and restricts the amount of ready cash you have.

Getting a Credit Line

A credit line allows you to get a loan from a bank up to a specific limit. However, in this case you pay interest only on the amount you have presently borrowed. For example, if your credit limit is set at ₹ 10 lakh but you have borrowed only ₹ 2 lakh at present, then you will be paying an interest on the borrowed sum only. If you choose to withdraw another ₹ 1 lakh from the bank then your interest payment shifts accordingly to the current outstanding amount i.e. ₹ 3 lakh in this case.

While credit line is a good option for seasoned businesses, there is a downside to it as well. Credit lines are usually extended by traditional banking institutions which require a lot of paperwork and hassle to get one. New and upcoming business usually finds it hard to get a credit line for managing working capital and business expansions.

Using Credit Cards

A credit card issued in the name of your business can also help you overcome a temporary cash crunch. Since, the average repayment period on a credit card is about 21 days after bill generation, you can get up to 50 days of credit by timing your credit card expenses. If you use your business credit card on the first day of the monthly billing period, it gives you enough time to get the money back through revenues and repay it in time.

However, using credit cards also has its risks. If, for some reason, you are unable to repay within the stipulated period, you may find yourself paying a lot of interest.

Apply for a Business Loan

The best way to get your finances in line is by applying for a business loan. Now, a lot of people who own small and medium businesses are wary of getting into a debt trap. But a business loan is totally different than a personal loan or taking money from a private money lender. Business loans tend to have relatively low interest rates and are optimized for a business as per its earnings and expenditure.

If you have a healthy business profile, good credit rating, a reliable supply chain and pay your taxes on time, you can get business loans online from NBFCs like Lendingkart. Online business loans allow you to avoid the bureaucratic hassles of applying for a loan with a bank. They also have a faster processing time. For example, a completed application for business loan can get approved and funded within 3 days’ time by Lendingkart. However, it does require you to have valid proofs of the requisite documents.

Additionally, NBFC loans also come with a renewal facility which lets you borrow the same amount again once you pay off the existing loan. It is better than having a credit line actually, since you also get the facility of flexible EMI payments and increased credit limits. Lendingkart Finance allows you to repay your loan in monthly or bi-weekly payments, letting you adjust your liabilities according to your invoicing cycle. Moreover, as your sales / revenue increases, Lendingkart increases your borrowing limit, giving you access to more funds for working capital management or business expansion. Furthermore, as your relationship with the company matures and your business’s credit score improves, Lendingkart can lower the interest rate on your business loan as well.

NBFCs like Lendingkart are governed by Indian laws and the RBI and come under FinTech services which are especially designed for small and medium businesses. Right now, you can borrow short-term business loans up to ₹ 2 crore from Lendingkart to grow your business.

Concluding Thoughts

Getting small business finance in India has been a difficult thing for many years. With the traditional banking system leaning towards corporate finance, small and medium business owners often resorted to private finance or utilizing their savings for business use. However, the arrival of Internet of Things, e-commerce, business software and FinTech lending platforms like Lendingkart has made it easier for them to get quick finance with favorable interest rates and repayment terms. These services also help businesses in avoiding the risk associated with credit card finance and private lending, while making them more efficient in working capital management through cash flow control and FinTech lending services.

Why a Business Loan is Better than Liquidating Personal Savings or Assets

A number of external and internal factors can disrupt the finances of a small business. In many such cases, these financial disruptions require urgent capital infusion to keep the business competitive. While every small business owner would like to avoid such difficulties, sometimes getting financial help is the only answer.

Now, in Indian society, there is an inherent belief that taking any type of debt should be avoided. So, when we run into financial troubles, the first things we think of liquidating, are our personal savings and assets. The general wisdom is that those funds or assets can be reacquired, once the business returns to normal again.

Well, while it may be prudent to utilize funds from your savings to start a new business, doing so for an already established business doesn’t make sense. The reasoning behind this is quite simple. When you save before starting a new business, you are inadvertently putting some of the money aside for that purpose in your mind. However, when you accrue savings from an ongoing venture, you are putting that money aside for personal use. By utilizing those funds, you are cutting back on your and your family’s financial freedom.

One can argue that using savings to offset temporary financial difficulties without going into the hassles of getting a business loan or it allows you avoid losing money on interest repayments. At a cursory glance, these arguments may seem valid but there are many benefits of getting a business loan which are not always apparent.

Let’s have a look at some of the advantages of taking a business loan and analyze them in contrast to using personal savings for business use.

  • When you utilize your savings for meeting urgent business needs such as working capital finance, you effectively use up the funds that were meant for personal pleasure or emergencies. Now, if a personal situation arises which involves spending money, you have to resort to borrowing, which you were trying to avoid in the first place. Personal loans from banks and private money lenders come with interest rates as high as 36% per annum whereas business loans are offered at relatively lower interest rates and have many add on benefits.
  • It is easier to get business loans these days. Non-Banking Financial Companies like Lendingkart have revolutionized the Indian financial market for small and medium enterprises. Firms like Lendingkart are offering business loans at short-term small ticket finance to eligible SMEs in record turnaround time. A business can secure business loans of up to 1 crore within 3 days’ time.
  • By taking a business loan, you keep your savings free for alternate investment. If you are a prudent investor, you can offset the business loan EMIs by earning interest on your savings. This is a much better way to utilize your savings instead of using them outright for financing your business.
  • Taking a business loan also helps improve your business’s credit rating. A business loan connects your business to the financial grid, allowing credit rating agencies to assess your venture’s financial health and assign a rating. This credit score is one of the most important parameters used by financial institutions and investors when you are seeking funds for a future expansion of business. Repaying your business loan on time increases your credit score over time, establishing you as a reliable trading partner on the market. Once again, NBFCs like Lendingkart Finance have made it easier to secure business finance than traditional banking institutions which are often marred by bureaucratic delays and stringent requirements.
  • Business loans also allow you to claim tax benefits as the interest paid on a loan is tax deductible. So, in essence, on one hand you are earning interest on savings and on the other you are saving through tax benefits, a win-win.
  • Last but not least, a business loan gives you the flexibility borrow money again and again once you establish your credentials with a lender. For instance, Lendingkart gives you the facility to re-take a business loan upon complete repayment of an existing loan. This facility is especially beneficial for businesses seeking short-term working capital loans to streamline their finances.

Getting a business loan from NBFCs like Lendingkart

Also known as FinTech firms, non-banking financial companies like Lendingkart cater exclusively to small and medium businesses. Therefore, these financial companies are able to cater to the specific demands of a small business such as quick finance, flexible EMI options and competitive interest rates. Lendingkart is India’s leading non-banking financial company, having disbursed business loans in more than 600 cities.

Here are some of the salient features of Lendingkart business loans:

  • Online application process using web login or the Lendingkart App
  • Quick turnaround time of 3 days for approved loan accounts
  • Minimal documentation requirements
  • Loan amount based on current revenue / sales with an offer to increase the credit limit with increase in revenue / sales.
  • Short-term business loans that range between 1 month and up to 2 years.
  • One-time processing fee of 2% on the loan amount, waived upon renewal.
  • No prepayment charges or penalties if you decide to repay the loan amount early.

In Conclusion

So, while the idea of using your personal savings to overcome financial difficulties may seem lucrative at first, the benefits of getting a business loan are simply too many and too good to ignore. As pointed out earlier in the article, using your personal savings for starting a new venture is a different thing altogether as you have already earmarked some of that money for business investment. It might even be essential as most public and private lenders will be unwilling to lend to a newly established business. However, once things are setup and running, business loans become a better option for financing your working capital needs and business expansions. They allow you to separate your professional and personal finances and ensure that you have ready money for both types of opportunities and emergencies.

How to Improve the Chances of Getting a Business Loan Approval?

It takes money to make money. Even if you have a great business idea, it will take some initial investment to market it and bring it to fruition. Unsecured small business loans are a popular choice for quick business finance due to their small ticket sizes and faster approval process. However, not every business loan application gets approved, even if you are applying with a financier who has easier lending rules.

In today’s post, we are sharing the bare essentials, which you should get right, to improve your chances of getting a business loan approval

Improve a lacklustre credit score

If your personal and business credit scores are not in order, there is a high chance that your loan application will get rejected. Worst still, you might be offered a loan with exorbitant interest rates, which will only make it harder for you to repay the loan and further diminish your credit worthiness. So, before applying for a business loan, get your credit report and take steps to improve it. In case you have raises a dispute with the credit bureau, wait for its resolution before applying for a loan, otherwise a lender might deny your loan application based on faulty information.

Make your calculations in advance

If you are starting a new business, assess your financial needs and keep an eye out for lucrative business loan deals even if you do not need the funds immediately. Being aware of your business’s exact capital requirements and institutions that cater to your specific financial needs can speed up the loan approval process significantly.

Have a business plan

When planning for a business loan, have a business plan ready to share with the lenders to convince them of your commitment to repayment. The plan should have an executive summary that explains what your business does, and how you plan to make money. Also include a market assessment and data of present business expenditure.

Get the documentation right

A lender will ask for most recent years’ profit and loss statements, balance sheets and cash flow statements, so make sure you have them in order. Apart from this, business incorporation certificates, tax filings and address and identity proofs are a pre-requisite for business loan approvals. Check with the lender beforehand and get the documentation right to speed up your business loan approval.

Apply with FinTech lenders like Lendingkart

If you need a fast business loans, apply with a FinTech lender instead of traditional banks and NBFCs. Where bank and NBFCs take up to 10 days to process a loan application, a FinTech firm like Lendingkart will authorise loan disbursal within 3 days of application and approval. Moreover, FinTech lending comes with several other benefits like minimal processing charges, low interest rates, flexible EMI options, zero prepayment fees and quick renewals.

To know more about FinTech lending and apply for a fast business loan, click here.

KYC Documents – What You Have and What is Needed

Getting a business loan in India requires a lot of meticulous planning on a small business owner’s part. One aspect of this planning is getting the KYC documents in order. Here we have compiled a list of documents that you generally need when applying for a business loan.

A Checklist of Documents Required to Apply for Business Loans

  • For Identity Proof: Driving License / PAN Card / Passport / Voters ID Card
  • For Address Proof: Utility Bills (telephone, electricity, broadband) / Passport / Trade License / Rental Agreement / GST Certificate
  • For Financial Checks:Business related bank statements(generally, of preceding 2 years)
  • For Tax Compliance: Latest ITR (you may also be asked for the computation of Balance Sheet, income & Profit & Loss account for the last 2 years)
  • A Proof of Continuation
  • Other mandatory documents include, Sole Proprietorship Declaration, Certified Copy of Memorandum & Articles of Association
  • Audited financials for the last 3 years

Furthermore, the Business Loan Application Form is a mandatory document which is to be filled when applying for a loan with a bank.
However, if you apply for a loan with a non-banking financial company such as Lendingkart Finance, you can get a business loan approval without having to submit copies upon copies of your KYC documents. Simply register on the Lendingkart website or use the Lendingkart app on your smartphone to submit your business loan application.

The process offered by Lendingkart Finance is completely online, where you are required to submit minimal documentation.For example, when applying for a Lendingkart business loan, simply upload the following digital copies –

  • Proof of Registration
  • Any one of photo KYC documents
  • ITR Statement
  • Bank and GST statements

A Lendingkart business loan allows you to maintain the cash flow, upgrade business facilities and equipment and invest in business expansion. Lendingkart offers customised interest rates and flexible EMI options to make it easy for you to grow your MSME.

Visit us at www.lendingkart.com to know more.

Lendingkart Instant Business Loans App – Loans Under 5 Minutes

Lendingkart Instant Business Loans

Business loans for startups are a difficult thing to achieve. For existing businesses, the story is different. A business can apply for a working capital loan based on its age and turnover. Banks have been the usual go-to option for people and businesses for getting financial aid. Alternative digital lenders or NBFCs have become the better choice for businesses now. Lendingkart, as a digital lender, offers short term working capital loans to existing small businesses. One can apply for a business loan through the website or the Lendingkart Instant Business Loans app on Google Playstore.

Requirements for Applying for a Business Loan on Lendingkart Instant Business Loans App

One must bear in mind that this app is for running businesses. The following borrowers can apply for a working capital loan –

  1. Businesses more than 3 months old
  2. Business that are seeking a supplementary short-term loan for managing sudden emergencies

The business should have an annual turnover of at least INR 3 lakhs.

 

How to Apply for a Business Loan through Lendingkart Instant Business Loans App

The app available on Google Playstore is simple to understand. You can use this link to visit the website and download the app. Or you can just search for ‘Lendingkart’ on Playstore to get the following results.

Lendingkart Instant Business Loans in Playstore Search on phone

Use the highlighted result above to get to the following screen.

Playstore Page - Install Lendingkart Instant Business Loans

Tap on ‘Install’ to get started.

The app will access your Google account to verify your identity. It will require access to Photos/Media/Files, SMS, Contacts and Phone. Camera, WIFI and internet data access for video proof.

Open the application from the Playstore page or by selecting the LK icon in the app drawer.

Lendingkart Instant Business Loans Installed

Basic Information

In the first screen, tap on ‘Get Started’ and enter your registered mobile number in the following screen. You will receive an OTP through SMS to verify your phone number.

Lendingkart Instant Business Loans Getting Started and OTP Verification

Please note the following three details required to apply for a loan successfully.

  1. Details of your business (Type, Date of establishment, turnover, industry etc.)
  2. PAN Number
  3. Working bank account (use the one meant for your business)

In the ‘About Your Business’ screen, enter the details as asked in the following fields.
Lendingkart Instant Business Loans About your Business

For Registration type, you can choose any one of the following options.

  1. Proprietorship
  2. Partnership
  3. Ltd.
  4. One-person company
  5. LLP
  6. Limited company
  7. Not registered

Lendingkart Instant Business Loans - Registration Types

In ‘How old is your business’, 6 options are available. From ‘Planning to start’ to ‘More than 5 years’.

You can choose the industry type of your company from the following list.

Lendingkart Instant Business Loans - Industry type

Choose the annual turnover of your company, the acting owner of the company and the PIN code of the business address. Enter the details carefully as you cannot edit these later. Click ‘Confirm’.

Lendingkart Instant Business Loans - Details

If your business doesn’t meet the basic eligibility criteria of being 3 months’ old or having 3 lakhs annual turnover, you might encounter the following screen.

Lendingkart Instant Business Loans - Ineligibility Business Vintage TO

Credit Eligibility Information

If the application proceeds to the PAN details screen, enter the PAN details of the owner. In case there are multiple owners, you must enter the name and PAN numbers of multiple people.

Lendingkart Instant Business Loans - PAN Details
Press the ‘Confirm’ button and please wait till the application verifies your PAN details. This process hardly takes any time. The following screen has a progress bar.

Lendingkart Instant Business Loans - PAN verification

Based on your credit history and credit score, you might encounter either of the following screens.
Lendingkart Instant Business Loans - Post PAN Verification

Pre-approved Loan Offer and Bank Information

In case you reach the ‘Pre-approved Loan Offer’ page, you can view details of the loan amount and terms and conditions applicable. You can also choose the option of ‘Proceed for Higher Loan’. In that case, it will be a longer process that we will cover in another article.

Lendingkart Instant Business Loans - Pre-approved Loan details

After agreeing to the ‘Pre-approved Loan Offer’, your loan processing will be initiated.
Post that, you will come across the following screens. Use the ‘OK. Let’s Complete’ button.

Lendingkart Instant Business Loans - Post offer acceptance

Add a bank account where you need the loan, along with the current business and home address.

Lendingkart Instant Business Loans - Adding Bank Account and Address

 

References and Personal Identity Information

Thereafter, add two references of people you know and trust. You can pick them from your Contacts list if you want.

Lendingkart Instant Business Loans - Adding References
Lastly, you need to record a 5 second video of yourself holding your PAN Card. Try to keep yourself in the outline of the window.

Lendingkart Instant Business Loans - Selfie video

Lendingkart Instant Business Loan App Process Completion

From here, you can go to the ‘Dashboard’ to view the details of your application.
In case your company is a ‘Pvt. Ltd.’, you must complete an online application form. ‘OK. Go to Application Form’.

Lendingkart Instant Business Loans - Online Application for Pvt. Ltd.

Important Points regarding Lendingkart Instant Business Loans App

There are a few things to keep in mind when using the application on your phone. Please ensure –

  1. Your phone camera and mic work
  2. The phone has internet access, through WIFI or through 3G/4G
  3. The bank account you provided has business transactions
  4. Your email address works, and you can access your emails
  5. You use your primary mobile number for registration
  6. You follow the instructions on the screens perfectly

While using the Lendingkart Instant Business Loans app, it helps if you –

  1. Use a current account as your bank account
  2. Provide as detailed information about owners as possible
  3. Provide detailed contact addresses to receive the agreement
  4. Connect your bank account (it is much faster that way and secure as well!)

Need more help while applying through the app? Stuck in the middle of the process? You can always reach the team at this number – 07949066222.

Small Business Loans – The Working Capital Angle

Ever since I started off in a retail lending team at HDFC Bank and even now, as a decision-maker in one of the leading fintech lenders of the nation, I have always been asked by clients about the kind of business loan that would be the best for every situation. Simply put, there is no single loan that comes with a ‘one-size-fits-all’ feature. But when it comes to which business loan can be used in many situations, if not all, I could lead you through my insights and let you decide for yourself why working capital loans offer the best advantages. The current market scenario is rife with financial options to help in the smooth running of any business, small or big. These options could include multiple banks and NBFCs or even new age fintech firms like us, the Lendingkart Group. Though the sources are a dime a dozen, availing business finance through official channels is always bound by regulations and people resort to borrowing from friends and family or the local moneylender. Continue reading

Small Business Loans – Why and Why Not

When it comes to financials that concern your organization’s growth and prosperity, you would never want to take a chance, would you? Additionally, when it comes to your personal life, you’d always want a steady flow of income and a safety net to secure your and your family’s future as well. This brings us to a rather peculiar scenario of growth prospects. Addressing the elephant in the room, we would need to look at the importance of business loans and the ways in which one should be using them best. Business loans, if taken at the right point of time can further an organization’s reach and scope in a broad manner. On the flipside, taking a business loan without having a plan for progress in mind can be more of a liability than an asset. So, what points should you focus on, as a small business owner, before going in for a working capital loan? There are a few key questions that you should ask yourself before you decide on a business loan – Continue reading