Loan for Electrical Parts and Equipment Business

Every individual needs certain types of electronic products. People from the middle class to upper class use electric products on a regular or daily basis. Nowadays, household items like televisions, refrigerators, mixers, washing machines, etc… are easily available and marketed through multi-brand electronic stores.

Several electronic retailers also suffered due to the COVID-19 Lockdown. They were forced to close for an extended length of time because delivery methods were blocked even though they took orders from clients who did not visit the shop. In 2022, as things return to normal and businesses reopen, they must make up for the massive losses they’ve suffered during the lockdown. These businesses require help in the form of a business loan to pay operational expenses, employee salaries, and setup improvements.

Financial institutions offer electronic product suppliers a specific type of business loan for purposes such as showroom renovation, inventory management, staff hiring, advertising and marketing, managing working capital, etc.

How To Utilize Electrical Parts And Equipment Business Loan Effectively?

The following are some possible uses for the business loan provided to electronic retailers: 

1. Renovation: For customers to have a variety of options at their fingertips and quickly choose the equipment that best suits their needs, enterprises must reinvent themselves and engage with the e-commerce platforms in the shops.
2. Introduce innovative technologies: It’s time for electronics retailers to step up their game and make the technical adjustments needed for the specific retail industry. New technologies and business strategies must be adopted to thrive in these competitive industries.
3. Reduce company debt: Combining lesser debts into a single EMI is one of the main advantages of these loans. It not only reduces the burden on your monthly spending strategy but also assists in coordinating the repayment of your debt with the timing of your invoices. Additionally, by merging your business debt, you may be able to pay off other obligations easily because you can now extend the payback period for a year.

Features Of Business Loan For Electrical Parts And Equipment Business

1. These loans include a variable ticket size that ranges from Rs. 50,000 to Rs. 2 crores.
2. Approval of  loan and disbursements usually occurs within three days from the date of application. 
3. Unsecured business loans are easily approved by lenders. In other words, collateral is not required to obtain the loan.  
4. There are no additional fees or hidden costs associated with these loans. The only upfront processing fee assessed is between 2-3 percent, depending on the amount of the loan. It allows you to obtain a principal disbursal that is more valuable than any other available business loan.
5. It doesn’t include any prepayment charges.

Who Is Qualified for a Loan for Electrical Parts And Equipment Business?

To process a loan for an equipment business, the eligibility requirements have been reduced to minimal necessities, such as: 

1. Applicants must be between the ages of 21 and 65 to be eligible to request a loan for equipment. 
2. The enterprise must be at least 6 monthd old.
3. Income Tax Return (ITRs) documents for the last two years.
4. Bank statement for the last 12 months
5. The applicants cannot afford to have a past loan default.

Eligibility Criteria for Loan for Electrical Parts And Equipment Business