Business Loan in Ghaziabad

Ghaziabad is a city in Western Uttar Pradesh and is a major industrial city in the state. Ghaziabad is one of the country’s manufacturing centres with the presence of multiple industries and factories around.

Ghaziabad is close to India’s national capital, New Delhi and shares some of its part with the NCR region. The city has a thriving population of millions and is a metropolis with many planned residential communities calling it home. 

If you are looking for business loans in Ghaziabad due to expansion of business or procurement of plant & machinery, read on to know the eligibility and documentations required. 

What is a Business Loan?

Every business needs funds to operate over a long period of time. As such, business loans are the amount disbursed by banks and NBFCs to companies that are looking towards growth or those that are newly formed. 

Business loans fulfill production and expansion goals of a business by providing them with the capital to do so. Business loans are provided by banks and Non-Banking Financial Institutions (NBFCs) online as well as offline through a branch office.

Business loans are of two kinds:

  1. Secured loans: Secured business loans require collateral from the borrower to be pledged against the amount borrowed. These are called secured loans because the risk of default is low.
  2. Unsecured loans: Unsecured loans are the ones which do not require any kind of collateral from the borrower. They are so called because the risk of default is high, for which the lender charges a higher rate of interest.

Business loans are becoming increasingly customized to meet the specific needs of different businesses.

Features and benefits of business loans

1. Flexible loans

Business loans are often flexible in terms of repayment. The borrower can choose to repay the loan amount in whichever way he prefers.

2. Immediate approval 

Upon fulfilling the eligibility criteria, business loans are quickly approved and disbursed by banks and NBFCs.

3. Minimum Documentations

  1. Business loans often require minimum documentations. 
  2.  Up to Rs. 2 crore loan amount 
  3. With a good credit history and performance of the business and depending on the requirements, business loans can be granted for an amount up to Rs. 2 crore. 

4. Helps achieve business goals

Business loans often help enterprises to meet their goals and objectives like expansion, increasing working capital, investment on inventory or machinery, or just creating a good credit history.

Business loan eligibility:

A business has to meet certain requirements before it is eligible for a business loan. 

Although different lenders have different eligibility criteria, business loans are offered to enterprises with a good turnover and CIBIL score

The applicant has to submit some documents which prove that his/her business is performing well and running in profits. Based on these documents, the lender decides the loan amount, tenure and interest rate. 

 These are some of the general criteria that lenders take into account:

1. Eligible entities:

Business loans can be obtained by self-employed individuals, sole proprietors, limited liability partnerships, partnership firms, public and private limited companies, MSMEs, NGPs and Co-operative societies. 

2. Applicant age

The age of the applicant should be minimum 21 years during application and not more than 65 years during maturity of loan. 

3. Credit history

The applicant should have a good credit history and a CIBIL score of over 650. 

4. Resident

The applicant should be an Indian citizen.

5. Business vintage and performance

The business should be in running for the past 2 years continuously with profits and should not be in any kind of debt.

6. Annual turnover

The annual turnover of the business will be decided by the lender.

Documents required to apply for a business loan

Following are the documents required to apply for a business loan:

ID Proof

Aadhar, Passport, PAN card, Voter ID, Driving Licence

Address Proof

Passport, PAN card, Voter ID, Driving Licence, Electricity Bills

Bank statement

Last 12 month’s bank statement

Income statement

Tax invoices for the past 2 years, payslip for the last 2 months, bank passbook, Form 16

Proof of business ownership

Rent agreement, Sale Deed, Lease Documents, Registration and incorporation certificates, trade licences.

Business loans in Ghaziabad

Business loans in Ghaziabad are disbursed by banks and NBFCs. You may approach any institution as per your choice, but it is advisable to understand your financial needs, compare the best business loans and then go for the one which will help you achieve your goal. 

Banks offer a lower rate of interest but have stringent criteria for business loan eligibility. NBFCs are more flexible with the eligibility and are more likely to disburse loans to individuals with relaxed criteria but charge a higher rate of interest.

These are some loans offered by lenders to businesses in Ghaziabad:

  1. Term loan
  2. MSME Loan
  3. Mudra Loan
  4. Working Capital Loan
  5. Letter of credit
  6. Invoice funding
  7. Microlending
  8. Merchant cash advance
  9. Small Business Finance

Steps to apply for a business loan

You can apply for business loans in India both online and by visiting the nearest branch of the lender. 

Online:

  1. Visit official the website of the lender
  2. Select your preferred business loan
  3. Download the application form and fill in the details
  4. Submit the application form 
  5. The application will be verified by the lender
  6. If the loan is approved, the amount will be credited to the applicant’s account in 10-15 working days.

Offline:

  1. Visit the nearest branch of the lender
  2. Ask for the business loan application
  3. Fill in the details with the attested form and submit all required documents
  4. Lender will verify the information and documents
  5. The lender will disburse the loan amount if the applicant is found to be eligible.

Business Loan in Vijayawada FAQs:

1. What is the lowest rate of interest on business loans in Ghaziabad?

The lowest rate of interest for business loans in Ghaziabad is 13%.

2. How long does it take to get a business loan in Ghaziabad?

Upon meeting the eligibility criteria and successful verification of documents, business loan amount is generally disbursed within 48 hours in Ghaziabad.

3. Who is eligible for a business loan?

Business loans can be obtained by self-employed individuals, sole proprietors, limited liability partnerships, partnership firms, public and private limited companies, MSMEs, NGOs and Co-operative societies.

4. Are there any other kinds of charges levied on business loans apart from the interest?

Yes. There are many different kinds of fee involved in business loans like processing fee, administration fee, application fee, legal fee, etc.

5. Is EMI service available to pay small business loans in Ghaziabad?

Yes, you can pay the business loan amount and interest levied in instalments to the lender. The EMI would depend on the amount of loan, tenure and rate of interest.

6. How to apply for a business loan in Ghaziabad?

1. Visit the business loan application form 2. Fill in the details with the attested form and submit all required documents 3. Lender will verify the information and documents 4. Lender will disburse the loan amount if the applicant is found to be eligible.

7. What is the minimum and maximum repayment tenure for a business loan?

Minimum repayment tenure for business loans is 12 months, while the maximum is 60 months.

8. Can I get a business loan without providing any collateral?

Yes, you can avail an unsecured business loan that does not require any collateral to be pledged. However, interest rates for unsecured business loans are higher.

9. What is the credit score needed for a small business loan?

For small business loans, you need a CIBIL score of 650 or higher, depending upon the lender.