Business Loan in Hyderabad

The Scenario

Hyderabad, the capital of Telangana is the hub for pharmaceuticals, IT companies and various MNC companies, due to the city’s large area and ease of norms. Hyderabad’s Government has invested greatly into the city’s infrastructure in the hopes of making the city the first every pharma city in the country. Considering the rise of online pharmacy in the city, the industrial sector is constantly growing and is widely seen as the country’s major distributor of bulk drug and vaccine production. Also, Hyderabad is a prominent location for aerospace, computer and electronic related hardware industry.

Business Loan in Hyderabad

Such business opportunities are sure to catch the interest of enterprising entrepreneurs, who can start their businesses here and take advantage of the growth opportunity here. Listed below are the reasons why taking a loan in Hyderabad is a good move and the documents that are required when applying for a business loan here.

Why Take a Loan in Hyderabad

  1. Fair interest rates – While there are many entrepreneurs who opt to take a loan from a renowned bank, they should remember the interest rates levied can be staggering and discouraging. In light of this, entrepreneurs can opt for digital lending as it provides the customer with interest rates that suit their requirements.
  2. Customised needs – different businesses have their way of operating and as such, requires a different business loan to function. Thanks to the various loan opportunities in Hyderabad, an entrepreneur can select the loan suited for them and help their business grow in the right path.

Criteria for Applying for Business Loans in Hyderabad

As is the case with anywhere else, business loans are provided to an individual, partnership, a limited partnership; wherein the partners are less liable in the company, self-employed or a proprietary firm. To fit the requirements as set by the bank, there are a lot of factors that need to be considered. Entrepreneurs should remember that each bank that offers loans have their criteria required before sanctioning the said loan. Some of the important needs are

  • The customer is required to be within the age limit of 21 – 65 years
  • The business the applicant is applying for should be making a profit for the last year.
  • The yearly income of a person applying should at least be RS. 200,000.
  • A co-applicant choice is common but optional. In most cases, having co-applicants is not a mandatory field to apply for these kinds of loans.

Mandatory Documents when Applying for a Business Loan in Hyderabad

  • A proof of identity seen on an Aadhar Card, Passport, Voter ID, Pan Card or Driver’s License
  • The applicant should carry a copy of their Pan Card or the company
  • Proof of address, which can be seen on the Driver’s License, the Voter ID, the Permanent Account Number or PAN Card and the Adhaar card
  • A summary of bank statements for half a year or a period of 6 months
  • ITR statement for the past year as well as an audited balance sheet and the P&L statement for two years
  • Any obligations of debt
  • Application form
  • Additionally, other documents can include MoA, Resolutions, Power of attorney, declaration ownership or other documents required by the loan lender or the bank.

Features and Benefits of Business Loans in Hyderabad

  1. No collateral or security is required when availing a Business Loan in Hyderabad
  2. Business Loans here are flexible and come with easy repayment tenures
  3. Only the basic documents are required when applying for a Business Loan
  4. Following approval on the applications, the funds are almost immediately transferred to the applicant’s bank account.

Charges and Interest Rates for Business Loans in Hyderabad

The interest rates for a business are found based on different aspects such as the inventory, capital, the profitability of the business, total net worth, the CIBIL score and loan tenure. Normally, when a loan has a low EMI, it has a much longer date, and on the other side, an unstable or risky business will have a much higher EMIs.

Loan type

Amount size

Processing fee

Tenure period

Interest rates

Collateral free business loan

Starting from Rs. 50000 up to 1 Crore

2%

Between 1- 36 months

16%-27% per year

Charges and Nature on Business Loans

Aside from the charges mentioned above, other charges should be noted by the entrepreneur. Some of them are commitment charges, prepayment charges and foreclosure charges. These charges are all calculated and decided when the loan is being processed. Also, the charges levied will be different from one loan to another, based on the various criteria of the loans.