Business Loan in Jalandhar

A business loan is something which a person borrows from a lender which is used to invest in any existing or new business which is being set up by the person. Whether you are taking business loans for a medium or small sized enterprise or even large business, it is important to know how any business loan functions.

From the lenders involved, benefits, formalities, risks or conditions or terms – one is required to take utmost care while taking up a loan. Overlooking a small amount of information can lead to higher interest rates or unwarranted charges.

Features of Business Loan in Jalandhar

We offer various customizable business loans in Jalandhar for medium and small businesses. Unlike the banks, business loans offered by us are free from the red tape of bureaucracy. We have a very easy application process, quick approval and fast disbursal process. The interface is efficient and fast with minimal human interaction which not only speeds up the process but also makes it much more transparent.

Eligibility Criteria for Business Loan in Jalandhar

The eligibility criteria for business loans in Jalandhar are as mentioned below:-

  1.   Partnerships
  2.   Individuals
  3.   Proprietary Firms
  4.   Self Employed People
  5. Limited Liability Partnerships

Age Limit:

  1. Twenty one years is the minimum age limit
  2. Sixty five years is the maximum age limit

Income:

The person must have a source of income. The business for which loan is being taken must be profitable for at least one year.

Documentation Required for Business Loans in Jalandhar:-

  1.   PAN Card of the person or company
  2.   Below mentioned document are required as identity proof:
    1. Aadhaar Card
    2. Driving License
    3. PAN Card
    4. Passport
    5. Voter’s ID Card
    6. Other Government Identity proof
  3. Below mentioned document are required as address proof:
    1. Voter’s ID Card
    2. Aadhaar Card
    3. PAN Card
    4. Driving License
  4. Latest 6 months bank statement
  5. ITR of the previous year
  6. Audited balance sheet, if applicable
  7. If the business is a PVT LTD company or in any other type apart from proprietorship then the following documents are also required:
  8. Attorney Power
  9. MoA
  10. Ownership Declaration
  11. P&L statement
  12. Resolutions
  13. Other documents as required as per company status.

Rates of Interest or Charges Business Loan in Jalandhar

Rates of Interest depends on the below mentioned factors:-

  1.   Business Profitability
  2.   Cash Flow
  3.   CIBIL Score
  4.   Inventory Ratios
  5.   Net Worth
  6.   Tenure of loan
  7.   Working Capital

Generally, business loans with longer tenure have lower EMIs and those with shorter tenures have higher EMI.

Business Loan in Jalandhar

Interest Rate

1.5% to 2.0% per month

Processing Fees

Fee lies between 2 to 3%

Loan Tenure

12 months to 36 months

Pre-closure Charges

Nil

Eligibility Criteria

The turnover of the business must be greater than Rs 90,000 for three months

Loan Amount

Rs. 50,000 to Rs. 2 Crore

Repayment Installments

Bi-weekly or Monthly (Flexible)

Different Charges for Business Loan

  1. Statutory Charges and Stamp Duty – This is applicable under the state law of Punjab.
  2.  Rate of Interest – It lies between a range of 1.5% to 2%. The rate of interest for each business loan is decided on the loan amount after business evaluation, financial considerations, tenure, etc.
  3. Processing Fees: One-time fee lying between 2 to 3% on the loan amount.

Benefits of Business Loan in Jalandhar Offered by Us

The benefits of the business loan are:-

  1. We offer a convenient way for applying for business loans which is done through online mode only. Our plans are curated based on innovative solutions that involve paperless applications completely.
  2. There is tension for losing documents as the form is filled up online and as the documents are uploaded online – one doesn’t need to apply to get photocopies of the document.
  3. There is no need to wait as the loan is approved within 48 hours of the application.
  4. There is no provision of collateral loans which means one doesn’t require any guarantee for getting a loan.
  5. There are no hidden charges.
  6. The lending capacity for the loan range is quite wide and lies between Rs 50,000 and Rs 2 crore.
  7. There are no charges for prepayment of loan.
  8. We provide you loans with ease of access so that you don’t need to worry about the loans and can concentrate on the business.

Calculating Business Loan EMI

The calculation of business loan EMI can be done using the simple formula as mentioned below:-

E = P x r x [(1+r) n / (1+r) x n-1]

Here,

‘P’ states the amount of loan

‘E’ is for the EMI

‘r’ is for rate of interest for a monthly/bi-weekly basis

‘n’ is tenure of the loan

The business loan EMI calculator using the above-mentioned formula for calculating the EMI of the loan using a web interface. This loan calculator will help a person in determining the rate of interest, loan amount, and breakdown of the EMI and also the principal amount and interest rate paid per EMI.

Think carefully before taking a business loan

A business loan will help a person in expanding their business or building a new one but this can also lead to great stress if one doesn’t consider all the aspects of the loan properly. One should keep in mind what one can do in case the business is not fulfilling the loan EMIs.

What are the benefits of applying for a loan online?

The following are the benefits of applying for the loan online:-

  1. The entire application process gets completed in three steps – personal details, business details and bank details.
  2. Within a span of 3 days, one gets to know about the status of their loan approval. The offline process takes about 8 to 10 days.
  3. One doesn’t have to go through the hassle of visiting an offline center.

Business loans in Jalandhar FAQs:

1. Why does one take a business loan?

One generally takes up a business loan for funding the projects and the business investments as well. A business loan can help the person in completing those aspects of the business which has been delayed due to lack of funds.

2. What kind of loans are offered by us?

We offer collateral-free loans with lower rates of interest. So there is no need to submit any loan guarantee like property, etc. This makes it less risky for business owners.

3. Is there any penalty on the foreclosure of loans?

There is no penalty on the foreclosure of the loan plus there are no such hidden charges on the business loan offered by us.

4. What is the likelihood of getting a business loan offered by us?

We offer loans of various sizes so there are more chances that your loan gets approved as compared to a bank where chances are low.

5. How to speed up the business loan approval process?

Although loans are processed by us faster as compared to the bank, it would be much faster if you provide correct documents and follow the application process properly.

6. What are the steps involved in the application process of a business loan offered by us?

The entire application process gets completed in three steps - enter your personal details, enter the business details and upload the documents and finally save your bank details.

7. What is an unsecured loan?

A loan that doesn’t require any collateral or guarantee. The interest rate of such loans is higher as compared to secured loans but the risk for business owners is higher as compared to unsecured loans.

8. How can one check their loan application status?

One can check the status by logging in to their account and checking the dashboard.

9. What should one do if their credit score is low?

You can change your credit score by paying bills on time and repaying loan debts. One should also check if there is any incorrect entry that is negatively impacting the credit score.