Business Loan in Kanyakumari

What is a Business Loan?

When a person needs to expand their business or wants to set up a new business, one likely borrows from the loans available through lenders. Such a loan is called a business loan. If one is taking a loan for a small or medium-sized business, one can easily do it from us. Knowing about a business loan makes it easy to apply for it. From the benefits, lenders involved, risks, formalities, terms, and conditions – one needs to take proper care before taking the loan.

Features of Business Loan in Kanyakumari

The business loans offered by us in Kanyakumari for small and medium businesses are quite customizable. As compared to the banks, business loans in Kanyakumari availed by us are not dependent on the bureaucracy norms. The business loan offered by us has a smooth application process, fast disbursal process, and quick approval. Not only is our loan process fast and efficient but also has minimal human intervention thus speeding up the business loan process that also makes this process more transparent.

Eligibility Criteria for Business Loan in Kanyakumari

For business loans in Kanyakumari, the eligibility criteria are as mentioned below:-

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

Age Limit:

  1. 21 years – minimum age limit
  2. 65 years – maximum age limit

Income:

The applicant needs to have a proper income source. The business loan in Kanyakumari must be profitable for at a minimum of 1 year.

Business Loans in Kanyakumari: Documents Required

  1. Below mentioned documents are required as identity proof:
    1. Driving License
    2. Aadhaar Card
    3. Passport
    4. Voter’s ID Card
    5. PAN Card
    6. Any Identity proof by the Government of India
  2. Below mentioned documents are required as address proof:
    1. Aadhaar Card
    2. Voter’s ID Card
    3. Driving License
    4. PAN Card
  3. Bank statement of previous six months
  4. PAN Card of the company or person
  5. Previous year’s ITR
  6. For a PVT LTD business or company or of any type except properitiership then the below-mentioned documents are necessary:-
  7. For a company audited balance sheet
  8. MoA
  9. Resolutions
  10. Attorney Power
  11. P&L statement
  12. Ownership Declaration
  13. Any other document depending on the status of the company.

Rates of Interest on the Business Loans in Kanyakumari

The below-mentioned factors which affect the interest rate are:-

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

Basically, all the business loans with short tenures have greater EMI and those with long tenures have fewer EMIs

Business Loan in Kanyakumari

Interest Rate

18 to 20% per annum

Processing Fees

Between 2 to 3% (one-time fee)

Loan Tenure

1 year to 3 months

Pre-closure Charges

None

Eligibility Criteria

Business must have a turnover higher than Rs ninety thousand for a minimum of 3 months.

Loan Amount

Rs. 50,000 to Rs. 2 Crore

Repayment Installments

Monthly or Bi-weekly (Flexible)

Different Charges for Business Loan

  1. Stamp Duty and other charges – As per the state law of Tamil Nadu, charged on the loan amount.
  2. Rate of Interest This lies between 1.5% to 2% per month. The interest rate for every business loan depends on the amount of loan post proper evaluation, and the financial considerations of the same.
  3. Processing Fees: One-time fee on the loan amounts 2 to 3%.

Benefits of Business Loan in Kanyakumari Offered by Us

The benefits are mentioned below:-

  1. Apply for a business loan in online mode only – fast and convenient
  2. Approval within 48 hours
  3. No collateral is required on the loan
  4. No hidden charges.
  5. No extra charges for loan prepayment.

Calculating Business Loan EMI

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

Here,

‘E’ is for the EMI

‘n’ is the loan tenure

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

‘P’ states the loan amount

Business loans in Kanyakumari FAQs:

1. Is a business loan offered to those who are expanding their existing business?

Yes, a business loan is offered to those who are expanding their existing business.

2. State the various benefits of the loan application online?

Benefits for loan application online are:- ● The process gets completed in just three steps - enter your personal details, then business details, and lastly the bank details. ● Within 3 days, you get to know about loan approval ● No hassle for going to an offline center.

3. Is a collateral-free loan offered by us?

Yes, we offer unsecured loans which are collateral-free. So, one is not required to submit the loan such as property or others.

4. What are the charges that one needs to pay on the foreclosure of a loan?

We do not charge any penalty on foreclosure of loans.

5. Can a person apply for a loan even if their credit score is low?

Yes, a person can apply for the loan even if their credit score is low but it might lead to a higher rate of interest as credit score plays an important role in determining interest rates.

6. What should one do to speed their business loan application process?

As you already know that we offer an online application process for speeding up the loan application process but it is advised that one applies with the correct application process.

7. State the steps required for applying for the business loan through us

The application process for the loan requires three simple steps - save one’s personal details, then fill up the business details and finally upload the required documents and then enter your bank details.

8. Can one reapply for the loan if their application gets rejected?

Yes, one can reapply for the loan if their application gets rejected.

9. What is the process for checking loan application status?

The process for checking loan application status is by logging in to the loan account and checking the dashboard to see if their loan application status is approved.

10. How can a person improve their credit score?

For improving your credit score, one should start paying bills timely and repay the loan EMI regularly. One should also check if they have completed the payment but if it is not updated it can lead to a false low credit score.