Business Loan in Ludhiana

Want to start a new business or need to expand the existing one? But worried about the finances? Well, then keep these worries aside as all you need to do is to apply for a business loan.

Business loans are a necessity to take care of the growth, employees, raw materials, and infrastructure. A business loan makes sure the capital is in flow and a business is able to manage its profits and loss efficiently.

We provide a hassle free business loan in Ludhiana to make you achieve your entrepreneur goals. Ludhiana being a hub of many small and large scale enterprises is an ideal place to start and grow business. And we know that for any business to flourish one needs to invest into it.

Ludhiana is famous for its hosiery industry and the products are in demand around the globe. Ludhiana is also well known for cycle manufacturing, light engineering and textile industry. The city is a desirable place to start a business or to expand the existing enterprises.

Lendingkart offers all the financial help in a convenient way to truly make your business stand out in the Manchester of Punjab, Ludhiana. Getting a business loan in Ludhiana is now getting easier and convenient.

Why do You Need a Business Loan

While it is pretty straightforward to someone who is starting a new venture that a business loan is necessary to make the enterprise stand and run. Initial capital investment is necessary and desirable.

But, even existing profitable businesses also make use of business loans from time to time for good reasons. One of them is to enlarge their horizon of profit making.

One can apply for a business loan in Ludhiana for one or more of the following reasons:

  1. One needs to buy a property to set up business
  2. To meet the expenses of license, registration, other paper-work and official formalities
  3. To buy equipments or raw materials
  4. Maintenance of existing machinery or stuff
  5. Infrastructure maintenance and development
  6. To purchase or process raw materials
  7. Transportation or delivery facilities
  8. Working capital that includes pay off to employees
  9. To achieve business goals
  10. Business expansion

Ludhiana is among the best places to start a new business at the place or for a business expansion. And Lendingkart helps you in achieving all these goals by providing financial assistance to your business.

Types of Business Loans

Different business goals and specific requirements account for a specific business loan. Depending upon the business requirements, a business loan is classified into following categories.

  1. Term Loan: As the name suggests, the loan is sanctioned for a fixed term. This type of loan is generally taken to keep a check on the capital expenditure. The term of the loan depends upon if the loan is secured or unsecured. An unsecured loan is sanctioned for a time range of 1 to 5 years while the time period of secured loan can vary between 15-20 years.
  2. Start-Up Loan: These days people are enthusiastic about start-ups. With innovative ideas in mind, the younger generation these days is coming up with new and socio-economical friendly business ideas. All they need is a little push, a lot of support and some financial assistance. Business registration slip along with the recent credit history of the owner, or of the company if possible, can be considered to sanction a start-up loan.
  3. Working Capital Loan:This is one of the most common types of business loan borrowed up by businesses. A working capital loan keeps the cash flowing and the company working all the time. During cash shortages or in off-season for a business, the working capital loan helps in balancing the company’s cash requirements. During peak season, a working capital loan ensures there is enough cash flow to look-after every aspect of the business.
  4. Loan Against Property: Such type of loan is sanctioned when the borrower requires a huge sum of money. As the name suggests, the loan can be availed by mortgaging any property for a specific time duration. The property needs to be free of any sort of disputes or litigation.
  5. Invoice Financing: Small businesses sometimes face cash crunch due to a lag between raising invoice and receiving payments from the clients. To tackle this period, a loan can be availed on a specified interest over the invoices. The loan is paid off once the payment is received.
  6. Equipment Financing: Many businesses that involve manufacturing or processing of items need to purchase and maintain certain machineries for their business. These manufacturing tools and machines are expensive and businesses generally prefer to go for equipment financing loans. This is the most preferred type of loan for manufacturers as it is generally inexpensive as compared to others. Also, the equipment in question is taken as a collateral along with other securities. 
  7. Overdraft: An overdraft can be taken in lieu of collaterals or securities. In this type of financial assistance an overdraft is fixed by the lender based on the credit history of the borrower organization. The borrower then withdraws only the required amount from the overdraft and is liable to pay interest only on the sum utilized.
  8. Merchant Cash Advance: Such a loan is provided to businesses on the basis of daily credits of the company. The borrower repays the loan on a daily basis depending upon how the business has one that particular day. One can repay a large amount when the business has done really well or the repayment is low if the business is slow that day.
  9. Business Credit Card: It is not the very first choice for businesses, but a loan on a business card can be taken for a short-term but immediate money requirement. Loan on business credit cards can give you cashbacks or other offers, but generally the rate of interest is high with this option.
  10. Women Business Loan: To boost the morale of women entrepreneurs many financial institutions offer business loans dedicated to women only. The loan includes flexible loan amount, start-up loans, discounted interest rates etc. The loan processing is also prioritized and is fast.

With so many options of loan available to one in Ludhiana, one is advised to choose wisely and as per the need of the business. The amount required, time duration, interest rates etc should be kept in mind for a right decision.

Eligibility Criteria to Apply for a Business Loan

Lendingkart offers business loans in Ludhiana at convenient interest rates and with hassle free and easy processing. Existing businesses and start-up ventures both can easily apply for a business loan in Ludhiana through Lendingkart. However, one needs to meet some of the eligibility criteria to borrow business loans.

  1. Age limit: Anyone between the age of 21 years to 65 years is eligible to avail a business loan.
  2. Business duration: The business should be established or in existence for at least 6 months.
  3. Turnover of company: The minimum turnover of the business for the last 3 months should be Rs. 90,000.
  4. Exclusions: Some of the organizations or entities are excluded from the eligibility list of start-up loans or business loans. Trusts, NGOs and charitable institutions are among these excluded entities.
  5. Small Business Administration (SBA) finance list: If the business is located in a negative location or if the business itself is excluded by SBA finance, then the applicant is not eligible to get a loan.
  6. Bank statement of the business  is required while applying for a business loan.

Applicants are advised to check eligibility criteria carefully before applying for a loan.

Documents Required to Apply

If one fulfills the eligibility criteria to apply for a business loan, then getting a loan is easy just by submitting the required documents. One needs to provide some necessary documents to apply for a business loan from Lendingkart.

For individual businesses, LLCs, private limited companies, partnership firms or proprietorships the following documents are required

  1. A bank statement for the last 12 months period
  2. Address proof or identity proof
  3. A valid business registration proof
  4. Partnership deed for partnership forms
  5. Business PAN card for proprietor
  6. Aadhar card for proprietor
  7. NOC from municipal corporation

Start-ups need to provide with following documents:

  1. A valid and government approved identity card of the applicant.
  2. The applicant needs to furnish income proof for the last 2 years. This might include a bank statement.
  3. Business ownership documents that may include sole proprietorship declaration, certified copies of memorandums, proof of association with the business for which a loan sought need to be submitted by the applicant.

With easy documentation we provide entrepreneurs and start-ups with all the necessary financial help in Ludhiana.

Features of Business Loan through Lendingkart

Availing a business loan through Lendingkart in Ludhiana will offer you with following features

1. Loan amount: Lendingkart offers you with a business loan amount as minimum as Rs 50,000 to a huge sum of Rs. 2 crores. The flexible amount range helps with small and medium enterprises to achieve their various business goals. The flexibility in loan amount is also ideal for start-ups.

2. Rate of Interest: A business friendly interest rate is offered to the entrepreneurs that is not going to create more financial burden on their shoulders. A short summary is provided in the table below

Type of Loan

Interest Rate (in percentage), duration

Business loans

1  to 2, monthly

Start-ups loan

15 to 2, annually

Commercial loan

15 to 27, annually

3. Loan Processing Time: A fast document verification process and even quicker loan sanctioned time helps meet the business requirements on time. Lendingkart disburses the sanctioned loan amount within 3 working days once the loan is approved.

4. Tenure: The loan repayment can be done monthly or bi-annulaly as per the comfort of the business. Also, the time duration of the loan is such that the applicant gets enough time to repay the loan amount. The time duration for different types of loan is tabulated below

Type of Loan

Tenure

Business loans

Upto 36 months

Start-up loans

Upto 24 months

Commercial loans

Upto 24 months

5. Collateral: If the eligibility criteria is satisfied by the applicant and all the required documents are furnished then an unsecured loan without any collateral is sanctioned to the applicant. No collaterals are required.

6. Loan processing charges: No hidden costs are there in the process of the business loan. Lendingkart offers loan processing at a standard fee which ranges between 1 to 2 percent of the sanctioned loan amount.  No pre-closure charges are applicable. The applicant repay the loan even before the tenure without any additional charges at any given point of time.

7. Extension of loan duration: Lendingkart is also considerate about the difficult times of a business. During a time of crisis, we can extend the tenure of the business loan. The extension can be given for upto a period of 6 months. This also depends on the guidelines set by Lendingkart about such extensions of tenure.

 Easy documentation, quick money disbursal, no collaterals and flexible tenures makes Lendingkart an easy and flexible option to borrow money for your businesses. If you are planning to start a new business in Ludhiana or are willing to expand the existing enterprise then Lendingkart in Ludhiana is there to provide financial help.

Business Loan in Ludhiana FAQs:

1. Can I apply for a start-up loan through Lendingkart in Ludhiana?

Yes. Lendingkart offers business loans to start-ups at a reasonable interest rate and flexible time duration. However, one needs to furnish documents to prove that the business is registered.

2. How much amount can I get through a business loan through Lendingkart in Ludhiana?

Lendingkart offers loan amounts ranging between Rs 50,000 to Rs. 2 crores.

3. What happens if I’m not able to repay the loan within the assigned time period?

Lendingkart provides you with extension of tenure option if one is not able to repay the loan within the stipulated time. The extension depends upon the guidelines set by Lendingkart at that time.

4. Can I repay the loan before the tenure is over?

Yes. One can repay the loan before time at no pre-closure charges.

5. What are the loan processing charges in Ludhiana?

A loan processing fee of 1 to 2 percent of the sanctioned amount is applicable in Ludhiana.

6. What is the time-duration for a start-up loan to be repaid?

The tenure for a start-up loan is up to 24 months.

7. I’m just 24 years old and need a loan for my start-up. Am I eligible to get a loan?

Yes. Anyone between 21 years to 65 years of age is eligible to avail a business loan provided other eligibility criteria are met.