Businesses in Mumbai might require loans to finance company decisions such as to regulate the cash flow, expand the business, increase sales, or to build inventory.
Capital loans can be availed from financial institutions in fast and efficient ways to supplement short-term business growth objectives.
Benefits of a Business Loan
- Most business loans – up to a certain amount – can be availed without personal or business asset collateral. This alleviates the burden or the risk of the possibility of losing assets.
- The fast and proficient loan apportioning by banks or other lenders makes it more convenient for business owners to apply for the loan. Ascertaining the credit-worthiness and disbursing the amount can all be done within 72 business hours.
- The paperwork burden is minimal as most of the processes are carried out online on the LendingKart website. The loans can be attained
Eligibility Criteria for a Business Loan
- The business should be in operation for more than six
- A turnover of more than Rs. Ninety thousand in the past three months should be evident before applying for the loan.
- The business should not be blacklisted.
- The location of the business should not be blacklisted and should not pose a security risk in the event of recovery. In Mumbai, these areas include Dharavi where recovery agents are not permitted.
- NGOs and charitable institutions in Mumbai are not eligible for a business loan.
Types of Business Loan available to Enterprise Owners in Mumbai:
- Short term loan
These loans do not require the submission of collateral security. It may be used for short-term expansion, paying off employees or to purchase
- Equity funding
The solicitations in the company are used as security to procure the loan amount. It is accompanied by the risk of dilution of ownership.
- Credit line
A revolving credit facility allows for business people to withdraw money up to a certain amount from their business account. Any amount that exceeds the amount that they have already as considered as the business loan amount.
- Asset finance
Such loans are provided to the borrower for the purchase of machinery or other equipment. The borrower pays a regular amount to the creditor for the use of the asset.
- Loan on accounts receivable
The loan is sanctioned to the business for the accounts receivable. A high credit rating is required to qualify for the loan.
How to Apply for a Business Loan
- Submit an application online with your personal, financial and business details and await a business loan offers from us.
- Upload the required documents:
Business proof documents ID proof Financial documents of the company Partnership deed in case of a partnership business PAN card Audited reports Establishment certificate Aadhaar card income tax returns, Incorporation certificate Voter ID balance sheets Business registration proof Passport profit and loss reports Company PAN card VAT returns for the past two financial years Bank statements – For the past six months, the statements should show 75 % of banking turnover.
- Subject to meeting all the criteria for the business loan, the sanctioned amount will be disbursed in 3 working days.