Business Loan in Surat

Beyond its reputation as Gujarat’s economic capital, Surat also boasts a handful of prestigious industries that have been headquartered there for some time. In this city, there are multiple industries, including textile, diamond cutting, chemical processing, petrochemical processing, as well as chemical & petrochemical production.

A recent report by the official website of the Surat Municipal Corporation states that Surat exports close to 40% of the country’s diamonds, and produces 12% of all fabrics. Compared to the rest of the country, Surat has a compact environment and infrastructure along with business practices that enable the development of company growth. Moreover, the number of start-ups and business enterprises in Surat has mushroomed over the years, as requires business loans in this coastal Indian city. 

The most convenient way to raise the required funds and maintain the cash flow needed is to obtain a business loan. In response to an increasing number of delinquent loans being processed in the past few years, most financial institutions conduct thorough checks on the eligibility for loans before providing them.

Best business ideas in Surat

Manufacturing garments: Among the ten largest textile producers in India, Surat produces the most man-made fibers and the second most cotton textiles. The city, therefore, provides cheap raw materials to anyone looking to run a textile or garment business. This advantage can also be used to sell products outside your state.

Restaurant business: Fast-food restaurants can be highly profitable in Surat as it is a foody city. Food business profit margins are also quite high. Because most major food chains are not present in Surat, it is a great opportunity to start your own business here.

Embroidery and Printing Unit: Garments that are manufactured need to be printed or embroidered almost everywhere. Among the garment manufacturing units in Surat, which are currently overcrowded, this could prove very beneficial for the industry. Due to the plentiful labor and resources, a business expansion is simple.

Recognizing the benefits of loans for small businesses, Lendingkart offers several quick loans for small businesses in Surat. With this feature, Lendingkart aims to meet the financial requirements of entrepreneurs to start up and expand their businesses.

Business loans in Surat – Check your eligibility

An important part of overcoming the lack of funding is obtaining a business loan, but borrowers need to undergo a rigorous eligibility process. There is not much paperwork to complete or unnecessary documents to process that may delay loan approval. The following are some of the requirements they must fulfill to qualify for business loans in Surat. 

  1. It should be an established business with greater than six months of operation.
  2. During the 3 months preceding your loan application, you must have had a turnover of Rs. 90,000 or more than that.
  3. Blacklisted or excluded businesses should not be eligible for SBA funding.
  4. Neither your enterprise’s physical location nor its address should be included on the list of negative locations.
  5. The small business loan program does not apply to trusts, NGOs, and charitable institutions.
  6. In case you are unsure whether your business falls under one of the restricted categories or locations, you can contact us to find out.

Besides these, candidates must also submit these documents to get a business loan:

Identity Verification

PAN card

Proof of Residential Address (Anyone)

Voter’s ID, Ration Card, Passport, Aadhar Card, Driving License, Rent Agreement  

Banking Documents

Statements of your current account for the past six months

KYC of a business (Anyone)

Shops and Establishment Certificate, GST Registration Certificate, Business PAN Card

Here is a list of Business loans you can acquire in Surat:

Bank Overdraft / Credit Line: Online lenders, as well as banks, offer this facility. Essentially, it allows a businessman to draw money from their business account up to a sanctioned limit, regardless of the account balance. By depositing the excess into the account, plus interest, the excess amount is considered a business loan.

Equity Funding: An alternative to investing capital is for business owners to sell their shares in the company to raise funds. However, the equity funding option is less popular among SMEs in India, given the ownership dilution risk. If equity funding is used, an owner of the business retains the right to buy back shares if the investment objectives are achieved.

Short-term Loans: Loans with a shorter repayment period have smaller tickets. In general, short-term loans are for a period of 3 to 18 months and are given for working capital finance and small capital investments. Small and medium enterprises in India can obtain short-term business loans for up to 24 months, which makes the process more convenient.

Equipment Finance: Working capital and cash flow can be improved by financing equipment. Financing equipment involves taking out a loan or leasing hard assets. The lender would be entitled to take possession of the equipment if the borrower defaulted.

Loan on Accounts Receivables: They are extremely short-term credit facilities, provided as an alternative to accounts receivable. SMEs with commercial customers are the only ones who can obtain this kind of loan. As a general rule, the term ends with the invoice due date and includes interest and processing fees.

Factoring / Advances: Factoring companies provide a business with advance payments for its accounts receivable. In general, a percentage of the invoice value, usually 70% to 90%, is paid instead of the full amount. We reserve the remaining amount to cover unforeseen charges, damage, and errors in delivery. It must be understood that both the buyer and seller have to go through a factoring company to get a business loan.

Trade Creditor: Trade creditors are traders who have provided services or goods to your business and have yet to be paid. Business transactions between business partners that have a long working relationship are commonly conducted this way. It is also possible to consider a trade creditor’s amount due as a very short-term business loan.

What makes Surat the best city for obtaining business loans?

In today’s business environment, readjusting your business structure through commercial loans will allow you to stay competitive. Businesses in Surat seeking business loans can find many benefits from NBFCs such as Lendingkart with little effort.

Faster processing: You can explore new horizons and seize opportunities faster when your credit is processed faster. A business loan can help you expand marketing potential, speed up operations, and make your profits grow.

Preserving your ownership: You will not lose valuable assets or give up valuable company stock as part of this unsecured business loan. In this way, a business loan lets you keep ownership of your company while also allowing it to grow.

Streamlines your cash flow: Using a business loan provides you with both the capital and time you need to streamline your cash flow. You can make a profit on the investment and repaid it by making monthly installment payments with these loans.

Improve your credit score: Many NBFC loans increase the business credit score of your company as we report the loan to all three credit bureaus. A business loan is also ideal for companies that experienced a decline in credit scores due to unforeseeable market conditions.

Because of the competitive market scenario in Surat, obtaining a business loan can be challenging. This is where Lendingkart unsecured business loans can help simplify the lending process. Loans customized to the needs of small and medium-sized businesses in India are available through Lendingkart. We do not have the bureaucracy that is often associated with bank loans, and our process of applying for, approving, and disbursing loans is very straightforward. Taking a business loan has become a lot easier thanks to a fast and efficient digital interface designed so that humans can interact less and the process can be completed much faster.

Business Loan in Surat FAQs:

1. What is the lowest interest rate for business loans in Surat?

It is possible to find a business loan with the lowest interest rate in Surat. The lowest business loan interest rate in Surat is 14.00%.

2. What is the best way to get low-interest business loans in Surat?

Borrowers' eligibility and the lender's interest rate are the determining factors of the interest rate of business loans. When applying for a business loan, you need a credit score of at least 750 to obtain the best interest rate. As an alternative, you can borrow money against gold for your business.

3. Are there any ways for the NBFCs and banks to offer loans at lower rates in Surat?

Using online technology, we have reduced the amount of manual work our process would require if it were a manual process. Low interest rates result from this reduction because the borrower benefits from that.

4. In Surat, do business loans have an EMI option?

There are options for EMI facility that enables you to repay your business loan. EMI amounts are dependent on the amount of the loan, the interest rate, and the length of the loan.

5. During the application process for a Surat business loan, what documents are required?

Generally, banks or financial institutions ask for the following documents: address proof, PAN card, last six months' bank statements, PAN card, existing loan repayment history, service tax returns/VAT, MOA/partnership deed, etc.

6. In Surat, how much money can be borrowed for business purposes?

A business loan with no collateral can be obtained for INR 50,000 - INR 2 crore.

7. Is it possible for entrepreneurs in Surat to obtain a business loan?

We can offer businesses a wide range of business loans, such as start-up loans, working capital loans, loans secured by property for SMEs, invoice financing, equipment financing, business loans for women, merchant cash advances, and so on.

8. When does a business loan take to be approved in Surat?

It usually takes 3 to 5 days for Surat business loans to be fully disbursed to your account.

9. Is there any benefit offered by NBFCs and banks to female entrepreneurs in Surat?

It's an automated process, so there are no biases or prejudices influencing business loans. All banks and NBFCs provide fair conditions and terms for loans.

10. How does foreclosure work?

During times of prosperity and upswing of sales, full repayments can be made at once. There will be no multiple EMIs to pay each month. The term "loan foreclosure" or "prepayment" is used to describe this. However, there are a couple of extra fees associated with loan foreclosure.