Business Loan In Thiruvallur

Thiruvallur, also known as the land of lakes, is a city near Chennai in the Indian state of Tamil Nadu. Being just 44 km. from the state capital, the city is fast developing as a strategic industrial and commercial centre in South India.

There are many religious monuments in Thiruvallur as well, and the city lies on the Chennai-Tirupati highway.

Thiruvallur has seen rapid infrastructural development in recent years and has an inspired culture of multiple start-up ventures.

If you are looking for business loans in Thiruvallur due to expansion of business or procurement of plant & machinery, read on to know everything about business loans and how to avail them.

Every entrepreneur dreams of growth, to scale up his business one day and reach newer markets and consumers. But growth or expansion requires capital, which may not be immediately available to the business.

Business loans are loans offered by banks and NBFCs to eligible businesses to meet their expansion goals or increase manufacturing efficiency.

Business loans are provided by banks and Non-Banking Financial Institutions (NBFCs) online as well as offline through a branch office.

Features and benefits of business loans

  1. Loan up to Rs. 2 crore  – Business loans are available to eligible businesses with a good credit history and performance for an amount that can be up to Rs. 2 crores.
  2. Flexible repayment options – Banks and NBFCs allow flexibility in terms of repayment options. The repayment tenure of business loans is 12 to 60 months. The borrower can also choose between paying back the loan either in instalments or as a lump sum.
  3. No collateral required – Many lenders provide collateral-free or unsecured business loans to enterprises operating in profit with a good CIBIL score. Unsecured business loans do not require any collateral or guarantor.
  4. Quick approval – Business loans are quickly approved by lenders if the applicant fulfils their criteria.
  5. Minimum Documentation – Business loans often require minimum documentation. The whole process is very hassle-free and can easily be done online at the comfort of your home.
  6. Helps business achieve its goals – Businesses that are looking to scale up or enhance their production capability can benefit through business loans, which provides the capital to expand, invest or carry out normal business operations.

Business loan Eligibility

Business loans are offered to any individual running a legitimate business with a profitable turnover. 

Different lenders will have different eligibility criteria for evaluating a business. The applicant has to submit some documents which prove that his/her business is performing well and running in profits. Based on these documents, the lender decides the loan amount, tenure and interest rate. 

These are some of the general criteria that lenders take into account:

  1. Eligible entitiesBusiness loans can be obtained by self-employed individuals, sole proprietors, limited liability partnerships, partnership firms, public and private limited companies, MSMEs, NGPs and Cooperative societies.
  2. Applicant age – The age of the applicant should be minimum of 21 years during application and not more than 65 years during the maturity of the loan.
  3. Credit history – The applicant should have a good credit history and a CIBIL score of over 650.
  4. Residential – The applicant should be an Indian citizen.
  5. Business vintage and performance – The business should be in running for the past 2 years continuously with profits and should not be in any kind of debt.
  6. Annual turnover – The annual turnover of the business will be decided by the lender.

Interest Rate

14.99% onwards

Loan amount

    Rs. 1 crore

Repayment tenure

12 months to 60 months

Collateral

Not required (except loans on machinery)

Age

Minimum: 21 years, Max: 65 years

Documents required to apply for a business loan

Following are the documents required to apply for a business loan:

ID Proof

Voter ID, Aadhar card, Driving Licence, Passport

Address Proof

Voter ID, Electricity and other utility Bills

Bank Statement

For the previous 6 months

Proof of Business

Business Registration, Licences and Permits

Financial Documentations

Business Income Tax Certificate, P/L Statement, Balance Sheet

Why take business loans?

Business loans help achieve organizational targets and growth. Whether it is for scaling up productions or venturing into new markets, business loans offer the capital required to do so.

Here are some reasons why business loans are beneficial for businesses: 

  1. Business expansionEach and every entrepreneur wishes to expand their business someday, either into new products or new markets. Business loans provide the base that is required by enterprises to enhance their presence or scale up in size.
  2. Increase working capital – Many times, businesses fall short of working capital due to a sudden requirement. A business loan is a viable option to source funds for the smooth functioning of your business.
  3. Purchasing equipment – Equipment like plants and machinery have a life, and so it is advised to upgrade these manufacturing machines after every decade or so in order to prevent lag in production or pay a high price for it. Businesses can help enterprises to invest in plants and machinery to upgrade their production systems and improve efficiency.
  4. Inventory purchase – Sudden market fluctuations may see prices of raw materials rise, which can be inconvenient for businesses that require urgent materials for production to meet the increased demand. Business loans are a viable option in such circumstances.
  5. Improving credit history – Business loans also improve the credit history of the borrower if they make regular payments on time.

Business loans in Thiruvallur

Many start-ups and established businesses call Thriuvallur home. Business loans in Thiruvallur are disbursed by banks and NBFCs. 

Banks generally offer business loans with a lower rate of interest than NBFCs, but, their eligibility criteria are very strict. NBFCs on the other hand are much more relaxed with their eligibility criteria for business loans, but usually charge a higher rate of interest on the loan. 

You may approach any institution as per your choice, but it is advisable to understand the financial needs of your business, compare the best business loans and then select the one which will help you achieve your goal.

These are some loans offered by lenders to businesses in Thiruvallur:

  1. Term loan
  2. MSME Loan
  3. Mudra Loan
  4. Working Capital Loan
  5. Letter of credit
  6. Invoice funding
  7. Microlending
  8. Merchant cash advance
  9. Small Business Finance

Steps to apply for a business loan

Business loans in Thiruvallur FAQs:

1. How to get a business loan with bad credit?

To get a business loan, the applicant and the business should have a credit score of at least 650. If the borrower’s CIBIL score is not near the threshold, the loan application may be rejected. So it is best to start improving the personal and business CIBIL scores to qualify for the loan. This can be achieved by timely payments of any dues or credit taken from any lender. If the need for capital is urgent, you can take a loan from an NBFC, who grant loans with relaxed criteria to businesses.

2. Can I get a loan for my start-up business?

Banks and NBFCs provide business loans to enterprises with a clean credit profile and the amount of loan asked. One can apply online by submitting documents on the lender's website or by visiting the nearest branch. If the applicant has a bad credit score below the threshold required, they may approach an NBFC, who have more lenient rules regarding business loans.

3. Are unsecured loans safe for small businesses?

Unsecured business loans do not require any security or guarantor from the borrower. This is why they are suited for small businesses, who often do not have any considerable assets to mortgage. Even in case of failure to pay back the loan, the lender cannot seize the personal property or assets of the business.

4. Who can apply for a business loan?

Parameters for granting business loans includes the following: 1. Type of business, 2. Business turnover, 3. Cash Flow of the business, 4. Profit made by the business, 5. Credit record of the business

5. Who is eligible for a business loan?

Business loans can be obtained by self-employed individuals, sole proprietors, limited liability partnerships, partnership firms, public and private limited companies, MSMEs, NGOs and Co-operative societies.

6. What is the eligibility criteria for business loans?

Following is the eligibility criteria for availing a business loan: 1. Applicants should be at least 21 years of age during loan application and not more than 65 years of age during maturity, 2. Applicants should be an Indian citizen. 3. Business should be in profit for the last 2 years. 4. Business should have a minimal annual income of Rs. 1.5 lakh per annum.

7. What are the kinds of business loans in India?

Following are the types of business loans in India: 1. Agriculture loan, 2. Small business loan, 3. Credit Guarantee Scheme for Start-ups (CGSS), 4. PM Street Vendor's AtmaNirbhar Nidhi, 5. Start-up business loans, 6. Dairy Farm Business loans, 7. Working capital loan, 8. Business loans for women

8. What is the lowest rate of interest for a business loan in Thriuvallur?

The lowest interest rate for a business loan in Thiruvallur is 13.65%.

9. Is How long does it take for the business loan amount to be credited in bank account?

After approval of the loan, the amount will be deposited within 10-15 working days into the account of the borrower.