The purpose for taking a business loan is evident – you want to grow your business, sustain its growth or need funds to start a new sub-project. Whatever the reasons may be, securing a business loan in Delhi is straightforward, should you know the right approach to pursue the application process.
This guide intends to educate you on obtaining a business loan in Delhi with all the necessary details. Read on to know all the details.
Know the Loan Amount and Tenure
Knowing the loan amount range in Delhi is essential before applying for a business loan in Delhi. In Delhi, business loans usually range from Rs. 3 lakhs to Rs. 40 lakhs. It would help if you also considered the loan term, which can be anywhere from 12 months to 5 years, with flexible repayments.
Figure out how much money you need and how much you can afford to pay back per month as EMIs to get the best loan amount for your business.
Check Interest Rates
Delhi banks charge varying business loan interest rates, ranging from 14% to up to 30%. Compare interest rates from multiple lenders for the best deal. Even a modest interest rate adjustment may mean you might have to pay lakhs as interest if the principal amount and tenure are significantly higher.
It is worthwhile to take time to research and shortlist lenders that offer the best interest rates at no hidden costs. Also, to get a loan at a lower interest rate, you need a good credit score, a solid company plan, and transparent financials.
Make sure you have these ready before you apply.
Verify Eligibility
How easily you will get the loan depends on a lot of factors, like your age, business type and the foreigner loan Singapore purpose.
To secure a business loan, you must fall under the right age bracket and be self-employed. These parameters ensure that the loan approval process will be seamless and successful.
Gather Required Documents
For documents required for a business loan, you must prove who you are, where you live, and how your business works when applying for a business loan. You can do it by presenting the documents that prove your and the business’s credibility:
- Identity Card: Aadhar Card, PAN Card, Passport, Voter ID, or Driver’s License. KYC (Know Your Customer) processes need these papers to make sure you are who you say you are.
- Proof of Address: You can show both your home and office addresses with things like electricity bills, rental agreements, or property records.
- Proof of income: Bank statements, tax returns, and profit and loss accounts are all types of documents that will work.
Moreover, you must show proof of business registration, such as a GST registration and any other paperwork related to the company.
Understand Additional Costs
Business loans come with fees beyond the interest rate. These include documentation charges, processing fees, pre-closure charges and late payment charges.
It’s important to inquire about such charges in detail with the licensed money lender Singapore you finalize and take a decision accordingly. For example, most lenders charge loan processing fees in the range of 2-5%. If your lender charges more, consider looking for other options.
To enhance your chances of securing a business loan in Delhi, it’s essential to grasp the loan amount, tenure, and interest rates while also ensuring eligibility and gathering documents. A comprehensive application with all required paperwork and a good grasp of implications can greatly boost your chances of getting a payday loan Singapore that aligns with your business requirements.
Researching and comparing lenders will help you secure favorable terms, ultimately contributing to the growth and prosperity of your business.
