The SME and MSMEs have strengthened the overall economic situation in India. The popularity of startups and other businesses have created thousands of job opportunities. The revenue received by the government via these small or medium enterprises is now valued in billions. These are just a few reasons why the government and other funding agencies have taken up initiatives to ease the process of providing finances to various SMEs. It has been noticed that many SMEs in the past were forced to shut down or cease operations due to the lack of business funding.
But the situation is quite different now if you are a business owner who is aiming for expansion then availing a business loan is no more a hassle. You may now apply for a business loan even at the convenience of your home through the internet.
Here are a few tips to get quick SME business loans with ease in India.
- Ask your bank: Today, the majority of the population holds a bank account with either a private or centralized bank. The financial institution will be able to help you figure out your personal or your SME’s financial capabilities. They will also help you customize the loan amount and tenure.
- Contact Financing Corporations: If your bank doesn’t offer you sufficient loan amount or if the guidelines are stringent then there are many financial companies in India which offer SME business loans. These SME business loans are tailor-made to meet the demands of a small or medium size enterprise.
- Search online: The Internet is a host to a number of Fintech and SME fundingcompanies who are now willing to grant loans to SMEs. You may end up finding your lender right from the comfort of your own home by applying for an online business loan.
Once you finalize your lender. It is then important to ensure that your documentation and financial capability meets the eligibility standards as per the lending policy offered.
1. Evaluate your financial strength and assets before applying for a loan: Accessing your financial strength in accordance with cash or property will help you determine if whether you would like to apply for a secured or unsecured loan. If your company has been operational for many years and your company boasts a lot of properties of its own, then getting a secured business loan wouldn’t be very difficult. On the other hand, if your SME has recently entered the market and you lack an asset to submit as collateral then you may choose to apply for an unsecured loan.
2. Check your Credit score: If you or your SME regularly pay off debts, it will reflect in both your bank statements and CIBIL score, a high CIBIL score will ensure that you have higher chances of your loan getting approved as well. Any discrepancy in your bank statements should be rectified before applying for a loan.
3. Submit appropriate documentation: In many cases, people miss out on the opportunity of getting their loans approved because they submitted inappropriate documents. Documentation is an important part of both unsecured and secure loan processes. Make sure all your documents are updated, renewed (if expired) and relevant.
Execute these simple tips to avail of an SME business loan easily.
Getting an SME business loan is an effortless procedure. They are instant business loans that can be disbursed within a few days. Loans can be easily applied by visiting the nearest branch of your bank or by approaching a non-banking financial corporation. Owners can even consider online solutions instead of offline lenders where the chances for the application to be processed are faster.
For traditional loan approval, evaluate the value of assets your company owns as well the financial strength that will improve the chances. In case of shortage or absence of collateral, you can decide to opt for an unsecured business loan where the prime focus is on the CIBIL score and credit history.