It has all the potential to turn into a booming economy and there are many small and first time businessmen who are looking forward to launching their business here. Moreover, since business loans are unsecured loans and they do not need any guarantor or collateral, many businessmen can think of fulfilling their dreams. Thanks to certain schemes, there are special arrangements in most banks and NBFCs for small business loan in Tiruchi. However, before going ahead with the loan application it is advisable to check whether one is eligible for the loan or not. Here are certain points to consider while applying for a business loan in Tiruchi:
- To avail a loan for business, the company has to be Limited or a Private Limited Company
- In case a businessman wants to avail a loan of up to Rs 15 lakhs then the net income of the company should be more than Rs 1 lakh 50 thousand per annum and to avail a loan of Rs 15 lakhs or more, the net income should be Rs 3 lakhs at least.
- The firm must either be a partnership or a proprietorship firm and suitable documents have to be provided
- If the business is owned by an individual who possesses certain diploma or degree in any discipline or art, science or commerce as deemed fit by the financial institution, then he can be easily considered for the loan. CAs, doctors, surgeons, engineers, traders, craftsmen, management consultants can all apply for the loan.
- The age of the person applying for the business loan should be between 21 to 65 years and in some cases, it is between 25 and 65 years.
- It is important to submit the IT returns of the company with the application that the business has been making a profit for at least the last two years. In case one is a first time businessman, the proper documents have to be produced to show how the business has been planned for launch.
Apart from these factors, one should also try to avoid scenarios which might negatively affect the applicant’s eligibility.
- To become eligible for a business loan, the lender must always be approached with a good credit score. A poor credit score will always be a hindrance because since business loans are unsecured loans and your credit score will be a major parameter that will convince the lender about your financial history. One should avoid default payments or outstanding dues and avoid major fluctuations in one’s financial history. The alternative is to pay a hefty business loan interest rate and a small business cannot really afford that.
- While it is said that nothing really comes in the way of doing business, as a matter of fact, it does. If there are any charges against the businessman or his business, if any of them have ever been connected with any kind of fraudulent activity, or if there are written charges filed against them for criminal activity, the bank will not approve even a small business loan.
- Although modern quick business loan procedures have been exceedingly simplified and very less paperwork is involved, there are still documents required for verification before the loan is finally approved. Along with all the educational and professional certificates, the businessman has to submit his KYC documents, proof of business like address proof of the office premises, TAN and sales tax documents and other related documents. For first time business owners, one has to show receipts of all the down payments that they have made in the lead up to the launch of the business.
Bajaj Finserv has excellent loan options for small and medium businesses and if you are living in Tiruchi, feel free to apply for them after you have checked your eligibility.
We give you the best daily information on news, technology, lifestyle, career, health tips, agriculture, business and entertainment. If you can write very well and want to make a living writing online, click HERE!