Term loan – the financial pillar of most startups and SMEs which helps the businesses see the desired turnovers. Now, if you are a budding entrepreneur and looking to restock inventory, pay off your employees or purchase equipment, then you must have come across this term.
However, go through the following points to understand the true benefits of term loans:
- Comparatively less documentation.
- Flexible repayment in accordance with cash flow.
- High financing amounts.
- Customization according to business requirements.
- Availability of numerous lenders.
- Competitive interest rates.
Owing to these benefits, more and more businesses opt for term loans every day in India.
What can you do with term loans?
Term loans has various applications, some of which include –
- Purchase new plant and machinery.
- Rent or lease a new office.
- Revamp your office interiors.
- Recruit more workforce.
- Restock your inventory.
- Diversify your business.
All these things mentioned above can aid in your business expansion and eventually help you fetch more customers.
So, where can you get one?
Presently you can get such a business term loans from banks or NBFCs. While banks may impose strict rules and regulations on you, NBFCs, on the other hand, are a bit lenient.
Hence, NBFCs offer the best solution for getting term loans. However, owing to the abundant availability of them, you might get confused as to which to pick.
But wait! Here’s a quick solution!
Have a read through this comprehensive guide that can help you pick a lender more efficiently.
- Collateral-free loans
When hunting for a term loan, make sure that the lender offers a collateral-free loan. Such a loan would enable you to receive funds without mortgaging or hypothecating an asset.
You don’t need to put a personal or business asset as a pledge to your lender. Thus, you will be able to utilise all your possessions without risking your valuable asset.
- Company goodwill and credibility
The company or NBFC that you go for should have goodwill and credibility in the Indian market. Moreover, ensure the financial institution has offices scattered all across your city for easy availability when required.
Note: Check for online reviews and consult with existing customers of the company to receive hassle free loans.
- Higher financing options
Before you apply for a business term loan, check the lenders’ maximum financing amount. A foremost NBFC can provide you with up to Rs.30 Lakh in financing.
With such an amount, you can utilise it any way you want to in the betterment of your business.
- Pre-approved loans
With pre-approved offers, existing customers of an NBFC may enjoy previouslt approved loan offer. Financial bodies also offer several other features like low interest rates, flexi loan ficility, top-up loans, etc.
- Felix loan facility
With flexi loan facility, you pay only the interest.
This feature enables you to pay only the interest as EMI; you can pay the principal at the time of closure of your term loan. Thus, you can save more and invest even more in your business expansion plans.
- Minimal documentation
The one company that requires minimal documentation would aid in easy and quick loan approval. A leading financial institution would need you to present only basic documents for your loan.
With less red tape, your loan would be sanctioned and disbursed rapidly and in your loan account in no time.
Following are the aspects mentioned above that can help you to find the best business loan. Bajaj Finserv is one such provider of term loans. They abide by all of the objectives that you got to learn here.