Planning to start a new business this season. But short on funds. Well don’t worry as now you can get business loans in ahmedabad to start your business or expand it further.
But there are few things that you should know about before you apply for a business loan and this is what we are going to tell you below.
Business loans are a type of debt on the company that is offered by the Banks and non-banking financial companies (NBFCs) in India.
The main objective behind offering a business loan in Ahmedabad is to help the companies meet their immediate needs for expanding the company or even start a new company. These types of loans are available for sole proprietors, privately held companies, partnership firms, self-employed persons, and shopkeepers.
This might have helped you understand something about the same. More details are shared below. But if you want to go ahead and get yourself a business loan in ahmedabad. Then you can get in touch with Zatpat Loans and our team will help you with everything.
Different Types Of Business Loans
There are different kinds of business loans available to choose from and we listed all them down below:
1) Term Loan
A term loan can be both a secured or unsecured loan. The term period can range from 15 to 20 years for the secured loan and 1 to 5 years for unsecured loans.
The credit amount is decided through the credit history of the company and the amount is directly transferred in one lump sum.
2) Start-up Loan
These are new age loans that have been created specially to help the start-up companies in growing their business.
Under these type of loans, lenders and banks also take on the applicant’s personal credit history to determine the loan amount. As these are new age companies with less experience.
Many banks and lenders also take on the turnover data and other factors into consideration when determining the loan amount, term, and interest rate.
3) Working Capital Loan
Generally, companies take these types of business loans in ahmedabad. Whenever they plan to expand their business and cover their day to day expenses for large businesses and for smaller businesses they take it to cover their shortfall in cash to run a business.
This helps the business to run even during the off-season and generate cash. To give you an example these types of loans are taken by the service providers, producers, distributors, merchants, and traders involved in exports and imports.
These are some of the most used business loan in ahmedabad.
Benefits Of Business loan
These types of loans have low interest rates as they are meant to meet the needs of a businessman to help him run his business or company successfully.
But the amount of interest rate might differ from business to business. As a lot of factors are taken into consideration while offering the business loan.
2) Nominal Processing Fees
The processing fees is quite nominal if we compare it to personal loan or home loans. Due to the different kinds of scheme offered by the banks and government.
The main reason behind this is to help the business get maximum amount to invest in their business.
3) No Collateral Required
One of the major reasons as to why a lot of businessmen go towards getting a business loan in ahmedabad is collateral. As you don’t have to keep anything as a collateral if compared with other types of loans. So you still stay the owner and have the money to power your business and take it to new heights.
4) Quick, Hassle-Free Disbursal
The amount of documents required to get yourself a business loan are minimal. As nowadays there is a streamlined process for the same.
5) Repayment Flexibility
Whenever you apply for business loans in ahmedabad you have the power to choose your repayment period as per your need. As these types of loans are to help you start and expand your business.
You choose the tenure which you find flexible and the amount of EMI for the same.
6) Meeting Working Capital Requirements
Business loan helps you in meeting your day to day needs or take your business to new heights. Which could not have been possible if you would have to invest your own money in the business.
Frequently Asked Questions
1) What are business loans?
Business loans are a type of debt on the company to help them start, expand or meet their day to day needs.
2) What is the duration of business loans in Ahmedabad?
For secured loans it is between 15 to 20 years and unsecured loans have a duration of 1 to 5 years.
3) What is the interest rate on business loans?
The interest rate can be anything from 4% to 7%. As it all depends on the type of business and its turnover.