Loans for Startup Business in India

 

Almost every startup faces challenge of meeting operating cost and perfectly balancing them to further grow and expand. It is like you are hungry for funds but as you are new, so financial institutes are not willing to help you and take risk. In this case, under many schemes of Government of India, there are many banks that are offering Business Loans for Startups. Just like other banking loans, startup loans also allow a company to borrow from conventional lenders and run their operations.

 

Companies must keep themselves aware of the fact that perfect documentation is a key to access many funding options of the market. Startups must maintain proper documents, to increase their score and thereby chances of getting short term loans and long term loans. Here are the points that we suggest to all the startup entrepreneurs to focus on:

 

·        Make a crisp and detailed plan for which you need funding.

·        Cite down all the objectives that indicate the business growth and potential return scope.

·        Have clear estimation of the funds

 

When it comes to availing MSME Business Loans in India, there are two types of loans that are extensively avails, they are:

 

Line of Credit: This one is more like a credit card, which instead of getting applied to individual personal’s credit, applies for the business credit. The main advantage of this loan is that borrowers need not pay interest of the taken loan amount for the first nine to 15 months and hence they can manage handling preliminary expenses of the newly started business.

 

Equipment Financing: It is a collateral loan that enables bank to charge a lower interest but with a higher risk. By taking this loan, a borrower needs to repay the amount that he has invested on purchasing the equipment by earning revenues from their business. The main advantage of this one is that tax benefit can be claimed by the borrower for the depreciation of the equipment.

 

Why You Should Take Startup Loan for your newly started small business?

 

·        Minimal documentation time is required

·        Entrepreneurs need to show evidence of their personal credit history

·        Ease of repayment and flexible tenure

·        Generally, any kind of security or collateral are not asked by banks for business startup loans

·        Highly fair interest rates but it depends on the credit history of an individual

·        Banks cannot claim on the profits earned by the business

·        Tax benefits can be claimed by borrowers on the interest paid amount

·        Supports in making credit score of the business

 

To know best deals on Startup Loans, you can contact TI Lending, which is an initiative of India’s leading B2B marketplace, to help businesses run and grow themselves. With association with its partner, this company supports in providing Quick Business Loans in India at low interest rates.