Applications for business loans in Kolkata from NBFCs and internet lenders are simple to fill out. This makes it easy for business owners to receive the fund they need when they need them. A business loan application and approval processes are more streamlined than other loan types. The lower document requirements make them an attractive option for businesses needing quick access to additional capital.
How To Apply for a Business Loans in Kolkata?
You can apply for small business loans from companies both online and in person. Conventional loan providers, including banks, typically provide a paper application for loans. Borrowers must complete a loan application in full while physically present at their office. Lenders also require borrowers to provide physical copies of necessary paperwork.
Online lenders and non-bank financial companies both provide online loan applications. In this scenario, loan applications can be filled out conveniently and quickly online. The following step is for them to electronically submit the necessary loan paperwork to the lender. You only need to travel to the bank’s branch if you complete the application online.
Eligibility Criteria For Business Loans In Kolkata
You must be self-employed between the ages of 25 and 65 to be considered for this position. You should show at least one year’s worth of tax returns, ideally the one prior. A business loan application can only be made if the company has been operating for at least three years.
Documents Required For Business Loans In Kolkata
Now that you know a company loan, it’s time to learn how to get one. We will consider several criteria when deciding whether to grant your business loan application. Your credit score, financial history, employment record, and business income will all be factored in. To provide an objective assessment of these elements, we need the following paperwork:
- Receipts and Deposit Slips (Preceding 12 months)
- Evidence of filing for a business license
- A Photocopy of Your Personal or Business PAN Card
- A copy of the owner’s Aadhaar card
- A Duplicate of the Partnership Agreement (in the case of a partnership firm)
- Additional paperwork, such as a certificate of incorporation or registration
Once submitted, your application, the business loan interest rate, and the amount you can borrow will be finalized.
Benefits Of Business Loans
Fast Loan process
The time it takes to apply for a loan is usually quite considerable, as the institution must thoroughly examine the applicant’s paperwork and credit worthiness. This loan is significantly faster to obtain. This is because writing up paperwork takes up far less time. This results in a rapid transfer of funds.
No Security Needed
When deciding how much of an unsecured loan to provide a borrower, banks look at factors including their credit history and how much money they bring in each month. The borrower is not required to provide collateral information.
No Risk To Business Assets
Borrowers are not required to disclose the specifics of their business’s assets, so properties, vehicles, and stock are safe from harm.
Alternatives Of Business Loans
Invoice Discounting
Bill discounting, or Invoice discounting, allows businesses to borrow short-term capital from banks or financial institutions in exchange for a reduction on their outstanding invoices. Invoice discounting is a method for firms to address their immediate cash flow demands. If you need a loan for your business but want to use something other than an overdraft, consider Invoice Discounting as an option.
Working Capital Loan
A working capital loan is an establishment of finance frequently needed by new and growing businesses to handle the costs of running the company daily and keeping the company’s cash flow stable. Loans for working capital are intended for meeting immediate needs rather than investing or purchasing long-term assets.
Banking Surrogate
With Financial Surrogate, a customer’s banking records are used to determine their eligibility. The target market for this service consists of self-employed individuals whose monthly income and earnings fluctuate. This product does not prioritize individuals with steady incomes, such as the salaried class.
Conclusion
Even minor actions might help you get closer to your company goals. So, make sure your company has access to the funds it needs. Numerous collateral-free business loans are available to help you take your company to greater and greater heights of success. There are a variety of alternatives available in Kolkata that may be modified to meet the needs of your business.
