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Business Loan in Chennai

A business loan is required by every business person for different needs and situations that take place in the life of the business. For certain expenses, an individual can use his/her own resources but only till a certain time period. Post that, the business person either has to use the reserve working capital or take a loan. Using the reserve capital is not wise as you need that money for emergencies and immediate payments. Taking a business loan can help the business person in executing all the tasks and ensure that the business runs smoothly. In Chennai, Banks and NBFCs provide business loans to existing businesses for a variety of reasons. These reasons can be anything dealing with the upkeep of the business and to ensure that the business grows. Once the business person is eligible as per the lender, he/she can avail a business loan in Chennai.

Why should I take a Business Loan in Chennai?

Chennai is one of the largest city economies wise in India. It is nicknamed as “The Detroit of India” as it houses more than one third of the country’s automobile industry. Hence business establishments are in plenty in Chennai. These businesses use their funds and also business loans to ensure that the business runs without any hiccups and that it continues to grow. There are different reasons why a business person would need a loan. They are as follows;

Business loan for working capital

A business can utilize their funds and the reserve working capital for the running of the business. This is only till the time that the working capital does not replenish. If it is less and is almost on the verge of being nil, it is bad news for a business. Having sufficient working capital is very important. Without it the business cannot run properly. The payments and salaries cannot be given on time. Hence an individual can take a business loan in Chennai to ensure that the working capital is sufficient.

Business loan for business expansion

A business has some goals set which they want to achieve. There are short term and long term goals. Out of these, one long term goal happens to be the expanding of the business. A business will want to expand from local to national when they want to increase their customer base and profits. For this, one can take a business loan in Chennai to expand their business.

Business loan for buying machinery or equipment

Every business runs using their machines effectively and ensuring that the employees work with utmost efficiency. For this, it is very important that the machinery and equipments are up to date with the market trends. The machines and equipments keep upgrading and so does the efficiency and production capability. The new machines can help a business get more production and more profit. But a business cannot keep upgrading their machinery every few months because the value of these machines and equipments cost a lot. Hence a business person can take a business loan in Chennai and upgrade their old machinery with the new one.

Business loan for developing infrastructure

How a customer views your business space/shop is very important. An establishment with good infrastructure will attract the customers toward your shop. This would mean that you would gain new customers who will buy products from your business just because your shop looks well furnished and with good infrastructure. The cost for setting up a good place or revamping your old space is high and hence a business person can take a business loan in Chennai to develop the infrastructure.

What are the Features and Benefits of a Business Loan?

  • One can avail this loan to tackle with their immediate financial obligations like daily capital needs.
  • One can avail a business loan in Pune ranging anywhere between Rs.50,000 to Rs. 75 lakh
  • One does not have to keep anything as collateral or need a guarantee for a business loan in Pune up to Rs. 75 lakhs.
  • Business loan offers you lower interest rate compared to personal loans.
  • With minimal paperwork and flexible repayment options, more and more business owners are leaning on business loans to fund their business needs.
  • Banks/NBFC’s offer customized repayment schemes for business loans in Chennai. You can repay the business loan Daily, Weekly or fortnightly.
  • Business loans can also help in tax benefits for the company.
  • You don’t need to show Income Tax Return for loan up to Rs. 10 lakh.

What are the different types of Business Loans available in Chennai?

Business Loans in Chennai are given to business persons with an existing venture. There is a variety of loans given by the Banks and NBFCs. We have divided these loan types as;

Micro business loans

Micro business loans are business loans given to small businesses that operate within the city. These loans are given when these businesses have short term payments and cash crunch issues. Banks and NBFCs give a customized solution to these business persons in the form of business loans which they can utilize and run their business with ease.

Business loans for self employed professionals:

One type of business loans given by the different lenders in the market is for self employed professionals. These loans are unsecured and hence the rate of interest is high. The loan amount can be given around 25,000 to 75,00,000 rupees.

Business loan to finance a project:

Banks and NBFCs encourage business persons with an existing business to start a new project. The business person has to prepare a project report which stated the intentions and needs of the business. The Banks and NBFCs will analyze the report and after careful scrutiny will derive a loan amount that can be given to fund the project. This is how you can get a business loan in Chennai to fund a new project.

Business loan to finance equipment:

A business needs to compete with the different businesses that are in the market. One way of doing that is by being more productive. Hence buying new machinery and equipments, the speed, efficiency and productivity can be increased. But these machines are very costly and hence a business person can take a business loan in Chennai to finance new equipments.

Business loan for working capital:

Every business needs to maintain a cash level for the business to run smoothly and also to ensure that all short payments and obligations can be handled. If this cash level goes down, then it is a cause of worry for the business. Hence a business person can take a business loan in Chennai to improve their depleted working capital and run the business with full efficiency.

What are the Eligibility Criteria to get a Business Loan in Chennai?

A business loan can be availed by any business person who can fulfill the eligibility criteria set by the Bank/NBFC. The criteria are different as per each lender. Hence the list will vary with each lender in the market. Although there are certain points that exist in each lender’s criteria. We have made such a generic list and have mentioned it below;

  • Banks and NBFC’s divide applicants in two categories purely based on their profession. The eligibility criteria and list of documents change as according to these two categories.
  • Self Employed Non Professionals (SENP): Trader, commission agent, contractor etc.
  • Self Employed Professionals (SEP): Doctors, CA, CS, architects, engineer etc.
  • If you are applying as an enterprise, you can avail a business loan in Chennai by applying under following entities:
  • 1. Limited Liability Partnerships
  • 2. Limited Companies-Listed
  • 3. Partnerships/Proprietorship
  • 4. Private Limited Companies
  • Other important requirements to avail a Business Loan in Chennai:
  • 1. The age of the applicant should be minimum 25 year and maximum 65 years.
  • 2. The borrowers should have a strong credit history. They should have a credit report ready for bank reviewing.
  • 3. You should have minimum 3 years of experience in current business and 5 years of experience in overall business industry.
  • 4. The minimum turnover of your business should be Rs. 60 lakh. The turnover should be in positive track.
  • 5. Your business must be making profit for last 2 years.
  • 6. 6. You should have paid your business’s Income Tax Returns for last 2 years.

What are the Documents Required to avail a Business Loan in Chennai?

  • 1.Passport-size photographs.
  • 2.Neatly signed and filled loan against property application form.
  • 3.Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • 4.Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card.
  • 5.Copy of details of all existing loans.
  • 6.PAN Card – For Company /Firm/ individual.
  • 7. Business proof (registration of business)
  • 8. Bank statements of last 6 months from application date.
  • 9. Copy of challans proving that Advance Income Tax has been paid.
  • 10. Copy of ITR/Assessment Orders of 3 years
  • 11. Proof of continuation which will include ITR, trade license, establishment and sales tax certificate.
  • 12. Balance sheet and Profit & Loss details of business from last 2 years. These details should be certified by CA.

Why Choose Ruloans To Apply For Business Loan in Chennai?

Ruloans is a one stop shop for all of your financial needs. We help our customers borrow right. Our motto is to provide the best services which are “much more than money”. Being in the loan industry for a long time has given us a lot of experience in this field. Our staff is very knowledgeable and also has expertise in this field. Using their skills, we help our customers with the best solutions.

Hassle free process

Applying for a loan can be a lengthy process. Hence we have created our online portal to be user friendly. By this, we make sure that there is no hassle while filling the online applications and uploading their documents.

Benefits of applying with us:

You can benefit the most by applying for loans via Ruloans. With our expertise and over 50 partnered private Banks and NBFCs, we ensure that our customers get the best deals, offers and services.

Compare your loan options

Our internal team developed a highly proficient loan calculator. Using this, a customer can compare loan options, lenders, rate of interest etc. These parameters help a customer decide which loan they want to apply for.

Free expert guidance and advice

Our internal team is full of skilled and knowledgeable people who have been working in the loan industry for many years. They use their knowledge and experience to help customers borrow right. This is all done without charging a single dime from the customer.

Privacy policy

Privacy is very important and we ensure that our customers feel protected. None of their documents are shared with anyone except us and the lender of their choice.

How to Apply For a Business Loan on Ruloans?

  • Applying for a business on Ruloans involves few easy steps:
  • Step 1: Go to the 'Business Loan' page on our website and click on 'Apply Now' button.
  • Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
  • Step 3: Our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
  • Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.
  • Step 5: Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.

Frequently Ask Questions

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