Business loan is taken by businessmen or entrepreneurs to meet with their business related needs. Business loan is an unsecured type of loan and the funds from this loan are used for business purposes only. The funds from this loan can be used for working capital, business expansion, for buying machinery or equipment, for developing infrastructure etc. Many banks and NBFCs around India offer exciting business loan with nominal eligibility criteria. The list of documents required and eligibility criteria to avail a business loan differs from bank to bank as per their policy terms.
Banks and NBFCs offer mainly two types of interest rates when it comes to business loan: Fixed Interest Rat & Floating Interest Rate.
In this type of interest rate, the interest rate on the principal loan amount doesn't change throughout the tenure. It isn't affected by the fluctuating market interest rates. Businessmen, who have a fixed monthly budget to pay for EMI, choose this type of interest rate.
Mumbai with a population over a million is the finance capital of India. Mumbai is host to almost all types of industries. Be it banking, finance, IT, entertainment industry, food and cutlery, wedding planning, medicine and hospitals, transport, construction etc. everything can be found in Mumbai. Be it a fresh entrepreneur or a company older than a century, everyone needs a loan for their respective businesses. Running a business in an extremely competitive city like Mumbai is not so easy. So whenever you find yourself in need of credit to expand or fund your business for multiple reasons, you have an option to choose a business loan. Buy getting a business loan via Ruloans is best option in Mumbai as we help you borrow right as per your needs.
Banks and NBFCs in Mumbai also offer special loans for women entrepreneurs. They are customized business loan plans for women to cater their needs and give them a chance to build a competitive business in the market.
Businessmen or entrepreneurs take business loan in Mumbai to meet with their various business related needs. We have listed a few of them below:
Even in an ongoing business in Mumbai, businessmen require ample amount of funds to sustain and fund for their daily operations. These loans help them to be sustainable soon and it can be paid off once the business starts to grow. This type of loan comes handy in a situation when the business earnings are not adequate.
Every entrepreneur wants his or her business to flourish beyond the boundaries of Mumbai. This thought comes to their mind when business starts to grow in Mumbai and there is a positive flow of profit. Businessmen understand the need and urge to expand their own product i.e. the very own business. But expanding the business beyond Mumbai's borders is not easy, financially speaking. It surely needs a strong monetary backing to meet with the needs of expanding the business. Whether its location, equipments, new recruitments or paying for new communication channel, businessmen need a bucket full of finance. Thus they should opt for business expansion loan. By taking this loan, businessmen can make sure that their respective business touches new heights of success.
Almost all types of businesses in Mumbai need specific machinery or equipments for smooth functioning. Many times these equipments are higher in price. Thus businessmen should opt for this type of loan to buy such equipments and pay it off with profits which will come from the use of these equipments or by putting them out on lease later.
Having a well built exquisite infrastructure is one of the key points of a business in Mumbai. Your clients many times judge you from the infrastructure you work within. Also it is easier to many businesses to have a well sorted customized infrastructure for smooth day to day affairs. Obviously having any kind of infrastructure, small or large, does not come in cheap in Mumbai. Thus businessmen should opt for this type of loan.
In this type of interest rate, the interest rate on the principal loan amount changes as per the fluctuating interest rates in the market throughout the tenure. With this interest rate, businessmen have to pay different amount of EMI every month with surprise fluctuations. The floating interest rates are linked to NBFC's base rates and bank's MCLR i.e. Marginal Cost of Lending Rate. These rates depend on Reserve Bank of India's quarterly base rate announcements. If the businessmen opt for this type of interest rate, he or she gets to pay lower amounts as compared to fixed interest rate.
To get a business loan with easy terms, one needs to have a strong credit score. The credit score is calculated on the basis of loan borrower's earlier financial activities. It is basically a numeric account of loan borrower's financial profile. The banks and NBFCs consider 750 as ideal credit score. But some banks and NBFCs offer business loan for credit score as low as 700, with negotiation.
The business loan amount which the businessmen will take also determines the interest rate on a business loan. The lower the amount, the slightly higher the interest rate is observed. With amount fluctuations, interest rate on business loan also changes.
|Bank/NBFC Name||Interest Rate*||Bank/NBFC Name||Interest Rate*|
|HDFC Bank Ltd.||15.50% onwards||ICICI Bank Ltd.||12.90% onwards|
|Kotak Mahindra Bank||15.5% onwards||Edelweiss Retail Finance Limited18.25% onwards||18.25% onwards|
|IndusInd Bank Ltd.||18% to onwards||Axis Bank Ltd.14.25% onwards||14.25% onwards|
|Bajaj Finance Ltd.||16% onwards||IntelleCash Microfinance Pvt. Ltd.||18% onwards|
|Capital First Ltd.||12% onwards||IIFL (India Infoline Finance Ltd.) 18% onwards||18% onwards|
|Capital Float||10% onwards||Lending Kraft||18% onwards|
|Magma Fincorp Ltd.||17.50% onwards||DHFL||17% onwards|
|Clix Capital||18% onwards||Yes Bank||13% onwards|
|Tata Capital Financial Services Ltd.||18% onwards||NeoGrowth Credit Pvt. Ltd.||16% onwards|
|Ratnakar Bank Ltd.||10.65% onwards||Standard Chartered Bank||16.5% onwards|
|Aditya Birla Finance Ltd.||18.5% onwards||Shriram City Union Finance Ltd.||11.49% onwards|
|Equitas Small Bank||22% onwards||Essel Finance||17% onwards|
|IDFC Bank Ltd.||18% onwards||Fullerton India Credit Co. Ltd.||22% onwards|
|HDB Financial Services Ltd.||18% onwards||InCred||18% onwards|
*The above mentioned statistics are as of December 2017. These can change as per the bank/NBFCs policy terms and the loan borrower's profile.
Mumbai with a population over a million is the finance capital of India. Mumbai is host to almost all types of industries. Be it banking, finance, IT, entertainment industry, food and cutlery, wedding planning, medicine and hospitals, transport, construction etc.
Business loan is taken by businessmen or entrepreneurs to meet with their business related needs. Business loan is an unsecured type of loan and the funds from this loan are used for business purposes only.
Small businesses in India are considered as the lifeline of the business industry.There are many micro, small and medium level businesses working towards making profit in India.To make huge conglomerate one has to start by taking small footsteps.