With the rising number of NBFCs and lenders in the present era, it gets incredibly challenging to choose one for availing a loan. There are various financial requirements for the business that have to be met, but it is hard to fulfil them without taking a loan. This is where the need for SME loans come in.
What is a Small Business Loan?
SME loans can help you fulfil your dreams of growing your business by helping you meet your business expenses. With flexible tenures, secure repayment options, swift process, small business loans are a path to your happiness.
How to get finance for a small business easily and fastly?
Research & Planning:
Researching the various lenders and companies that offer small business loans is vital to ensure that you are getting the best deal and company. It is also essential to ensure that the lender suits your requirements and is the best in every possible way.
Decide on the Amount:
Deciding on the required amount is one of the essential primary steps. This is to ensure that you don't end up taking a higher amount than you need. So it is necessary to be firm on the amount required, so you stick to that and avail the right amount.
Eligibility:
It is essential to meet the eligibility criteria before you apply for any loan for SME. The following eligibility criteria must be met:
- You should be a minimum of 21 to a maximum of 65 years of age to be eligible for SME finance.
- Having co-applicant is vital before you apply for the loan.
- To be eligible to apply for SME financing, your business has to be in the market for at least two years.
- It is also crucial to have an account with an operational bank.
- CIBIL score proves your creditworthiness and therefore, is another crucial factor to be eligible for a small business loan. It would be beneficial if you have a minimum score of 600.
Documentation:
You must have all the documents before applying for a small business loan. Not possessing the required documents might make you non-eligible to apply for a loan.
- A recent passport size photograph with an identity proof is required.
- Valid address proof is also an essential document while applying for a small business loan.
- Age proof such as your passport, aadhar card, license or voter id is also vital.
- Income proof is also crucial wherein you will have to submit your profit and loss statements etc. for a small business loan.
Apply for the Loan:
Once you have checked the criteria for eligibility and documentation requirements, you can go to the nearest branch to apply for a sme loan and muthoot gold loan or visit the website of the decided NBFC or the lender and give your contact details. You will receive a call for the further process.
Therefore, by following the above steps, you can take a small business loan quickly with a hassle-free experience.
