Starting a new business venture is one of the greatest feelings in the world. You get to be your own master after years of toiling hard as a diligent employee. Now, you get to do things your own way, put your ideas into practice and reap the benefits of your hard work. You are going to put in all your blood and sweat to get the venture off its feet and get it up and running. But, as the way things work in real life, you soon realise that running a business is not all about hard work and dedication.

It is also about the proper management of finances to ensure that the business goes on to expand and realises its true potential. Once your personal savings and sources of funds dry up, you need to look at alternate sources of funding to keep the things moving. In this situation, if your business venture is present in the NCR region, your best option is to avail a business loan of your choice from the business loan providers in Gurgaon and nearby areas.

What are business loans?

Business Loan is the name given to a set of loan products that are meant for business owners only and are offered by most financial institutions working in India, private sector as well as public sector. The amount borrowed as a business loan must only be used for financing of business activities only, such as the purchase of machinery, payment of expenses, upgradation of infrastructure, etc. Depending on the nature of the business loan and your credit profile, the repayment tenor can vary between 3-15 years. Usually, business loans are divided into two categories:

  • Secured Loans (which require hypothecation of collateral)

  • Unsecured Loans (which do not require hypothecation of collateral)

With the rapid integration of technology in the finance sector, you can now apply for a business loan online without collateral or with collateral conveniently. You can access detailed information regarding the interest rates, repayment tenor, eligibility criteria, terms, and conditions, etc. over the internet. Many business loan providers in Gurgaon and nearby areas now offer you the option of applying for different types of loans online and avail the benefits of quick processing and low interest rates.

Different types of business loans

As the needs and requirements for every business venture vary according to numerous factors, there are different types of specialised business loan products offered by financial institutions in Gurgaon. These products can be customized according to specific requirements and prevailing conditions. Following are the major different types of business loans that are available for business owners in India:

  • Unsecured Business Loans: Unsecured business loans are offered by financial institutions to business owners, without taking any security. You are free to use this amount as per your requirements freely and need not inform the lender regarding the usage of the money. The repayment tenor for an unsecured business loan can go up to 24 months.

  • Working Capital Loans: Working capital loans are offered by lenders to help you meet your short-term liquidity crisis. You need to avail a working capital loan if your business is not able to generate enough liquidity to take care of urgent expenses. Usually, the repayment tenor for a working capital loan is one year. These loans are ideally suitable when you have a big order coming up and need to ramp up your capacity accordingly or ensure that payments are made to the suppliers on time.

  • Term Loans: Terms loans are sanctioned for a specific purpose only, such as the purchase of land, building, machinery, or vehicle. The repayment tenor for a term loan is fixed and needs to repay in EMIs. This facility would help you to acquire capital assets without stressing your finances. Usually, these loans are unsecured in nature but require hypothecation of the asset with the lenders, while you continue to use it for your business.

  • Loan against Property and Top up loan: If you have a property, then you can pledge that property with the lender and then take a business loan against it. This business loan amount can be used according to your prudence. It is a form of a secured loan. You can also apply for a top-up loan if you have an existing loan running with a lender and have a perfect repayment track record. The lender would extend the mortgage on the loan and offer you the loan amount that must be paid in convenient EMIs.

  • Special Loans: Many lenders offer special business loans according to your specific needs. These loans are meant for the special type of businessmen and professionals. Some examples of such loans are Loan for Doctors, Loan for CA, Loan for shopkeepers etc.

With multiple types of business loans available at your disposal, there is nothing that could now hold you back when it comes to realising the true potential of your business.

 

Published by Matthew Piggot