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How to get a small business loan in India easily?
Do you have a small enterprise for which you need immediate funds to expand operations? If so, you can get SME business loans to meet your business requirements without any financial burden.
If your small business is doing well in terms of profits and you have a good credit score, you can get a loan amount based on your needs. You can avail yourself of affordable interest rates and flexible loan tenure. You can take a small business loan for the following purposes:
Benefits of taking a small business loan in India
Small business loans come with a host of features and benefits that you can avail of. For instance, you can get repayment flexibility, allowing you to make repayments based on your small business’ cash flow. An SME business loan can get you a lower interest rate compared to other unsecured loans. However, your interest rate depends on your loan amount, loan tenure, business model, financial conditions of your business, and credentials.
Other benefits that make loans for small businesses a better option to finance your business requirements are:
Tips to increase your small business loan eligibility
To get your preferred SME business loan amount and a lower interest rate, it is imperative to meet your lender’s eligibility criteria. If you do not meet their requirements, you must improve your small business loan eligibility by creating a well-thought business plan. You will also need to convince your lender that your business has a positive cash flow and can repay the loan amount without fail.
Also, make sure to improve your credit score. A higher credit score leads to the approval of small business loans in India. It also ensures a lower interest rate. A minimum CIBIL score of 700 would be required to get SME financing.
Types of small business loans available in India
There are several types of small business loans based on your business requirements, which are:
Things you must know before availing of a small business loan
Before applying for small business loans in India, you must know the underlying things to make an informed decision:
Steps to get small business loans
Follow the underlying steps to apply for SME finance:
There are different types of small business loans in India that you can choose based on your needs. For instance, you can opt for a working capital loan, term loan, cash credit facility, or machinery loan.
Small business loans’ offers differ across lenders in India. Compare at least three financial companies’ interest rates, loan amount, and repayment tenure. Choose a lender that offers the best deal.
Your credit score plays a vital role in securing SME finance. So, check your credit score for discrepancies and ensure to rectify mistakes, if any. The higher your credit score, the greater your chances of getting the best deal.
Prepare your documents
The requisite documents to apply for SME financing for your small business determines your eligibility. These documents include:
Send us your query
It has been brought to our notice that certain individuals are receiving fraudulent emails, phone calls, and messages, etc, about job vacancies with Muthoot FinCorp and they are also being asked to deposit money in certain bank accounts.
Please be informed that such communications and practices are completely mala fide and sent with an intent to defraud the public and bring disrepute to the goodwill of our Company. Our Company does not ever demand any fee/money against recruitment nor for the application/interview process.
The public at large is hereby cautioned not to be misled by any such communications received through emails, message or any other communication mode.
Please contact us for further information about the genuineness or otherwise of such communications at: