Mumbai is called the city of dreams. Be it an engineer who wants to start his own business, a fashionista trying to expand her online page or a CA aspiring to open his/her firm, Mumbai is full of opportunities for every profession.
But it can be an expensive proposition. A business operation in Mumbai can be a strong base to build business operations. To take it forward successfully requires accurate business planning and a lump sum of investments.
That’s where an unsecured business loan in Mumbai can be a vital add-on.
All about business loans:
A business loan from financial institutes is a tailored financial advance meant to assist an enterprise with the necessary amount of funds to stem monetary shortcomings and build a sustainably strong setup.
There are primarily two types of business loans, secured and unsecured. In secured business loans, the borrower is required to pledge an asset as collateral, whereas in unsecured; the borrower doesn’t need to present collateral.
Numerous financial organisations provide an unsecured business loan in Mumbai. These loans require minimal paperwork and come with sufficient loan amounts for any business to meet immediate financial shortcomings.
Before you avail an unsecured business loan, it is vital to know your specific requirements and do thorough research on the options you have at hand.
Important checkpoints to avail any business loan:
- Chalk out a proper business plan – Know your market and the necessities required for the development and growth of your business. You should know how to find your business niche and how to work on it. An enterprise with a strong business plan and niche will find it easier to avail an unsecured business loan from any lender.
- Funding required – Before choosing your lender, first decide the amount you need and the purpose of the financing. Break up your monetary requirements across each point of investment. Also make sure to have a residual amount available for contingencies.
- EMIs and its interest – The loan EMI and tenor are more than just your repayment terms. EMIs are your additional financial liabilities across a certain amount of time which is the loan tenor. Make sure there is a balance between the expenses and the monthly turnover. Choose a tenor wisely and make sure to conduct proper research before availing any loan from any financial institute. It is vital that you make sure business loan does not pinch your operational budget.
- Amount of financing – Non-banking financial companies (NBFCs) such as Bajaj Finserv provide loan amounts of up to Rs. 30 Lakh. Research what are the requirements they have before availing any loan.
- Know the loan interest and charges – Different companies provide different rates of interest, processing fees, loan statement charges, penal interest in Mumbai. Bajaj Finserv offers Business Loans with rate of interests starting at 18%. Research on these checkpoints and then choose your unsecured business loan.
Basic eligibility criteria and documentation for a business loan:
Apart from researching your loan providers, there are other requirements a borrower has to meet. Requirements to availing an unsecured business loan in Mumbai include:
- The individual applying for a business loan should be between 25-55 years of age.
- A duly audited business turnover document.
- The business must be 3 years old.
- Income tax files, at least for the past year.
- Other necessary relevant financial documents along with a person’s KYC documents, PAN card, Aadhaar card, and Voter ID.
The credit or CIBIL score also plays a vital role in case of such loans. An individual with a below-par score may face rejection even if he/she ticks the other requisite pointers. Bajaj Finserv offers such loans to individuals with an average CIBIL score of 750 or above.