If you are based in Chennai and looking for a business loan, the internet can bring the best loan offers from around the country to your doorstep. You need not limit yourself to a local lender – every major bank and NBFC has a branch presence in the city and you can choose which offer best suits your requirements.
How do I apply for a business loan when located in Chennai?
First, you should research the various business loan offers available in the market and determine which lender offers the product most suited to your needs, including the interest rate charged and the processing fees. Many lenders allow you to do a quick check of your eligibility on their website. Once you determine the kind of loan you want and the lender, you can go ahead and apply for the loan online, or ask for a representative to contact you, or contact the lender directly through the contact details on their website.
Tips for a successful business loan application
Here are some pointers on how to maximise your chances of a successful loan application.
1. Have a clear business plan: Banks will lend you money if they think that you have a clear idea on how the money will be used. Before you apply for the loan, create a detailed business plan including cash flow projections. This will help lenders get good idea of how their money will be used and the expected results.
2. Check your eligibility: Most banks have a set of eligibility criteria with regard to this kind of loan which could include the minimum turnover, number of years in business and minimum annual income. It is important to make sure that you qualify for each of these before you apply for the loan to avoid the possibility of being rejected. Some banks allow you to check your eligibility online in a couple of minutes.
3. Have the required documentation ready: Many loan applications are rejected because the documentation is incomplete. If necessary, speak with a lending officer to get an accurate idea of the kind of documentation required for the loan. This will include ID and PAN card details, latest bank statements, latest ITR returns along with a CA certified balance sheet among other requirements.
4. Estimate the size of the required loan accurately: Make sure that you have a good business plan that justifies the size of the loan you are applying for. If you ask for too little you might run out of working capital, if you ask for too much, lenders might question your projections and planning.