What is a Corporate Loan
In very simple terms, the loan market is broadly divided into two categories:
• Retail loans, and
• Business Loans
Loans given to individual consumers are called retail loans. Personal loan, home loan, auto loan, student loan, gold loan, credit cards, loan against property etc., fall under the category of retail loans. They can be further categorized into secured loans and unsecured loans.
Business loans, on the other hand, are loans given to companies and other such entities to meet their day-to-day expenses, fund their working capital requirements and expansion, etc. They are also called as corporate loans. A couple of examples could include infrastructure finance, working capital finance, term loans, letter of credit etc.
These loans are an excellent way for businesses to focus on their growth and generate more revenue. Over the years, such loans have become popular in India amongst business owners and proprietorships as it helps them overcome short-term and long-term financial hurdles.
Corporate loans could be unsecured or secured in nature. Some businesses might require the unsecured loan that is based solely on the creditworthiness of the business. Some businesses, who have the requisite collateral to offer, might go for secured loans since the loan amount is larger than an unsecured corporate loan.
Both commercial and government lenders offer the corporate loan. You need to fulfill certain eligibility criteria in order to qualify for these kinds of loans. Corporate loans are generally offered to those who have their business established for at least 2–3 years and have a proven track of profit.
There are variety of loan offers that are available in the market. The greatest challenge, however, is to find the right loan product that will suit your business needs.
Corporate Loan – How to apply
If you are looking for a Corporate Loan and are unsure about how to apply, then CreditMantri can guide you. You can typically apply for a business loan which can be utilized as working capital for your business, and to cater to other needs of your business.
You can check your eligibility and apply for a business loan by signing up with CreditMantri. It is quick, simple and above all, free.
CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a short
list of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender's credit criteria. Hence, the chances of your business loan application getting approved are higher.
Click here to sign up and apply for loans, the CreditMantri way!