If you are an entrepreneur who is looking to start and establish your business in the market but do not have the funds to do so, then you can apply for a business loan. Business loans are specially made to help individuals or groups to establish, expand or improve their businesses.
A business loan has very minimal documentation and can be applied for online. The interest rates begin at just 13% and can go upwards based on one’s credit score, credit profile, loan amount and relationship with the bank. Tenures range from 1 year to 5 years. Loan amounts can go up to 50 lakhs or more in some cases.
How to apply?
1. You can apply online by filling in the application form and turning in all the required documents.
2. You can apply in person by visiting the lender’s branch with all the needed documents and filling out the application form for the same.
If you have never borrowed before, there are Non-Banking Financial Companies (NBFCs) such as LendingKart that offer business loans to individuals who have no credit score.
If a business loan is not possible, you can try a secured loan such as a gold loan. In this case, there is no need to have a credit score or show any proof of income as you give gold coins or jewellery as security against the loan amount received.
A gold loan has very low interest rates that begin at just 9.95% and can go up to 16% depending on the credit profile of the individual. There is very minimal documentation needed. Tenures range from 3 months to 4 years. The gold is kept very safely in vaults at the bank. Once the loan in repaid in full, the gold is given back to the customer safely.
How to apply?
1. You can simply walk over to your nearest lender’s branch with the gold coins or gold jewellery you own and pledge them for money.
2. The gold is assessed and about 60%-70% of the gold’s market value is given as a loan.
3. The gold is returned when the loan is repaid in full.
To apply for a business loan, click here.