Business loans refer to unsecured income-based loans given for a short period of time for self-employed individuals or companies.
Business loans have no requirement of security or collateral and are offered purely on financial strength and credit history the borrower.
Such loans range from Rs 1 lakh to 1 crore and have a repayment period of usually 1-5 years. They are ideal for companies looking for funds of capital expenditure, infrastructure/ business development, business expansion or for that matter to fund any small to medium
They are usually not as flexible as overdrafts and other credit lines which usually support day-to-day working capital requirements but given the nature of the product, they are relatively easy to avail with simple paper work and speedy process of the loan and the borrower does not have to lock in any asset or security as collateral. However, this also means that Business loans are usually costlier than other forms of secured
Your eligibility is determined after the below mentioned details are examined fully:
A loan given by a bank, mortgage company or other financial institution for the purchase of a primary or investment residence.
In order to understand how a business loan works, imagine borrowing a capital to fund a startup or pay for an existing business’s expansion without pledging anything against the borrowed amount.
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project.
Overdraft means the act of withdrawing money from the bank account. It is a facility provided by the bank to its customers who withdraws money more than the amount he holds in his account.