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Business Startup Loan
Are you looking for funds to fuel your business? The journey of an entrepreneur can be very exciting, with work that could be frustrating and rewarding in equal measure. Business and entrepreneurship are not for everybody. Most often, a budding entrepreneur is strapped of funds to start his venture. This is where a Business Startup Loan could help you.
What Is a Business Startup Loan?
A business startup loan is specifically aimed at financing startups with little or no business history. Banks and other financial companies provide financial assistance to business in all stages of the business lifecycle.
Securing funds for a startup could be one of the toughest challenges for an entrepreneur. While approaching for a business startup loan, keep the following in mind:
• Have a crisp business plan ready - outlining the goals and objectives of your business, as well as project a clear growth chart, including the returns generated.
• Estimate the amount of funds required as accurately as possible
• Clearly, outline the application of funds in your business plan
Business Startup Loan – Features
• Most lenders have the facility to apply online. It is quick and convenient
• Requires minimal documentation – there is generally not much paperwork involved.
• Prospective entrepreneurs need to prove that they have a solid credit history
• Generally, business startup loan is sanctioned without the need of any collateral or security. Third-party guarantor might be solicited for, depending on the lender's policies.
• Attractive interest rates – though this depends on the credit history of the individual/entity applying for the loan.
• Flexible loan amount, tenure and repayment methods.
• Quick application and disbursal process.
Business Startup Loan Eligibility
One looking for funds should own a business and must be ideally between 21 years and 65 years old. You can get started with only your business documents, bank statements and KYC documents.
Business Startup Loan Interest Rate
It depends on a host of eligibility criteria which might include but is not limited to - your credit worthiness, borrowing history and other factors that reflect your financial capability and behavior.
Additional Reading: Government Loans for Small Businesses
Documentation required
The documentation required is simple and straightforward. Following is a general list of documents which will be required. The lender might ask you additional documents as per their discretion.
• Application form with Passport Size Photographs
• PAN Card
• Identity Proof – Voter ID / Driving License / Passport (Anyone can be submitted)
• Address Proof – Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement (Anyone can be submitted)
• Six months bank statement
• Proof of business existence – business registration papers, etc.
Apply for Business Startup Loan
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 shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we prescreen 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 and credit cards, the CreditMantri way!