A Business Loan is a credit facility that enables business owners to address the diverse financial needs of their ventures at a specific point in time. This type of loan is usually unsecured, meaning it does not require collateral. The borrower is required to repay the loan through Equated Monthly Installments (EMI), with interest charged at the prevailing rate and for a specified tenure.
Applying for a Business Loan with Grahaan Capital is easy. You can apply online and involves only a few steps, which are mentioned below:
The eligibility criteria for a Business Loan from Grahaan Capital are quite simple. Applications are broadly assessed according to the following criteria:
Business Loan from Grahaan Capital offers you several advantages, such as:
No. A salaried person cannot take a Business Loan from Grahaan Capital. It is only available to business owners for their business requirements like working capital, business expansion, buying machinery, etc.
If you are a salaried employee, you can apply for a Personal Loan from Grahaan Capital.
Many banks and NBFCs offer Business Loan in India. You can apply for a Business Loan with us as we provide Business Loan services up to ₹1 Core without any collateral. Also, our online application process lets you get quick approval and disbursal.
You can get a Business Loan without collateral from Grahaan Capital. But, to get the loan, you must meet the eligibility requirements, and submit the necessary documents.
Loan restructuring involves the process of revising a loan contract by giving a specific section of the borrowers some temporary economic chances where they can relief from the financial troubles. It may be conducted when the loan borrower has difficulties with the liquidation of the credit.
A repayment plan rebuild can embody changing a repayment schedule, or interest rate, or even it may get changed into principal principal. The purpose is to get you comfortable in such a way that you can plan for the repayment effectively and avoid going into default.
Generally, a Business Loan does not help the business credit of an individual get better. The creditworthiness of a business is assessed individually by the lenders as they focus on business information, credit history, and all relevant factors.
On the contrary, several lenders refer to the personal credit of business owners, especially as regards small businesses or new business entities with little credit history, to decide whether a Business Loan should be offered or not.
The timing of a business loan depends on several variables but it is ideal not to wait till the last minute. In spite of the fact that business owners tend to access a Business Loan in order to have the immediate funds for a variety of reasons such as business expansion and growth or the solving of short-term cash flow discrepancies, the necessity occurs. Nevertheless, it is strongly advised that you ensure having an excellent credit score first before applying for Business Loan since the process is fast and the lender can provide you with the best interest rate available.
There can be several benefits available to you depending on the lender. With the Grahaan Capital Business Loan, you enjoy all kinds of Business Loan benefits including flexible repayment plans, collateral-free loans, an online application process, etc.
This is a loan feature that allows you to choose a repayment tenure that ranges up to 60 months. Its flexibility enables you to find suitable EMIs and allows you to tailor loan repayments to suit your business finances.
Loan foreclosure refers to the premature repayment of a loan prior to its designated maturity date. This entails the complete settlement of the remaining balance, encompassing both the principal amount and accrued interest, in a single payment. Although it can result in interest savings and enhance one's financial position, it is important to note that there may be associated fees and potential implications on cash flow. Therefore, thoughtful deliberation is necessary before proceeding with loan foreclosure.
The Business Loan’s maximum tenure is 60 months at Grahaan Capital. Hence, you are provided with the flexibility to pay your loan according to your business’s cash flow.
Yes. You will have to pay an additional amount in taxes when paying the processing fee, making prepayments, or when you pay the penalty for defaulting on EMIs.
Lenders mainly consider some common factors, such as borrower’s age, credit score, business revenue, residential location, outstanding liabilities, etc. for calculating the Business Loan interest rate in India.
Our business loan will give you the funds in sufficient amounts and enable you to use this money in any manner you want. We also equip you with the choice of dealing with the repayment period and setting your pocket-friendly EMIs. Our simple application process is designed to allow you to avail of our business loans whenever there are golden opportunities available in the market.
The sole way by which you can secure a business loan is to demonstrate that your profile is free from any credit risk. Whether you use your business assets as collateral or apply jointly with a business partner is your choice. Nevertheless, the co-applicant must be in good standing and no default records link to his name as well. However, you may present collateral or an additional applicant, but at the end of the day, the lending institution will use its discretion to approve your loan.
Every particular sector has a certain amount of risk own it. Consider, you just manufacture woolen clothes and serve the market of Indian consumers. In this regard, you have to deal with the problems of selling your products during the off-season, namely summer and monsoon seasons, especially. The type of business that you operate gives creditors a way to look at the security of your income. Also, you can run into a credit risk issue if your business is in a hostile state.
When applying for Business Loans, it is generally required to submit various documents such as business registration documents, proof of identity, proof of address, financial statements, bank statements, proof of ownership, a business plan, KYC documents, and any additional documents specified by the lender. The specific documents needed may vary based on the lender's requirements and the nature of the loan.
To get a Business Loan approved for an online business, follow these steps:
The credit score required for a Business Loan can fluctuate depending on the lender and the specific loan program being offered. Typically, lenders favor a credit score of 700 or higher to demonstrate the borrower's creditworthiness and minimize the risk of default. Nevertheless, certain lenders may take into account lower credit scores, considering additional factors such as the performance of the business and the presence of collateral.
Business Loan documents are important as they serve multiple purposes:
It is essential to submit Business Loan documents as they provide crucial information for lenders to appraise the borrower's creditworthiness, analyze the business's viability, verify legal compliance, and determine the loan terms. These documents serve as substantiation of the borrower's financial stability, business performance, and ability to repay the loan.
Most of the time, you can access the Business Loan documents list online. We provide the list of required documents here, making it convenient for borrowers to download the necessary forms and checklists. This helps simplify the document submission process for a Business Loan application.
A business loan amortization table is a concise schedule detailing the repayment of a loan. It includes the beginning balance, payment amount (comprising principal and interest), principal portion, interest, and ending balance. This table aids borrowers and lenders in understanding repayment dynamics, including how payments are distributed between principal and interest, and tracks the decreasing loan balance over time.
Any missed EMI for a loan will be added to the next month's EMI. However, keep in mind that missed EMIs result in late payment charges. It is also detrimental to your credit score. To avoid such situations, it is best to automate your payments to pay EMIs on time.
Financial institutions typically charge a fixed interest rate on a business loan, so the EMI remains constant throughout the loan term. However, if your lender offers this loan at a floating rate or you choose to reschedule the repayment terms, the EMI will change.