BUSINESS LOAN
Business Loan
Is your business facing setbacks due to restricted cash flow? Do you need some financial support for expanding the business, investing in office or factory space, buying equipment or machinery, or expanding inventory? Almost all business owners know the pain of getting a business loan sanctioned. Are you one of those facing issues in getting your business loan approved? A Business Loan might put you on track. Read on to know more about Business Loan offers.
Business Loan Features
There are various features that make taking a business loan from SBI beneficial:
- The application process is simple and quick.
- Requires minimal documentation.
- Does not require any security or collateral.
- Attractive interest rates.
- Flexible loan amount, tenure, and repayment methods.
- Funding is available for up to Rs. 1 crore
- Flexible tenure up to 5 years
Purpose of Business Loans
The most common reasons to take business loans are as follows
1. Expanding Operations
Buying land or leasing a property to expand business operations when you feel that your business has grown large enough and scaling up at this moment is an opportunity that you do not wish to forgo, a business based on its growth projections can go for expanding operations more than once.
2. Purchase Equipment
Technology has become a key driver in the information age of business, and since technology comes with a pre-set expiry date, there is always a demand to purchase or upgrade existing equipment and technology. Buying/leasing/replacing a new equipment that will help improve the production or operations of the organization, alternatively the equipment can also be leased, it is best to conduct a cost-profit analysis to determine whether to buy or lease.
The advantage of buying equipment is that depreciation can be claimed each year apart from the first-year tax exemptions.
3. Purchase of inventory
Most often small businesses would require immediate capital for the purchase of inventory stock or raw material. There may arise a situation where the demand for your product may be very high in the market. Businesses may not have the funds to get the raw materials to meet the rise in demand. This problem can be solved when individuals and entrepreneurs take loans to buy the inventory needed for production.
4. To increase working capital
Many times, small businesses may not have enough working capitals to run their day-to-day activities. They will take short-term loans till their own assets earn enough revenues to meet their operational needs.
5. Improve credit history
If a business is looking to get a larger loan it is necessary for the company to have a good Credit History To make sure of this the individual or proprietors get short-term loans and pay them on time to improve their credit history. Consistent repayment of borrowings will lead to a positive credit history.
Business Loan Documents
The documentation required is simple and straightforward. Following are some of the documents which will be required:
- Application form with Passport Size Photographs of all applicants and co-applicants
- PAN Card
- Identity Proof – Voter ID / Driving License / Passport / Aadhar Card (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)
- Ownership proof of either residence or office either in the name of the applicant or jointly with family members
- Business Continuity Proof – Any one document dated 5 years old (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed)
- Letter certifying end use of the business loan funds on Business Letterhead