Are You Aware Of The Various Types Of Business Loans?
Every business, regardless of its size or industry, is in a constant need for funds. The amount required varies depending on numerous factors such as size, nature of the business and which stage of development it is in. Usually, businesses which are looking to expand require additional financial support for growth.
In such cases, business loans are a viable option for owners. There are multiple NBFCs which offer easy to avail unsecured loans with all beneficial features. However, the availability of different types of business loans in India often confuses borrowers.
If you too want to avail an advance, here are 4 types of these loans explained to help you search easily.
- Working Capital Loan
Working capital refers to the money required to run the everyday operations of a business. Usually, it is utilised to procure raw materials, pay salaries, utility bills, office space rent and a host of other things. A working capital loan is the additional financing offered by lenders to cover these business expenses easily. You can also enjoy quick approval and disbursal of these types of business loans. - MSME/ SME Loans
Small and medium enterprises are emerging day by day. However, one of the primary issues that most of these enterprises suffer from is lack of funds for expansion. If you have a similar business, you can finance your growth using MSME and SME loan offered by leading financial organisations.
These kinds of business loans in India have flexible tenor ranging from 12 months to 60 months. Lenders disburse the loan amount directly to the borrower’s account within 24 hours of approval. Moreover, you can enjoy competitive interest rates with these business loans. All such features help borrowers to grow their businesses without any hassle. - Machinery Loan
It is an appropriate loan for manufacturing businesses looking to invest in new equipment. Most manufacturing machines are quite expensive, but a machinery loan can help business owners fund those effortlessly.
You should also find out most profitable manufacturing business in India, if you are going to start your own manufacturing business. They can use these loans for anything related to hardware, be it purchasing, leasing, repairing or transporting them. One may even use these loans to train the workforce on how to use the machinery. - Business Loans for Women
Women of India are now more involved in business than ever before. The number of women entrepreneurs is on a steady upward curve. Their business aspirations can be fuelled by business loans for women.
These advances are customised with attractive features which make them the most preferred types of business loans in India for the female entrepreneurs. Women can avail up to Rs. 30 Lakh to fund their businesses and repay over a flexible tenor of 12 to 96 months. With the world moving towards a digital age, you can also access your loan account from any location online.
All these loans are unsecured which implies that you do not have to pledge any collateral to receive the funds. It is especially important for small and medium businesses which already run their operation at a high-risk environment.
As a business owner, it is your responsibility to know about the different types of business loans in India and avail the one which best suits your requirements. If used carefully, these funds can change the fortune of any business for the better.
