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Things to know before applying for Business Loan

A loan which is granted for business use to a business/company; usually unsecured and based on the borrower's integrity and ability to pay.

A business loan is normally used for business purposes like an expansion of business or to fund the startup business etc.

The main advantage for choosing business loan is that you uphold manage over your business. Unlike equity investors, lenders have no spoken in your business and are not permitted to your business proceeds. The only obligation you are indebted to your lender is to pay back the loan as decided upon.

Lastly, one last advantage that can be very ready to lend a hand so that the loan payments that goes towards paying off the interest on the loan can be deducted as a business expense for tax purposes.

Loans are easier to contract with when a company has enough cash run to make repayment sensible, and a recognized company likely has more security to offer to secure the loans. Finally, it's worth nothing that loans and equity are treated differently for tax purposes, so consult with a business tax advisor to see if one course of action makes more sense than the other.

Bank/NBFC offers Business Loan from Rs.1 lac to Rs.50 lacs and it can be repaid over a period of 12 months to 84 months. The loan amount you are eligible for and the interest rate you will be charged are dependent on factors such as turnover, Profit, vintage and past financial credit history with a pattern.