Top Four Types of Business Loans in India

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With thousands of people successfully converting their passions into their job, it is no surprise that starting a business has become immensely popular. But starting a business can be expensive, and not everyone can fund it. With this issue arising, small business loans in India have become popular. There are several types of business loans available today.

 

In this article, we will explain some of the most widely known and used business loans:

 

  • Working Capital Loan

 

When running a business, there are several daily expenses and some companies can find it difficult to cover them. Working capital loans are helpful when trying to cover these costs. The loan is beneficial in cases of small businesses, new startups, and entrepreneurs as well as it is a short-time small scale business loan.

 

  • Business Loan Against Property

 

As the name suggests, it is a type of business loan that you can take up against any property that you own. It is a loan which is especially useful for people who are taking up a business loan for the first time. The eligibility criteria are simpler, tenures are lengthier, and you can take significant amounts.

 

  • Business Loan Against Stock

 

With the skyrocketing competition, providing collateral has become integral when going for a business loan. If you find business loans against property risky, you can use your shares as collateral instead. Opting for this option can help you determine market values easily and these amounts are easier to realize even when you fail to repay the loan.

 

  • Term Loan

 

Probably the most common type of business loan, term loans are fixed amounts of loans taken for a fixed time. Borrowers usually take this loan to disperse capital expenditure but people can take them for other purposes too.  Term loans are perfect for individuals who need loans to fulfill a specific financial need.

 

Thus, small business loans in India can come in different forms and you can choose the one that fits your requirements the best. Other than these business loans, there are equipment financing options and overdraft facilities that people can use.

 

To ensure that you get the best services, you should try to get loans from a trustworthy company that will help you get loans at your convenience and help you understand the process in a transparent manner. Peerless Finance is one such company that allows customers to get secured business loans at minimal interest rates and help their customers to choose wisely.

 

Here are some eligibility criteria for the secured business loan that you can avail of at Peerless:

 

  • Field of Specialization: Sole Proprietorship, Partnership, Private Limited, Public Limited, or Trust / Society

 

  • Age: The minimum age of the promoter should be 24 years.

 

  • Turnover: Your company must have an annual turnover of Rs. 50 lacs or above

 

Some benefits of the small scale business loans at Peerless Finance:

 

  • Reasonable interest rates: Interest rates are a significant factor in loans. At Peerless, you get business loans at 16%

 

  • Significant Amount: You can avail of loans up to Rs. 1 crore with minimal documents.

 

  • Flexible Tenure: With Peerless, you get the benefit of repaying loans in 60 months on taking a small scale business loan.

 

  • Top-up Facility: With Peerless, you can avail yourself of a top-up facility available on review post six months. It helps users who need more funds.

 

  • OD / Term Loan: You can get the Overdraft / Term Loan facility from Peerless.

 

When taking a small scale business loan things can be confusing leaving one distressed. But with the help of reliable finance companies like Peerless Finance, you get the assistance that can help you see things distinctly and you can make good financial decisions. You can also get other types of loans like professional loans and equipment financing at Peerless.

 

To get a loan, contact Peerless Finance!

Mani Sekhar Roy