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Small Business Loan
Small Business Loans are a perfect solution to businesses like retailers, traders, dealers, distributors, wholesalers & service providers.
Small Business Loans can be availed when an entity has an immediate requirement of funds related to business, with very minimal documentation, processing time and with immediate disbursal to customer business bank account. It serves as a great option for business enterprises for meeting their immediate business working capital needs or business expansion requirements.
We, at Muthoot Finance, understand our customers and provide them with easy, quick and perfect solutions for their requirements. One can apply for a Small Business Loan online as well for enhanced ease. Get in touch with us to know your business loan eligibility & other terms and conditions.
Business Loan EMI Calculator
Business Loans offer an easy way for MSME when they want to finance business requirements like working capital, capital expenditure, business expansion etc. An important aspect that a business owner should consider before availing a business loan is the EMI that they will be liable to pay.
If you want to avail a Small Business Loan from Muthoot Finance, you can use our Small Business Loan EMI calculator to easily calculate the EMI that you will have to pay even before you apply for your Small Business Loan online. All you need to do is enter details such as the loan amount and loan tenure to calculate the monthly loan EMI.
What Is Unsecured business Loan?
A Small Business Loan comes in handy when you have an immediate financial requirement with minimum turnaround time & it is also known as an ‘unsecured business loans’. Unlike other secured loan products, small business loans have easy eligibility criteria & documentation. Today, one can avail instant Small Business Loans from us to fulfil their fund requirement for their business needs.
How To Get A Business Loan?
If you are in need of immediate funds or working capital for your business/ business expansion, the first thing you need to do is submit a Small Business Loan application form along with applicable documents to the lender which is then verified and approved. After this, the loan amount is disbursed to your bank account. Upon receiving the loan amount, you are required to repay us through EMIs (equated monthly instalments) over the course of the loan repayment tenure.
A Small Business Loan, if used judiciously, can also prove to be advantageous for improving your credit score.
Why Choose Business Loan?
A Small Business Loan can help you take care of various fund requirements in a convenient manner for growth of your business. Major working capital and fund requirement needs can come up at any time without warning and could restrict your business growth or smooth business operations. In such situations, opting for a Small Business can be very helpful. Some of the common reasons for applying for a Small Business Loan can include your capital requirement for business expansion, working capital, etc.
In addition, Small Business Loans can also aid you in meeting any shortfall experienced in purchasing stock, or in cases of managing customer and vendor credit periods of your business, or for purchase of new equipment and enhancing your business infrastructure. Going for a Small Business Loan offers the easiest way to raise funds to make all your business growth plans come true, that too in a quick manner.
Let’s explore some of the other reasons why one can opt for a Small Business Loan:
- Quick Approval: At the time of securing a Small Business Loan, minimum documentation is required, which results in quicker processing and disbursement.
- Reasonable Interest Rates: Another reason to go for personal loans is that they are available at reasonable interest rates.
- Doorstep Service: All in all, numerous business entities are opting for instant small business loans today for many different business needs and you can avail one too if you have a fund requirement for business to take care of.
Factors That Affect Small business Loan Eligibility
Before you apply for a personal loan online, you should know about the different factors that impact your eligibility for a Small Business Loan. These include:
- Geographic Location: The area where you live plays an important role in determining your eligibility for a personal loan.
- Existing Credit: If you are already repaying other loans your eligibility for a new loan will be affected.
- Housing / Business Premise Situation: If you live in your own house or you own business premise, you have an increased chance of getting your Small Business Loan application approved.
- Business Income: The higher a business income, the higher is the loan amount they are eligible for. So, it may be said that your business loan eligibility also depends on your business income and cash flows.
- Business Banking : Healthy business transactions and good banking hygiene reflecting in your business bank account will have significant impact on your loan eligibility
- Business Vintage: Another determining factor in your small business eligibility is the number of years you have spent in the same business line .This will show stability of your business income and business model.
- Credit History: Your credit history and credit score have the largest impact on your business loan eligibility. The tenure, the interest rate, and the total loan amount that you can borrow will depend on this.
If individuals want to improve their eligibility for Small Business Loans, they should pay their loan EMIs and credit card dues on time and in full. This can decrease their existing debt, minimize credit utilization, and so on.
Factors That Impact Interest Rates On Small business Loans
Another thing that you should be aware of before you apply for a Small Business Loan online is the interest rate and the factors that affect it.
- Income : At the time of deciding the interest rate, loan providers consider the income of the applicant. People with high income may be offered a lower interest rate. Individuals with lower annual incomes, on the other hand, may have to pay an interest rate that is higher.
- Bureau Score: Bureau score of your business entity (individual in case of Proprietor) will also matter, higher score will yield better eligibility and loan amount.
- Nature of Business: There is an increased chance of a financial institution offering you a lower rate of interest if business industry you operate in has good stability and good margins
How To Get Lower Interest Rates On a Small business Loan?
When you are about to apply for a Small Business Loan online, there are certain tips that can prove to be helpful in availing a lower rate of interest. Some of these tips include:
- Improve Your Credit Score: A high credit score denotes that a business entity or an individual is creditworthy. A lender will offer lower interest rates to an applicant with a high credit score. So, before you apply for a Small Business Loan online, you should check your credit score.
- Do Not Miss Repayments: If you miss a credit card or a loan repayment, your credit score gets affected in an adverse manner. Loan providers generally consider your repayment history before deciding the interest rate for a Small Business Loan. Individuals who have paid their past EMIs as well as credit card bills on time are more likely to be charged a lower interest rate.
- Look Out For Offers: During festive occasions, financial institutions generally offer special interest rates for a limited period of time. You may be offered a lower interest rate if you apply for a loan when such offers are available.
Things To Know Before Applying For A Small business Loan
Some important points that you should be aware of before applying for a Small Business Loan are:
- Analyse the necessity of loan: The purpose of a Small Business Loan or any other loan for that matter is generally to meet business financial needs. So, if you can handle your financial situation without availing the loan, you must restrain from getting it.
- Penalty charges: If you don’t pay your EMIs/dues on time, a high penalty will be charged.
- Borrow within your means: When you apply for a Small Business Loan, ensure you borrow within your means and you have adequate cash flows to cover your business expenses and EMIs. A business owner should choose to go for a Small Business Loan in a careful manner after carrying out due research. You should also understand both the benefits and costs involved before availing a Small Business Loan.
What Documentation Is Required At Muthoot Finance For a Small Business Loan?
Loan Application, Business KYC, latest 6 months transacting business bank statement & individual KYC (proprietors / Partners/ Directors) documents are required to be submitted for applying for small business from Muthoot Finance. You will also be required to submit additional documents as decided by the sanctioning authority. You can read more about the documentation that is required for availing a Small Business Loan by Muthoot Finance in our Loan Policy.
Why Take a Small Business Loan From Muthoot Finance
Do you need immediate funds to deal with your business financial needs? We, at Muthoot Finance, understand our customers and their various needs and provide the right solutions. Fulfil all your business fund needs such as stock purchase, working capital, equipment purchase, business expansion… etc by availing a Small Business Loan from us. We offer loans that allow you to meet all kinds of business fund needs. At Muthoot Finance, you can easily apply for a Small Business Loan online.
When it comes to availing a Small Business Loan from us, you enjoy a variety of benefits as well. These include access to a loan that requires no collateral and minimum documentation. We offer Small Business Loans at affordable interest rates and with quick processing. Other highlights of our service include flexible repayment options with multiple tenures.
Individuals can avail a Small Business Loan through a simple and easy process from us, repayable as EMI for a maximum tenure of sixty-months. If you wish to avail unsecured loans for any financial purpose, we have the best offers for you.
There is no fixed time as to when you can apply for Small Business Loans as they are essentially loans for business purposes. Whenever you have a requirement, you can opt for a Small Business Loan from us. Some of the common reasons for which people apply for Small Business Loan include working capital gap, business expansion, purchasing stocks, capital expenditure, among others.
Small Business Loans from us are available for self-employed individuals (proprietor, partners, directors).
In terms of Small Business Loan eligibility, you should know that we may stipulate fulfilment of particular minimum criteria such as net business income, age, business vintage, nature of business and owning a house / office/ shop depending on the person’s risk profile. We, at Muthoot Finance also possesses the right to not approve an application if any of the criteria are not fulfilled, or without having to assign any particular reason.
Interest rates for Small Business Loans with us are fixed on the basis of the cost of funds, risk assessment, cost of operations, etc. and may vary for different schemes and different borrower categories. The recovery of processing charges as decided from time to time can also take place.
However, for our gold loan customers opting for Small Business Loans will have a special rate of interest.
After you apply for a Small Business Loan with us and your documents and proofs have been verified, the loan amount is disbursed to you as soon as possible. You can apply for an instant Small Business Loan with us to get the process started
The loan amount which you are eligible to borrow may differ on the basis of your business income. At the time of calculating the loan amount, your business income, business transactions in your business bank account as well as expenses are considered.
The Small Business Loan amount that you can avail depends on certain factors. The loan amount an individual is eligible to borrow varies based on their banking, bureau score and business income. During the calculation of the loan amount, business entities, business income and liabilities are taken into account. You can always get in touch with us to know more on the subject.
- You can repay the loan via EMI
- Via iMuthoot mobile app
- Virtual account via your net banking
- UPI apps
- To pay online Click here
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