What is a business loan?
Business loan means – capital is required to run a business, and in addition to this, money is required to increase the activity,
In such a situation, a trader has to take a loan to meet the shortage of capital in the business,
So, the lack of such money, the company is run, or the increase in the industry, that is, the loan taken for business work, is called the business loan,
As I said – Business loan to be considered in the business for the need of capital, now one more important is institutions, banks or government give the kind of investment available in the market to meet the type of money in business, i.e., particular How many types of business loans?
How many types of business loan are there?
First – the loan for the working capital, (WORKING CAPITAL LOAN)
Working capital or working capital, I mean, in everyday life, in a business, such as the salary of the workers, the company’s light bill, rent, and other expenses, which are repeated daily, weekly or every month,
Now, without the expense of the company, it is difficult to move, such loans are usually taken for less than 1 year, and these can be both types of Unsecured and Secured,
Second – Corporate term loan, (CorporatePayment LOANS)
This type of loan is given either to start a new business or to increase the current market, such as a company is often given to meet the need for capital reduction to expand its business.
Such loans are taken for a long time, and usually, there are secured loans, that is, the company has to mortgage the property for such loans,
Hence it is called – corporate term loan,
Third – Term finance loan,
Term Loan By any company, the company is taken to buy a fixed asset like office, plant, machinery, etc.,
Such loans are considered for up to 10 years, and they are repaid in installments,
Where can you buy a business loan?
Generally, Business Loan can take place from two places –
First – the business loan is given by the government
Second – the Business loan is given by the bank, private funding institutions, finance company,
In today’s topic, I will tell you mainly about taking credit from government institutions –
Due to taking business loan from the government,
People in business always give more priority to commercial loans than government or bank institutions, and it has some particular reason, that every businessperson, whether his company is old or new, is trying to borrow business from the government. Lives and they are the reasons –
- Low-interest rate – The interest rate of the business loan given by the government is much less compared to other institutions.
- More facility to repay the loan – Compared to other institutions, there is considerable benefit in repayment of loans given by the government,
- Debt waiver and other subsidy benefits – From time to time, to encourage more business, business and business for the general public, from time to time, business loans
Business loan given by government
With the help of National Bank and some other organizations, the Government provides business loans intending to increase trade and employment opportunities,
The main facilitators of the government giving such facilities are –
- The MUDRA Loan Scheme (Micro Units Development and Refinance Agency Ltd.)
- Stand Up India Scheme
- The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS)
- National Small Industries Corporation Limited (NSIC)
- Small Industries Development Bank of India (SIDBI)
- National Bank for Agriculture and Rural Development (NABARD)
- World Association for Small and Medium Enterprises (WASME)
These are all government institutions where you can take a business loan business, for details, you can check the latest information on their website by following the links given to the organizations given above.
Now talk about the process of taking a business loan from the government –
The process of taking a business loan from the government,
जैसे हमने देखा, सरकार अलग अलग संस्थाओ की मध्यम से बिज़नस लोन की सुविधा देती है, सरकार से बिज़नस लोन लेने के लिए, सबसे पहले आपको ये समझना होगा कि आप किस संस्था के पास Business Loanलेने के लिए अप्लाई करते है,
As we have seen, the government provides a medium-to-business loan of various institutions to borrow business from government. First, you have to understand that in which institute you apply for a business loan,
Typically, the process of taking a business loan from the government can be as follows –
- The person’s credit score should be good,
- The person is doing a legitimate business/business and wants to do it,
- A person has a copy of Income Tax (Income Tax Return), which verifies income,
- Apart from this, the person’s KYC
- All business licenses and a copy of business permits
- Apart from this, in addition to the legislative scheme applicable for business loans, as per the plan, other necessary documents to prove the required eligibility.
If you say straightforward, for the business loan given by the government, to prove the eligibility of different plans, you have to get all the information from the organization associated with that plan,
From this post, you can understand what a business loan is and how you can apply for a business loan from a government agency.