[ad_1]
Finance is the blood of a business. Any business requires adequate amount of finance to survive, run and grow. Business loans provide financial assistance to organizations to grow and expand by financing the purchase of gear, working capital needs or hardware to support the business.
different types:
1. Overdraft
As the name suggests, overdraft refers to overdrawing from your current account. For this office, you will be charged the agreed interest rate. If you do not overdraw from your account, you will not be charged any interest.
2. Term Loan
Term loans can be availed for the here and now, long term or medium term. There are two types of term loans, unsecured business loans and secured business advances. An unsecured business loan requires you to pledge a guarantee with the bank, whereas an unsecured business advance does not require any security/insurance. Secured business advances reduce the financing cost as compared to unsecured business loans.
Bill lowering is an instant money back technique. You need to present bills of trade, which will be discounted for an amount less than the bill honor. The difference is retained by the bank as a marking down charge. You must submit the mandatory records such as request, shipping receipt, etc. that approve the merchandise transaction.
letter of credit:
A letter of acknowledgment is otherwise called LC. An LC is a letter of certification issued by the buyer’s bank, stating that the buyer will honor the installment as agreed upon in the terms and conditions of the offer when the merchant trades and ventures. LC is used as a part of universal trade in aggregate.
Mudra Scheme:
Mudra Yojana is a business loan scheme launched by the government for small and medium businesses in India. The government provides money to the banks and the banks in turn provide funds to the businesses in India. Hence, banks offer Mudra loans at a lower interest rate than standard business loans.
eligibility criteria:
1. Who is eligible to avail the benefits?
– Self Employed Businessman or Professional
– Limited or Private Limited Firm
– Manufacturer, retailer or service provider
2. Criteria
The age of the applicant should be between 21 to 65 years.
The business should be in existence for at least 3 years.
The business should be making profit for the last 2 years.
– Turnover should be at least Rs 40-50 lakh per year.
– The minimum profit earned should be Rs 1-2 lakh.
Required Documents:
– ITR of last 3 years
– Bank details
– business proof
– Certification of Practice
– Recent photograph of the applicant
– Identity Proof: Aadhaar Card, Voter ID Card, PAN Card, Company Registration Certificate, and so on.
– Residence proof
Other documents like Sole Proprietorship Declaration, Attested copy of Partnership Deed, Attested copy of Memorandum
Association and Articles of Association.
Read more for detail information: https://indianmoney.com/articles/how-to-get-a-business-loan-from-a-bank
[ad_2]
