Summary: - Having an owned business is a dream of million of people in our country. But affording for it is not possible for everybody. Nowadays that is not a problem at all. Because there are hundred of banks and financial institutions out there which provides loan for business. This type of loan is usually known as business loan.
Business loans are being provided by the financial institutions to the business entrepreneur and the business persons to help them in build up new business or renovate their existing business. Apart from the business men, the self employed people like doctors, lawyers, architects are also eligible for these kind of loans, if they meet certain criteria.
Loan for business can be of secured or unsecured types. Under secured kind of loans, the borrowers have to keep anything of his property as security to the bank. Under this category, the main advantage borrower gets is an affordable interest rate and good repayment terms. On the other hand, for taking business loan under unsecured category, the borrower has to pay comparatively high interest rate than secured loans. Apart from that, the lenders don't give a flexible repayment option to the borrower.
Apart from these two types, the loan for business are categorised into various type. These include trade loans, professional loan, accounts receivable loans, acquisition loans beginner's loans, franchisee loans, realty loans, construction loans etc. Let's discuss about these loans for getting a clear idea about business loans.
Beginners’ Loans: Persons wishing to start up their new business can go for these type of loans. Lenders provide these type of loans to start-up businesses.
Franchisee loans: These type of loans are being provided only for taking franchisees of well-established companies.
Trade loans - Banks provide trade loans only to the business men and the entrepreneur who wants to either build up their new business or renovate their existing business.
Accounts Receivable Loans: Under this category of loan, the business owners can take loan to obtain short-term working capital. Financial institutions in India usually sanctions this type of loan quickly and offers the borrower a low rate of interest
Cash Advance Against Merchant Account: One can avail this type loan against the monthly credit receipts. Under this category, generally a huge amount of money is being granted.
Realty Loans: These loans are provided to those people who wants to invest the money into real-estate sector.
Professional Loans: Self-employed professionals can take business loans under this category. Professionals such as lawyers, architects, doctors and chartered accountants can fulfil their desire to build up new business by having these loans.
Commercial Realty Loans: These loans are to be provided for acquiring commercial properties. The term of the loan may be fixed or variable
Acquisition Loans: Financial organisations in India do provide these loans for acquire other businesses.
Equipment Loans: People can go for these loans for purchasing business equipments
Business dependant loans: Lenders provides this type of loans in the name of the business house. The loan amount is based upon the borrower's ability of repayment the loan amount.
Hard Loans: These kind of loans are being provided to fulfil various miscellaneous needs of business. There are just few financial institutions in India which extend these kind of loans, but those institutions do so, extend it leniently
Construction Loans: Lenders provide this type of loan for commercial construction purposes.
From this above discussion, one thing is very clear that getting loans for business is not at all a factor in India. There are lots of Banks out there which provides these type of loans at very reasonable rate of interest and comfortable repayment options. Some of the top choices nowadays are, State Bank of India, ICICI bank, Standard Chartered Bank, Axis Bank, Bank of Baroda etc.
For more information about business loans in India and personal loans. Please visit our website: http://www.paisawaisa.com/
