A business loan is specifically intended for business purposes. As with all the types of loans, it involves the creation of a debt that will be repaid with added interest. There are various types of business loans depending on the requirements of the different types of businesses such as

    • Mezzanine financing
    • bank loans
  • Asset-based financing, and
  • Invoice financing.

Business loan

  • The maximum loan amount which any borrower can ask for in a business loan is 25 Lakhs. The term of the loan is from 1- 5 years.
  • There are many financial institutions which provide business loan online easily and without any complications.
  • Applying for a business loan through a financial institution provides the borrower with certain advantages.
  • The process is brief and convenient, the financial results are personalized and the services that are provided are customer adaptable. Apply for a business loan online.

The process to avail business loan

Step 1

  • Before applying for a business loan, the borrower is supposed to check if he qualifies for the loan or not.
  • A simple form in which details such as name, mobile number, e-mail, the type of loan, the loan amount, and the loan tenure are to be filled to check the eligibility.

Step 2

  • Once it is seen that the borrower qualifies the eligibility, the lender will further ask you for some details related to the business loan such as
    • The annual turnover of the company
    • Credit score, and
    • How much time has the business been in operation?

Step 3

  • The borrower is then required to send some of the documents like
  • Address proof
  • Last 2 years balance sheet
  • Profit and loss statement, and
  • The registration details of the company.

Step 4

The financial institution such as legal Raasta coordinates with more than 30 banks and NBFC’s to get the application for business loans approved.

Step 5

The lender will get you the best rates and the rates depend on various factors such as

  1. The type of loan which the borrower choose
  2. The  annual turnover of the  company
  3. How long the borrower wants the loan?
  4. What is the credit score of the company?

Step 6

Once the loan is approved, the amount is credited to the borrower’s account.