Raipur was once a small town but today it is a sprawling city bustling with activity and the infrastructural growth and development of the region is inspiring many new businessmen to launch their ventures here. In fact, the region is now thriving because of the presence of many small businesses here that has contributed to their growth of the economy of the adjoining semi- rural regions as well. As a new businessman trying to establish their own business in Raipur, the best course of action would be to apply for a business loan which will take care of all the initial expenses that a business requires and many banks and NBFCs like Bajaj Finserv provide these loans in the region.
To get a business loan in Raipur, there are certain aspects to be kept in mind to avoid the rejection of the loan application and to make it smooth and hassle free.
●Good credit score: A good credit score is an absolute must when it comes to applying for a loan for business. This is because business loans are unsecured loans and there are no guarantors or collateral required against it. So, the credit score of the borrower is the only way in which a lender will be able to understand the financial history of the person and ascertain whether he is a good option to loan out the money to the person or not. A score above 700 is usually considered to be a good score. Try to ensure that there is no missed payment or overdue bills- the most common aspects that affect the credit score.
●Check Eligibility: Many people make the mistake of applying for the quick business loans without checking whether they are eligible for the loan amount in the first place. It is true that a new businessman does not have much to show at the very onset but there are still certain basic criteria that have to be met and they vary from bank to bank, or other financial organizations. The best way to find out if one is eligible or not is through the use of the online eligibility calculator tool which will take into account aspects like current income, loan tenure, loan interest rate loan purpose and immediately tell you if you are eligible for the loan or not.
●Correct Documentation: This is one aspect that many businessmen fail to take into account and even if all goes well, face rejection during the final verification process. Current small business loan procedures require a lot less paperwork but even then, the entrepreneur will have to produce his KYC documents, proof of business like TAN and address of the office premises, IT returns of the last three years and bank details and any other documents that the lender might ask for. If you are planning to apply for a business loan in near future, it would be a good idea to start maintaining a file from the very beginning.
●Good Repayment Plan: This is perhaps the most crucial aspect of ensuring that the creditor will give you the loan. Small businesses might not make a huge profit in the first couple of years and even if they do, they largely go towards the betterment and the growth of the business. However, if the businessman can provide a blueprint of the company about where he wants to see his business after the first five or ten years and how he plans to do so, then it is often enough to convince the lender that the businessman is serious about repayment and often sanction loan amount when others would not, and also offer good business loan interest rate. One could also enlist the help of a financial adviser regarding this aspect of loan repayment and they will be able to clearly guide you how to best utilize the money from the profit and use it for maximum benefit.
By keeping these aspects in mind, it would be quite easy to get approved for a business loan in Raipur.