R S Marketing - Business Loan

What is a Business Loan?

Many times businessmen find themselves in need of credit to expand or fund their business for multiple reasons. They need the funds to buy some equipment, working capital gap ,payment to creditors, pay off business dues, pay employee’s salary, to expand etc. Businessmen can’t put the funds in line from their personal savings. Thus they opt for business loans. The business loan works as the perfect financial aid for such situations. Taking a business loan is always a safe and easy way to tackle your business related financial needs. You can also apply for a business loan if you want to start a new business. The terms and conditions to avail such a loan are different than the loan taken for already running business. Also each business is different in various aspects thus it requires different documents and is applied to different criteria. That’s why banks and NBFCs offer customized business loan plans as per the requirement of applicant/s. These plans are applicant/s centric and made with keeping financial alternatives in lure. Banks and NBFCs also offer special loans for women entrepreneurs. They are customized business loan plans for women to cater their needs and give them a chance to build a competitive business in the market.

Why should I take a Business Loan?

Businessmen or entrepreneurs take business loan to meet with their various business related needs. We have listed a few of them below:

Business loan for working capital

The main purpose of this loan is to finance the short-term operational needs of a company. When a firm doesn’t have enough money on the hand for dealing with their daily expenses, they go for the working capital loans. In simple words, these loans are the corporate debt borrowings that are used by a firm for tackling with their daily expenses. There are lots of companies in India who doesn’t have a stable revenue all over the year. They work on a cyclical sales model that depends on the requirements of the retailer. These loans help them to be sustainable soon and it can be paid off once the business starts to grow. Keeping this in mind, we offer you a host of innovative products and services which are customised to meet your evolving financial needs to meet your purpose.

Business loan for buying machinery or equipment

Almost all types of businesses need specific machinery or equipment for smooth functioning. Equipment loans are loans to buy business equipment. Businesses will often have the need to purchase, replace, repair, or upgrade various kinds of equipment to process,manufacture, or produce their product.Many times these equipment are higher in price. Thus businessmen opt for this type of loan to buy such equipment and pay it off with profits which will come from the use of these equipment or by putting them out on lease later. When considering business equipment loans, know that you can also look into leasing the equipment.The collateral for the loan is the item or items you purchase with the equipment loan.

Business loan for business expansion

Every entrepreneur wants his or her business to flourish beyond the boundaries of its local position. This though comes to their mind when business starts to grow in its initial location and there is a positive flow of profit. Businessmen understand the need and urge to expand their own product i.e. the very own business. But expanding the business beyond local capacities is not easy, financially speaking. It surely needs a strong monetary backing to meet with the needs of expanding the business. Whether its location, equipments, new recruitments or paying for new communication channel, businessmen need a bucket full of finance. Thus they opt for business expansion loan. By taking this loan, businessmen make sure that their respective business touches new heights of success.

Business loan for developing infrastructure

Having a well built exquisite infrastructure is one of the key points of a business. Your clients many times judge you from the infrastructure you work within. Also it is easier to many businesses to have a well sorted customised infrastructure for smooth day to day affairs. Obviously having any kind of infrastructure, small or large, does not come in cheap. Thus businessmen opt for this type of loan. The hassle-free finance eases your operational concerns and assists in developing urban infrastructure and other projects targeted towards the well-being of our nation. We provide loans covering an entire range of infrastructure space. We customise the solutions based on requirements and provide working capital and project finance for contractors. Attractive lease options are also available with us.

What are the Features and Benefits of a Business Loan?

You can avail this loan to tackle with your immediate financial requirement like daily capital needs.

Business loans can also help in tax benefits for the company

You don’t have to put anything as collateral or need a guarantee for a business loan up to Rs. 75,00,000.

Banks offer customized repayment schemes for business loans. You can repay the business loan Daily, Weekly or fortnightly.

You don’t need to show Income Tax Return for loan up to 10,00,000.

Business loan offers you lower interest rate compared to personal loans.

You can avail a business loan ranging anywhere between Rs.50,000 to Rs. 75,00,000.

What are the different types of Business Loans in India?

There are many types of businesses in India which require various types of loans. To match with all of their needs, banks and NBFCs have come up with various types of business loans. Some of these are mentioned below:

Business loans by government

The government of India helps various small businesses by offering them business loan under various schemes. One such scheme is Micro Units Development and Refinance Agency ltd, also known as ‘Pradhan Mantri MUDRA Yojana’. It was started with one goal: fulfilling all the funding needs of non cooperative small businesses.

Business loan for buying machinery or equipment

Almost all types of businesses need specific machinery or equipments for smooth functioning. Many times these equipments are higher in price. Thus businessmen opt for this type of loan to buy such equipments and pay it off with profits which will come from the use of these equipments or by putting them out on lease later.

Micro business loans

This is a type of small business loan which give you a smaller repayment term. The maximum repayment term for micro loans is 6 years. Microloans can be the perfect source of funding for hiring your first employee, covering startup costs, or purchasing initial inventory for your business.

Business loans for self employed professionals

This is a type of unsecured loan which is given to self-employed professionals. The loan amount varies from Rs. 25,000 to Rs. 75,00,000. The amount depends on the applicant’s financial status and history. Self-employed professionals include CA, CS, doctor, engineer, architect, trader, commission agent, contractor etc.

Business loan to finance a project

This type of loan is given for a long term specific business project. The company has to present a project assessment report on which the loan is granted. Loan for business gives a credit line facility, enabling you to expand your business to new heights, upgrade your existing business to latest machineries and equipment.

Business loan for working capital

Even in an ongoing business, businessmen require ample amount of funds to sustain and fund for their daily operations. These loans help them to be sustainable soon and it can be paid off once the business starts to grow. This type of loan comes handy in a situation when the business earnings are not adequate.

Business loan to finance equipment

Almost all types of businesses need specific machinery or equipments for smooth functioning. Many times these equipments are higher in price. Thus businessmen opt for this type of loan to buy such equipments and pay it off with profits which will come from the use of these equipments or by putting them out on lease later.

What are the different types of Business Loans in India?

Banks offer business loan to borrowers who fulfill their designed eligibility. The eligibility criteria changes from bank to bank and the profile of the borrower. But there are some commonalities which you have to follow or acquire to get a business loan from any bank. Banks give business loan by dividing their customer’s profession and their income history. The common and generic factors are listed below:

Personal Loan

Personal loan is a type of unsecured loan.

A borrower can take a personal loan for personal use without any security or guarantor.

Rate of interest for personal loans is higher.

A borrower has to pay higher EMIs.

In order to get a personal loan, the borrower’s income defines the value of sanctioned loan amount.

The repayment tenure for personal loan rages between 12-72 months (1-6 years).

Loan Against Property

Loan against property is a type of secured loan.

A borrower has to mortgage the residential or commercial property for loan against property.

Rate of interest for loan against property is lower.

A borrower pays cheaper EMIs.

The approved loan amount for loan against property depends on the borrower’s income details as well as value of the property which is being kept as mortgage.

The repayment tenure for loan against property goes maximum to 180 months (15 years).

What are the features of Loan Against Property?

Loan against property is a type of secured loan. A borrower has to mortgage the residential or commercial property for loan against property.

You can get loan against property by keeping residential as well as commercial properties as mortgage.

The interest rates on this loan are decided considering various aspects of applicant’s profile. Like applicant’s monthly salary, income details of self employees or businessmen, amount taken as loan etc. As this is a type of secured loan, banks and NBFC’s offer lower rate of interest.

This is a long tenure loan as the repayment period is as long as 15 years. Banks and NBFCs offer higher loan amount for longer tenure with enchanting interest rates as compared to other loan plans.

The borrower is also supposed to pay all the hidden and extra charges such as processing fee and administrative fee. The borrower also has to pay the bank for property valuation and its processing fee. Many banks ask to pay 1% of loan amount sanctioned.

The process of obtaining loan against property is very quick and hassle free. Some banks approve the loan as quick as within three days.

Mortgage loans prove to be the best way to debt consolidation. That mean you can pay of your multiple debts by bringing them under a singular debt.

You can use your collateral property while repaying the LAPs, unlike gold where the gold ornaments remain with the banks or NBFCs and you don’t get them back until the loan is paid in full.

If the property is owned by partners or directors of a company, it can be taken in the name of that firm.

Borrower can avail loans from 5 lakh onwards against property, if they apply for LAPs. The minimum amount Rs. 10-15 lakh.

What are the Eligibility Criteria to avail a Loan Against Property?

Banks have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories

Self Employed Professionals (SEP): Doctors, CA, CS, architects, engineer etc.

Self Employed Non Professionals (SENP): Trader, commission agent, contractor etc.

Also, if you are applying as a company, you can avail loan by applying under following entities:

1. Partnerships/Propretorship

2. Limited Liability Partnerships

3. Private Limited Companies

Other important requirements to avail Business Loan:

1. The minimum turnover of your business should be Rs. 60,00,000. The turnover should be in positive track.

2. You should have minimum 3 years of experience in current business and 5 years of experience in overall business industry.

3. Your business must be making profit for last 2 years.

4. The age of the applicant should be minimum 25 year and maximum 65 years5. You should have paid your business’s Income Tax Returns for last 2 years.

5. You should have paid your business’s Income Tax Returns for last 2 years.

6. The borrowers should have a strong credit history. They should have a credit report ready for bank reviewing.

What are the Documents Required to avail a Business Loan?

1. Neatly signed and filled loan against property application form.

2. Passport-size photographs.

3. Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.

4. Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.

5. Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.

6. PAN Card – For Company /Firm/ individual.

7. Copy of details of all existing loans.

8. Bank statements of last 6 months from application date.9. Business proof (registration of business)

9. Business proof (registration of business)

10. Copy of ITR/Assessment Orders of 3 years

11. Copy of challans proving that Advance Income Tax has been paid.

12. Balance sheet and Profit & Loss details of business from last 2 years. These details should be certified by CA.

13. Proof of continuation which will include ITR, trade license, establishment and sales tax certificate

What are the different types of Business Loans in India?

There are many types of businesses in India which require various types of loans. To match with all of their needs, banks and NBFCs have come up with various types of business loans. Some of these are mentioned below:

Hassle free process

We have developed an efficient, smooth and easy process for our consumers to get a business loan. Our easy to use online procedure allows consumers to apply documents quickly also guide the consumers to embark on a hassle free process.

Compare your loan options

You can compare interest rates, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your loan as per your budget.

Privacy policy

We, at RS, understand the value of your documents and keeping them safe and private. Your loan applications are processed electronically with complete privacy and transparency.

Benefits of applying with us

We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a business loan with us, gives you a chance to avail the best offers and deals from our partner banks and NBFCs.

Free expert guidance and advice

Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, without charging a dime.

How to Apply For a Business Loan on RS Marketing ?

Applying for a business on RS Marketing involves few easy steps:

Step 1: Go to the ‘Business Loan’ page on our website and click on ‘Check Your Eligibility’ box.

Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.

Step 3: Our loan calculator presents you a list of banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.

Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.

Step 5: Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.

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