Top 5 ways to avail business loan online
You may avail a business loan online from a financial institution to start a new business or expand your existing business. The business loan amount, interest rates, and other terms and conditions largely depend on your credit score, repayment history, and financial condition.
Since the small business sector makes up a considerable percentage of overall Indian business, the Indian government rolls out various loan schemes for start-ups and MSMEs. Let’s talk about the top 5 ways to avail of business loans online.
5 Ways To Avail Business Loan Online
1. Small Business Loans from NBFCs
Many NBFCs offer small business loans to start-ups and existing businesses. These are unsecured business loans that one can avail of without collateral, guarantor, or security. Borrowers may avail an ample loan amount from NBFCs and use it to fund any of their business-related activities. Whether you want to purchase inventory, upgrade equipment, expand the workplace, hire staff, invest in marketing, or build working capital, you can fund all these expenses using a small business loan from a reputed NBFC.
2. Pradhan Mantri Mudra Yojana (PMMY)
MUDRA (Micro Units Development and Refinance Agency) heads this scheme that offers loans to different trading, service, and manufacturing-related activities. Launched in 2015, business loan applications can be made in three categories under this scheme: Tarun, Kishor, and Shishu. The amounts may range from ₹ 50,000 to ₹ 10 lakh. They are often offered to shopkeepers, artisans, machine operators, repair shops, vegetable vendors, etc.
3. Credit Guarantee Scheme
Both new and existing businesses can avail this loan. They are often available to MSMEs involved in the manufacturing and service activities, excluding agriculture, educational institutes, self-help groups, retailers, etc. CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) heads this scheme, under which they offer loans of up to ₹ 2 Crore to borrowers.
4. Stand-Up India
Headed by SIDBI (Small Industries Development Bank of India), this scheme was launched in 2016, under which enterprises involved in services, trading, and manufacturing get loans of ₹ 10 lakh to ₹ 1 Crore. The maximum moratorium period is 18 months, and the borrowers can repay the loan amount in 7 years. SIDBI also heads the Sustainable Finance Scheme, that offers loans to industries dealing in renewable and non-renewable energy, green energy, and technology hardware.
5. Psbloansin59minutes.com
If you plan to establish a business, this digital platform can help you get a business loan. You can get a loan of up to ₹ 10 lakh under the Mudra scheme or ₹ 5 Crore under the MSME loan scheme. You do not need to submit your business loan documents anywhere. Just upload them online, and you may get your approval within minutes.
These are a few ways of applying for business loans that MSMEs can adopt to fund their planned or unplanned expenses. Whether you want to start a new business or expand your existing business to let it grow, business loans can finance your plan and give you wings.
Steps to Apply for a Business Loan Online
If you are planning to apply for business loan online, these are the steps to follow:
- Select the business loan you want to apply for.
- Enter the details requested.
- Upload the required business loan documents.
- Enter the loan amount.
- Select the repayment tenure according to your repayment capacity.
- Get information about whether you are eligible for a business loan or not, how much loan amount you can avail, and at what interest rate.
- If you accept the loan offer, you will receive a reference number that you can use to track your application status and for further communication.
- Within a few hours of your verification, you will receive your approval and have the loan money deposited into your bank account.
Conclusion
Applying for business loans online is one of the easiest and fastest methods of obtaining the required funds. Follow the lender’s instructions and ensure a high credit score to improve your chances of getting approval. When it’s time to build or expand your business, a business loan can help you achieve your goals without worrying about finances.
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