All You Need To Know About An Online Business Loan In India

Starting a business in India can be a challenging task, and one of the biggest hurdles that most entrepreneurs face is obtaining funding. Whether you're starting a new venture or expanding your existing business, one of the best ways to get funding is through a business loan. And thanks to the new-age banks and NBFCs (Non-Banking Financial Companies), the process of obtaining a business loan has become easier than ever before.

However, before you choose to apply for business loan, it's important to understand the eligibility criteria, the types of loans available, and the application process. This blog post will provide you with a comprehensive guide on all you need to know about online business loans in India. We will cover the eligibility criteria, the different types of loans available, and the comparison between online business loans and traditional bank loans.

By the end of this blog post, you'll have a better understanding of online business loans in India and be able to make an informed decision about whether they are the right funding option for your business.

1. Eligibility criteria for online business loans in India

To be able to business loan apply online in India, you need to meet certain eligibility criteria. Firstly, you must be at least 21 years old and an Indian citizen. Secondly, your business should have been in operation for a minimum of 1-2 years, depending on the lender's policies. You also need to have a minimum annual turnover, which varies from lender to lender. Additionally, your credit score is an important factor in determining your eligibility for a loan. A majority of lender require borrowers to have a credit score above 750. Finally, you need to provide certain documents like your PAN card, business registration certificate, bank statements, and IT returns.

2. Types of online business loans available in India

There are several types of online business loans available in India, and each caters to specific business needs. Term loans are the most common type of loan and are offered for a fixed term at a predetermined interest rate. Working capital loans are designed to help businesses meet their day-to-day expenses. Equipment financing loans are used to purchase machinery or equipment. Invoice financing loans are designed to help businesses manage their cash flow by providing funds based on their outstanding invoices. Finally, a line of credit is a flexible type of loan that allows you to withdraw funds as and when you need them.

3. Comparison of online business loans vs. traditional bank loans

When it comes to obtaining funding for your business, you have two options: traditional bank loans or online business loans. While traditional bank loans offer stability and predictability, they can be slow and bureaucratic. On the other hand, business loan apply online offers convenience and speed; traditional bank loans require collateral, whereas online business loans may or may not require collateral, depending on the lender.

In conclusion, choosing to apply for business loan is an important step in growing your business, and online business loans in India offer a convenient and hassle-free way to get the funding you need. However, it's important to understand the eligibility criteria and the types of loans available.