Businesses in India are already on a surge! The ‘Make in India’ concept of the Central Government has motivated even the small business owners and startups to join.
Lucknow has not been far behind to join the bandwagon, and if you are a business owner willing to boost his/her business, a business loan in Lucknow can help.
It is because although startups or small businesses may have the business idea, they lack funds and that’s where small business loans can help.
Yes, prominent non-banking finance companies (NBFCs) like Bajaj Finserv are out there to offer you a loan for business up to Rs.30 lakh.
However, before you get carried away in the excitement and apply for a quick business loan, and face rejection, must consider some aspects before the loan application.
Before you are introduced to some vital elements before approaching a business loan in Lucknow, let’s provide some standard business loan eligibility conditions. Have a look!
Business loan in Lucknow eligibility conditions
- To get a business loan approval from a lender, there are some standard eligibility conditions to meet. It may vary from lenders to lenders.
- You should be a resident citizen of India
- Your business must be in operation for at least three years
- Your business should have filed its Income Tax Results (ITRs) during the last 1 year
- A leading Chartered Accountant or CA must audit the turnover of your business during its previous year
- Consider these points before availing a business loan in Lucknow!
- Have a quick look and then apply for a business loan in Lucknow with confidence!
- Know the financial needs of your business
Before applying for a loan for business in Lucknow or any other city in India, the most important thing to figure out is the ‘real’ financial need of your business. Availing a business loan without knowing the purpose can put you in a mess. Your business may not require higher loan amount and ask for more can put you in trouble. Why? It’s because it’s only you who will be repaying the loan and not anyone else. Thus, be sure of the amount that will work fine and apply for it after determining all odds.
What kind of business plan do you have?
Once you submit a request for a business loan to a lender, it will ask you for a business plan, a vital thing that entrepreneurs tend to forget. Thus, before applying for a business loan, ensure that you have a business plan ready to present to lenders. Informing the lenders about the business plan, profits ensure the credibility of your business and convince them that you can easily manage the loan repayment.
Do you have the required eligibility?
Unless you don’t fulfil the required eligibility for availing a loan for business along with some relevant individual and business documents, it will not be approved. Prepare to collect your and business’ documents to make a strong application. If you are unsure of the loan EMI and if you can afford it or not, you can utilize a business loan EMI calculator available free at a lender’s website free.
Shop around for the best business loan
Some business owners in excitement settle for the first lender that they apply once they see an approval. However, if you see that a lender has approved your business loan application easily, shop around to check if there are many more relevant offers. By checking some good deals suiting your business needs on a third-party website, you may come across some lenders offering your lower business loan interest rate. Compare all offers carefully before zeroing on offer.
The Bottom Line
Always know that a business loan in Lucknow or any other city is always waiting to serve you. The only thing is being sure of your needs and meeting the required eligibility and other conditions to manage an upcoming business loan.
Hope that going through some of the vital things to consider before applying for a business loan must have given you the confidence to work out your next move.