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Top Features to Look Out for in the Best Business Loans

Top Features to Look Out for in the Best Business Loans

Business loans have revolutionised the way entrepreneurs used to raise capital for their ventures’ financing needs, whether big or small. Although the concept of balancing out a venture’s financial structure into owned and borrowed capital exists, businesses are more and more relying on these advances to fulfil their short and long-term funding needs. One of the primary reasons for their increasing popularity is that their easy and timely availability allows businesses to exploit market opportunities better.

Some of the best business loans in India also bring along attractive and compelling benefits, which make them all the more feasible to avail. Here, we have listed down some of the top and popular features you can find in the best of these financing options to make your borrowing decision easy. Take a look.

Popular Features of the Best Business Loans

  1. Unsecured financing

Business loans today are easily available as collateral-free advances. You would thus not require risking your business or personal asset to avail funding for your venture. These financing options only require you to meet a handful of eligibility criteria laid down by the lender, including annual income criteria. A high creditworthiness always works in favour of the borrower. Allowing him/her to secure competitive rates along with improved terms of the loan.

You can, nevertheless, always opt to avail secured financing as well from your lender to introduce necessary capital to your business.

  1. High funding value

Some of the best business loans also come with a high funding value despite. The absence of any security to ensure that the big-ticket funding needs of the enterprise borrowing are sufficiently met. With the right lender, eligible candidates can secure funding of up to Rs.25 Lakh conveniently as business loans. The amount is only higher in the case of secured business finance and depends on the market value of the asset collateralised.

  1. Extended repayment tenure

Financing under a business loan comes with long and flexible repayment tenures that can easily extend up to 5 years. You can choose a suitable term based on your financial standing. And repayment capacity so that the EMIs remain affordable while you meet your loan liability conveniently. Some of the reputed financial institutions also provide free financial tools like EMI calculators. That allow prospective borrowers to assess their total repayment liabilities, interest payable and EMI liabilities, based on which they can decide a suitable tenure of repayment.

  1. Flexibility of end-use

The best business loans come with no restriction to end-use, making them suitable for diverse business financing needs. You can thus utilise the amount so availed to fulfil immediate cash shortages, other working capital requirements, machinery purchase, production capacity enhancement, business expansion to new location, renovation of office space, hiring skilled workers or any other business financing need in the picture.

  1. Competitive rates of interest

Business loans today are also available at competitive rates and charges to ensure affordable financing for medium and small sized ventures. The availability of competing lenders in the market has ensured that the borrower receives the best rates on their business loans. To avail the best offers, you can compare the lenders available in the market; look out for government-backed subsidy schemes, apply during festive offers and adopt such innovative methods to secure the best rates. When comparing lenders, make sure to consider other applicable charges as well, this should ensure maximum affordability.

  1. Easy financing with minimum eligibility requirements

When availing the best business funding options, you can also be relaxed. Knowing that these funding options are available against minimum eligibility criteria. Some of the standard requirements you would need to fulfil when availing a business loan include age criteria, monthly and annual income, residential status, and the likes. When availing an unsecured business loan, you also need to meet minimum credit score requirement that ideally stands at 750.

  1. Reduced paperwork

Over the time, financial institutions have simplified the process of availing a business loan by reducing the paperwork requirement. You would thus only need to fulfil minimum document requirement laid down by your lender to avail the funds. The documents so required usually include identity proof, address proof, business ownership proof, income documents, and any other document needed.

  1. Multiple repayment options

The best business loan providers in the market also ensure that loan repayment is convenient and affordable for the borrowers. You can thus make repayment of your advance in easy EMIs calculated as per the loan amount, tenure and interest rate applied. You can also choose the balance transfer facility to avail better rates. Or, you can opt for prepayment facilities to cut short the loan tenure and reduce interest liability,

With easy online application along with quick approval and fast disbursal. Some of the best business loans today have made financing convenient for small and medium sized enterprises. You should, however, read through the fine print of the loan before signing your agreement. To ensure you are aware of all the applicable terms on your loan.

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