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Business Loans
Benefits of Business loan
How does the Cibil Score affect your loan application?
How can you improve your CIBIL Score?

"Every Business has an opportunity that comes its way"

Business loans are primarily taken for funding towards working capital, expansion, purchase of fixed assets or machineries. Business loans bear the highest interest rate across all type of loans offered by Banks/ Finance companies. However, the major challenges that companies face today is in acquiring money. The best feature of Business loan is that it is an unsecured loan offered purely based on the market standing and past performance of the company, and the purpose for which the loan is taken.

Since this is an unsecured loan the interest rate charged by the banks remains high. Business loan amount ranges from around Rs.10 lacs to Rs.100 lacs and for a period between 1 to 4 yrs. They carry high prepayment penalty charges, as high as 5%. Therefore, it is critical for borrower’s to plan their requirement clearly before availing such a loan.

LOANDEALS not only ensures you the best Business loan deal available in the market but also updates you on the alternative finance options that may charge a comparatively lower interest rate.

Benefits of Business loan

Unsecured loans : Business loans are offered without any collateral and are based solely on the business model and repayment record of prevailing loans

Minimal documentations : Basic documents are demanded by the banks

High loan amount : Loan amount can vary from 10 lacs to 100 lacs

Quick repayment : Repayment period is from 1 to 4 years. This ensures that the liability of the company is for a short specific time frame, unlike OD/CC and other options offered by banks

Short Turnaround time : Loans are processed and amount is disbursed by banks within one week post verification of all documents. This proves to be beneficial for businesses that are looking to capitalise on an upcoming business opportunity

How does the CIBIL score affect your loan application?

CREDIT INFORMATION BUREAU (INDIA) LIMITED (CIBIL) is credit information bureau which has the credit history of all commercial and consumer borrowers. All Banks / Finance Companies, before lending to a prospective borrower will check the CIBIL report of the borrower. Based on the past performances of the borrower CIBIL allocates scores (CIBIL Score) to every borrower. CIBIL score plays an important role in determining the chances of a loan getting approved by the lenders. Below a certain level of score banks reject a loan application outright. The CIBIL score ranges from 100 to 999, and any score above 800 is considered as a Clean Borrower and his/her applications gets processed smoothly.

How can you improve your CIBIL Score?

Prompt and timely repayment of existing Loans (no delays on payments of any EMIs)

Clean Credit Card payment. Avoid any rollover of card payments. Making maximum payments due, rather than going with monthly repayment of minimum amount due.

Periodically ask for payment charts of existing loans and ensure that there are no charges in the Statement (In case of any disputes , settle with the concerned banks immediately)