BASICS OF INDUSTRY LOAN : INTEREST RATE HOW TO GET IT !


Basics of Industry Loan !
BASICS OF INDUSTRY LOAN : INTEREST RATE HOW TO GET IT !
BASICS OF INDUSTRY LOAN : INTEREST RATE HOW TO GET IT !

As a business owner / business owner, you are always looking for opportunities to develop your business. But when those opportunities come, you really need money to take advantage of them.

It is very risky to borrow from an unorganised source because it will get you a very high interest rate (3% monthly to 10% !!!).

There are many other risks involved in taking the necessary money in this way, especially when you are new to the market and when your business is emerging.

Keeping all the risks in mind, you also need a commercial loan for its financial part.

You have two basic options from banks: safe and unsafe business loans. By taking business loan from banks, you will feel the interest rate and security of your self-esteem.

Upon taking a business loan and laying that debt, your credit score also increases so that you are comfortable in taking a loan in the future.
BENEFITS OF BUSINESS / INDUSTRY LOAN:
1. Interest Rate:

The interest rate of small business loans depends on various factors like loan duration, market mobility, credentials of the applicant, financial position of the business etc.

 Most government-backed financial plans that are given by banks and NBFCs provide loans at low rates. Interest rates to help business owners repay their debt over time, thereby reducing the possibility of bad loans (NPAs).

Typically, there is no hidden fee in these loans with other fees and one time fee, which reduces the cost of taking loan.

    2. Tax relief for businesses

Under the Income Tax Act, 1961, small business loans also provide tax benefits to borrowers. Therefore, the interest paid on such small business loans is eligible for tax deduction.
  1. No collateral (bail) is required:
Many banks offer small business loans to their clients without any collateral. Therefore, taking advantage of such loans means that businesses are unlikely to lose their property when they default on repayment of their debts.

In such cases, the business is evaluated on the basis of its expected business and cash flow.

Prior to applying for this loan, it is advisable that the entrepreneur advises the lender about the need for collateral to avoid any future fears. But unsecured loans are given to qualified business people only.
HOW TO GET BUSINESS / INDUSTRY LOAN:
The following people are eligible to apply for a business loan:

  • Self-employed person, proprietor, private limited company and partnership firm in the business of manufacturing, business or services.                                                                                              
  • The minimum business requirement for business (at least 3 million, but different for different banks)                                                                                                                                                  
  • Indian citizens who have been engaged in the current business (which requires loans) for 3 years and have 5 years of experience in total.                                                                                     
  • Whose businesses have been profitable for the last 2 years.                                                                
  • The minimum annual income (ITR) required for the business should be usually 1.5 lakh per year and at least the ITR files for at least two years.                                                                           
  • Applicant should be at least 21 years of age while applying for loan, and should not be more than 65 years of loan expiry.

 thanks for the time .

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