In the years, loans are increasing exponentially in India's growing economy with a 15% rise year-on-year. Business loans for both specified and unspecified purposes are availed by institutions, which fuel the capital needs of the business growth this country deserves.
Working Capital
There are numerous purposes for proprietary and partnership companies to secure business loans. Business loans have the potential to provide for capital-centric processes like maintaining cash flow, purchasing machinery, industrial material, employee payments, and business expansion. They provide financial stability for efficient company performance.
Calculate the EMIs
A slight delay in repayment can cause unwanted depletion in the company's credit score. Applicants must carefully calculate their monthly instalments using an online business loan EMI calculator, also available on the official website of Fullerton India.
Multiple End-use options
Once the eligibility for business loans is fulfilled, applicants can decide on which type of business loan they prefer. Institutions offer specific industry-related loans like machinery loans, property loans, start-up loans, commercial vehicle loans, and working capital loans.
Collateral-free Loans
Unsecured business loans are offered up to Rs. 50 lakhs by institutions based on credit history and repayment capacity. They are mostly offered without any collateral requirement since the repayment tenure is less, and the borrower’s financial stability can avoid loan defaulting.
Attractive Interest Rates
A few basis points difference in the loan interest rate can escalate into higher repayment amounts to lenders. Borrowers with proven profit years can secure higher credit scores for lower interest rates. Better interest rates attract a higher volume of genuine borrowers since their eligibility for business loans might help them save enough funds from the total repayment amounts.
No Profit-sharing Required
Lending institutions are not co-owners of the company. Unlike shareholders and fund investors, banks do not require company or business owners to provide timely profits. A pre-decided instalment using the business loan EMI Calculator is sufficient for banks until the loan maturity.
Tax deductions
Any type of business loan is considered for a tax deduction, even personal loans utilised for business purposes are eligible for deductions. However, the remittance is only allowed on the interest and does not include the entire monthly instalment amount.
Also Read: Education Loan Procedure in India
