Business Loan In Mumbai
Business Loan In Mumbai
A business loan can help any business person with their existing business for multiple situations. A business during this time period might be short of capital, latest technology, equipment and manpower. Many times the individual can utilize his/her own savings, but that wonâ€™t be possible each time. Hence for such instances, taking a business loan can help you solve all cash problems and ensure that your business can run smoothly with full efficiency.
Taking a business loan in Mumbai is very easy as there are many lenders in the market that provide this service. You can also apply for a business loan if you want to start a new business. The terms and conditions to avail a new business loan are different than the loan taken for an existing business.
Each business is different in various aspects. That’s why Banks and NBFCs offer customized business loan plans as per the requirement of applicant/s. These plans are applicant/s centric and crafted keeping financial alternatives in mind.
Why should I take a Business Loan in Mumbai?
Mumbai with a population over 18 million is supposedly the finance capital of India. Mumbai is host to almost every type of industry, be it Banking, Finance, IT, Entertainment industry, Food & Cutlery, Wedding planning, Medicine & Hospitals, Transport, Construction and many more. Be it a first time entrepreneur or a company thatâ€™s older than a century, everyone needs a loan for their respective businesses. Running a business in an extremely competitive city like Mumbai is not so easy. So whenever you find yourself in need of credit to expand or fund your business, you can opt for a Business loan via Richi Loans & Financial Services in Mumbai. We say this because Richi Loans & Financial Services follows a mantra that is to help you borrow right as per your needs.
Banks and NBFCs in Mumbai also offer special loans for women entrepreneurs. They are customized business loan plans for women to cater to their needs and give them a chance to build a competitive business in the market. Businessmen or entrepreneurs take a Business loan in Mumbai so they can meet with their various business related needs. We have listed a few of them below:
Business loan for working capital
In Mumbai, businesses compete with each other and hence for a business to survive in this competitive environment, they need to suffice with adequate working capital. This working capital must be able to deal with all the issues that the business faces on a daily scale right from paying wages to handling contingency and making timely payments towards creditors, debtors and any other debt obligations.
Business loan for buying machinery or equipment
A business can run smoothly when they have the latest technology and the machines which can improve their efficiency more than normal. These machines will cost a lot more when the safety parameters are added to it. But they cannot update the machines every now and then because of the high costs of the new machines and low depreciation associated with the old machines. Hence with a business loan in Mumbai, a business person can purchase such machinery and equipments which will in turn help the business grow to new heights.
Business loan for business expansion
A business strives in order to grow from local to national boundaries. From there the next step is to move the business to international borders. But in order to move the business to the next step, there is a lot of effort required. The sales must be on an all time high and only when the businessperson can exhaust the resources of the area where they operate, they can move to a new area. Moving to a new area is not an easy decision as you need to arrange for a new location, factory, warehouse, labor, supply chain, logistics and many more things. These decisions would need a lot of money which the business person might not have. Hence in order to ensure growth of the business, he/she can opt for a business loan in Mumbai. With the business loan amount, the business person can arrange for everything that can help his business reach a new height.
Business loan for developing infrastructure
A business must be visually pleasing. In case of a showroom, the infrastructure must be state of the art. It makes sense to spend more money on it as it resembles the appearance of your business. Whatever look you give to it will reap benefits towards your business. Giving such a look will cost a lot of money and hence a business person can opt for a business loan. With this amount, the business person can ensure that the shop gets a good appearance in a city like Mumbai.
What are the Features and Benefits of a Business Loan in Mumbai?
- You can avail a business loan in Mumbai to tackle with your immediate financial business requirement like daily capital needs.
- Business loans can also help in tax benefits for the company.
- You don’t have to put anything as collateral or need a guarantee for a business loan up to Rs. 75 lakh.
- Banks offer customized repayment schemes for business loans in Mumbai. You can repay the business loan Daily, Weekly or fortnightly.
- You don’t need to show Income Tax Return for loan amounts up to Rs. 10 lakh.
- Business loan in Mumbai offers you lower interest rates when compared to Personal Loans.
- You can avail a Business loan in Mumbai from Rs.50,000 onward.
- With minimal paperwork and flexible repayment options, more and more business owners in Mumbai are leaning on business loans to fund their business needs.
What are the different types of Business Loans in Mumbai?
There are many types of businesses in Mumbai that require various types of loans to survive in the market. To suffice with all their business needs, Banks and NBFCs have come up with various types of business loans. Some of these are mentioned below:
Business loans for self employed professionals
This is a type of unsecured loan which is given to self-employed professionals in Mumbai. The loan amount varies from Rs. 25,000 to Rs. 75 lakh. The amount depends on the applicant's financial status and history. Self-employed professionals include CA, CS, doctor, engineer, architect, trader, commission agent, contractor etc.
Business loan to finance equipment
Almost all types of businesses in Mumbai need specific machinery or equipments for smooth functioning. Many times these equipments are higher in price. Thus businessmen opt for this type of loan to buy such equipments and pay it off with profits which will come from the use of these equipments or by putting them out on lease later.
Business loan to finance a project
This type of loan is given for a long term specific business project. The company has to present a project assessment report on which the loan is granted.
Business loan for working capital
Even in an ongoing business, businessmen require ample amount of funds to sustain and fund for their daily operations. These loans help them to be sustainable soon and it can be paid off once the business starts to grow. This type of loan comes handy in a situation when the business earnings are not adequate.
What are the Eligibility Criteria to get a Business Loan in Mumbai?
Banks and NBFCs in Mumbai offer business loan to borrowers who fulfill their designed eligibility. The eligibility criteria changes from bank to bank and the profile of the borrower. But there are some commonalities which you have to follow or acquire to get a business loan in Mumbai from any bank or NBFC. Banks give business loan in Mumbai by dividing their customer's profession and their income history. The common and generic factors are listed below:
Banks and NBFCs have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories:
Self Employed Professionals (SEP): Doctors, CA, CS, architects, engineer etc.
Self Employed Non Professionals (SENP): Trader, commission agent, contractor etc.
Also, if you are applying as a company, you can avail loan by applying under following entities:
2. Limited Liability Partnerships
3. Private Limited Companies
Other important requirements to avail Business Loan:
1. The minimum turnover of your business should be Rs. 60,00,000. The turnover should be in positive track.
2. You should have minimum 3 years of experience in current business and 5 years of experience in overall business industry.
3. Your business must be making profit for last 2 years.
4. The age of the applicant should be minimum 25 years and a maximum of 65 years.
5. You should have paid Income Tax Returns of your business for past 2 years.
6. The borrowers should have a strong credit history. They should have a credit report ready for bank reviewing.
What are the Documents Required to avail a Business Loan?
- 1. Neatly signed and filled loan against property application form.
- 2. Passport-size photographs.
- 3. Identity and signature proof – Passport, PAN card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
- 4. Address Proof – Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
- 5. Age Proof – Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy.
- 6. PAN Card for Company/Firm/Individual.
- 7. Copy of details of all existing loans.
- 8. Bank statements of last 6 months from application date.
- 9. Business proof (registration of business).
- 10. Copy of ITR/Assessment Orders of 3 years.
- 11. Copy of challans proving that Advance Income Tax has been paid.
- 12. Balance sheet and Profit & Loss details of business from last 2 years. These details should be certified by CA.
- 13. Proof of continuation which will include ITR, trade license, establishment and sales tax certificate.
Which Banks and NBFCs Provide Business Loan in Mumbai?
There are many well established Banks and NBFCs in Mumbai that offer the best Business loans with easy terms. Following is a list of Business loan interest rates that are being offered by various Banks and NBFCs in Mumbai:
|15.50% onwards||ICICI Bank Ltd.||12.90% onwards|
|Kotak Mahindra Bank||15.5% onwards||Edelweiss Retail Finance Limited||18.25% onwards|
|IndusInd Bank Ltd.||18% to onwards||Axis Bank Ltd.||14.25% onwards|
|Bajaj Finance Ltd.||16% onwards||IntelleCash Microfinance Pvt. Ltd.||18% onwards|
|Capital First Ltd.||12% onwards||IIFL (India Infoline Finance Ltd.)||18% onwards|
|Capital Float||10% onwards||Lending Kraft||18% onwards|
|Magma Fincorp Ltd.||17.50% onwards||DHFL||17% onwards|
|Clix Capital||18% onwards||Yes Bank||13% onwards|
|Tata Capital Financial Services Ltd.||18% onwards||NeoGrowth Credit Pvt. Ltd.||16% onwards|
|Ratnakar Bank Ltd.||10.65% onwards||Standard Chartered Bank||16.5% onwards|
|Aditya Birla Finance Ltd.||18.5% onwards||Shriram City Union Finance Ltd.||11.49% onwards|
|Equitas Small Bank||22% onwards||Essel Finance||17% onwards|
|IDFC Bank Ltd.||18% onwards||Fullerton India Credit Co. Ltd.||22% onwards|
|HDB Financial Services Ltd.||18% onwards||InCred||18% onwards|
Why Choose Richi Loans & Financial Services To Apply For Business Loan?
Richi Loans & Finacial Services is India's leading financial distributor. Our team has experienced individuals that pledge to offer solutions to all your loan needs. Borrowers can apply for a business loan with our latest online application process. You can choose from a plethora of Banks and NBFCs on our website for your loan. We help you borrow right.
Hassle free process
We have developed an efficient, smooth and easy process for our customers so they can apply for a business loan easily. Our easy to use online procedure allows customers to upload documents quickly. Our highly proficient Loan Calculator also guides the customers so they can experience a hassle free process.
Compare your loan options
You can compare interest rates, offers and services on our online portal. This will guide you to make the right choice and choose the right lender for your loan as per your budget.
Richi Loans & Finance Services understands the value of your documents and keeping them safe and secure. Hence be rest assured as your loan applications are processed electronically with complete privacy and transparency.
Benefits of applying with us
We value our consumers and are always on our toes to give them benefits of our expertise. Applying for a business loan with us, gives you a chance to avail the best offers and deals from our partner Banks and NBFCs.
Free expert guidance and advice
Our financial experts are always ready to give you the perfect advice. These highly trained professionals in finance know the back and forth of the industry. Our dedicated team of experts will help you at any given time, without charging a dime.
How to Apply For a Business Loan on Richi Loans & Financial Services in Mumbai?
Applying for a business on Richi Loans & Financial Services involves few easy steps:
- Step 1: Go to the ‘Business Loan in mumbai’ page on our website and click on ‘Apply Now’ box.
- Step 2: Fill out the initial personal and financial information. Once completed, our loan calculator checks your eligibility with its highly efficient algorithm.
- Step 3: Our loan calculator presents you a list of Banks and NBFCs most suitable for you as per your eligibility criteria. The list will include the name of the financial institutions, interest rates, required document list etc.
- Step 4: From the given list, you can choose the financial institute of your choice. You can start filling up the form and upload the required documents. Here, if needed, you can call or mail our experts for advice. The contact details are given on our website.
- Step 5: Your application will be sent electronically to the bank you selected. You will be informed about the status of your application via SMS, email or you can track it via website too.
Business Loan In Mumbai
Mumbai with a population over 18 million is considered to be the finance capital of India. Mumbai is host to almost every type of industries. Be it Banking, Finance, IT, entertainment industry, food & cutlery, wedding planning, medicine & hospitals, transport, construction etc.
Business Loan Interest Rate
Business loan is taken by businessmen or entrepreneurs to meet with their business related needs. Business loan is an unsecured type of loan and the funds from this loan are used for business purposes only.
Business Loan In Mumbai
Small businesses in India are considered as the lifeline of the business industry. There are multiple micro, small and medium level businesses working towards making profit in India. To be successful, you need to put in 100% efforts every single day.
Frequently Asked Questions
You pay the loan via EMI i.e. equated monthly installments.
Yes. You need to either have an existing bank account or open a bank account in order to service your business loan.