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10 Things To Ask Yourself Before You Apply For A Business Loan In Chennai

Doing a business without sufficient capital is nearly impossible. Capital is the core investment for any business be it small or large. You can start running your business with the help of small business loans. Only with a steady cash flow maybe you are able to run your business steadily taking your business to newer heights. This is possible only if you apply for a business loan in Chennai. Before applying for a financial loan for your business, you should carefully consider the following things.

Ask yourself if you are eligible to get business loan

Before applying for a business loan in Chennai, you need to assess if you are eligible to apply for a business loan. For this, you need to fulfill the following eligibility criteria

  • Age should be above 25 years and below 65 years
  • CIBIL score should be above 700
  • Should have filed IT return
  • The business should be running successfully for the past one year to apply for a business loan
  • The candidate should possess the necessary documentation for proof

Determine the amount of loan required

You should have a clear estimation of how much amount you need. You need to be prepared for the unexpended expenses. Hence, plan the loan amount accordingly.

Select the choice of loan

There are various loan options available for various organizations. The borrower can determine the type of loan for business based on the interest rate. It can be either

  • Small business loan
  • Unsecured business loan

Choice of lender

Choice of lender is also mandatory. The lender should be chosen based on

  • The interest rate they offer
  • Check if they are authorized to provide a loan
  • Check if they are reliable and flexible
  • See if they provide the best possible deal

Repayment strategy

You should fix your loan amount based on the repayment strategy and scrutinize your debt and revenue ratio accordingly.

Why RG enterprises ?

RG enterprises provides the best interest rate within the tenure.

Make sure you have a strong business plan

The business plan should be built in such a way that the plan should be able to generate revenue in a shorter period of time and for a longer time.

Make sure you have the required documents to avail business loan

  • Passport size photo
  • Address proof – passport, any regular bills
  • ID proof – Aadhar card / pan card / voter ID
  • Age proof – Aadhar card/driving license
  • IT return filed for the past 3 years
  • Bank statement containing the financial transaction

Look into your credit history

Ensure your credit history is spotless before you apply for an unsecured business loan. It is because credit history plays a major role in determining if you are eligible for applying for a business loan or not. You should pay more attention to improving the credit history if you want to avail business loan at a low-interest rate. For this, you should identify ways to improve your credit history.

Is it possible for you to provide collateral?

If you could provide collateral or security, you can get more loan amount. This is just to make sure that if you are unable to pay the loan amount, they could seize your means of security to recoup their funds.

Finally,

It is always advisable to seek advice from experts before actually, you chose to apply for a business loan in Chennai.