Whatsapp Chat

Types Of Business Loans In India – Pick The Best For You

In this ever-changing environment, business financing in Chennai seems to be a difficult process at times. In order to meet the changing needs of these enterprises, there are various types of loans offered. The classification of loans is done mainly based on the interest rate calculated. The loan for business is classified according to business needs such as – machinery loan, term loan, working capital loan, start-up business loans, and many more. Availing small business loans helps to

  • Increase the cash flow of the business
  • Expand the business
  • Upgrade to the latest technology
  • Improve the business operations
  • Renovating the office environment and many more

Private finances such as RG enterprises can customize the business loans in Chennai according to the business needs. Here are some of the common small business loans offered for entrepreneurs.

Start-up business loan

A start-up loan is offered for budding entrepreneurs. These persons lack business experience and do not have a great credit history. Hence, the personal credit score of these individuals is evaluated to avail of the loan. The applicant is expected to submit proof for registration and the existence of the business while applying for business loans in Chennai.

Term loan

This is considered the most common type of business loan offered. A term loan can be either secured or unsecured. A term loan is availed mainly to satisfy the capital investment needs.

Working capital loan

If you are struggling to operate your business on a daily basis, then you can look for a working capital loan for your business. The working capital loan helps to deal with any pitfalls in the cash flow at times when the business is flourishing. This kind of loan is very much essential for an organization that prevents the business from stopping due to financial blockage.

Machinery loan

At times when you have to process bulk orders and if you need to upgrade to the latest machinery, you can avail machinery loan. These kinds of machinery or equipment loans are mainly availed by machinery businesses. When compared to term loans, the interest rate for machinery loans is comparatively lower.

Business loan for women entrepreneurs

In order to extend support to women entrepreneurs, women can also avail business financing in Chennai. RG enterprises have taken the initiative to support women entrepreneurs in Chennai by providing business loans to them. Loans for them can be processed at a faster rate compared to others.

SME loans

This kind of loan can be availed against any business property. The loan can be obtained against any residential property or commercial property. Based on the market value, you can avail up to 70% of the property value.

Invoice financing

When there is a time lag between the time invoice is raise and payment is received, invoice financing can be availed. One can claim up to 80% of the invoice amount.

Overdraft

When you want to claim a loan against a fixed deposit, you can suggest having an overdraft facility. The overdraft limit will be determined based on the borrower’s credit history by the lender.

Cash advance

There are financial institutions that provide an advance on the capital amount based on credit or daily refund. For this, you need to make sure that there is enough cash flow with your business to be able to repay the loan amount. You can repay more amount when your business starts flourishing.

Finally

According to the requirement and business profile, one can select the type of loan for business. You can select the most suitable one for your business based on the above information