All About Loans for Existing and New Businesses
What is a Business Loan?
If you own a business, you will need money to run it smoothly. When you run out of money, you might face difficulties to run your business. Business loans are sought for the purpose of expansion and growth of a business.Business loans are provided by various banks to business people for their short or long term financial needs. For any business whether in initial stage or in growth phase, capital is required to keep up the momentum, acquiring a right kind of office space is essential for the success of the business. And to fulfill these purposes various private and public sector banks provide business loans to facilitate individuals realize their dreams.
Purpose of a Business Loan?
Businesses raise their capital by inviting shares and debentures or simply borrowing from banks and other lending institutions. And the purpose of doing so could be different –
- Expansion of an existing business
- Compensating a deficit in the operating capital
- Designing a new concept or product in a new business
- Starting a new business
- Purchasing Raw Material
- Purchasing machinery and Equipments
- Business startups
- Software Companies fund requirement
- Hiring new professionals
The eligibility criteria of obtaining a Business Loan ?
Business loans are provided to all kinds of enterprises, be it a sole proprietorship, a partnership or a private limited company. Although the income requirements of the concerned differs from bank to bank , but normally net income of the concern should be more than Rs. 150,000 per annum for business loan up to Rs. 15 lakh and over Rs.3 lakh for business loan above Rs. 15 lakh. A maximum of two incomes of the partners or directors holding a minimum of 25% stake each can be clubbed to the income of the concern.
Leading Business Loan Providers :
- Bank of Baroda
- Barclays Bank
- Canara Bank
- ICICI Bank
- ING Vysya Bank
- Kotak Mahindra Bank
- Reliance Capital
- Corporation Bank
- Tamilnad Mercantile Bank
- Deutsche Bank
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