What is Business loan ?
Business needs funds to start or even to carry on its existing operations but the question arises from where can one get these funds. A business loan may be an answer to this question. Thus, one can approach a reputed financial institution and opt for a business loan according to one’s need and thus fulfill his /her dream of starting a business or even financing, expanding his/her existing business. These loans can be secured as well as unsecured. Secured business loans generally have lower interest rates. Apart from a business loan a financial institution may have other kind of products like overdraft facilities to take care of the business needs of the individuals.
Who is Eligible for business loan ?
Any person who is running a legitimate business with good earnings can go for a business loan. Banks have certain criteria to validate on how much and whom to give. This is on the basis on.
Type of the business- Ie Proprietorship, Partnership, Pvt Ltd or Public Ltd.
- Turnover of the business.
- Profit of the business.
- Cash flow of the business.
- Track record and type of business.