With an annual GDP growth of 12.8%, Haryana is one of the economically fastest-growing states in India. Faridabad, one of the major cities in Haryana, has contributed to this growth. Small and medium enterprises like pottery, gold, hand-loom, etc. are booming in recent years in this city.
To help these industries grow, several financial institutions and NBFCs provide business loan in Faridabad. With the advancement of technology, the process of availing such loans has become fast and hassle-free, making it the best source of finance for your business.
These loans are collateral-free and provide a substantial amount within 24 hours. Given below are some of the reasons why business loans work as fuel for your company.
1- Maintains working capital
The amount you invest in your business can take time to ensure returns. Your customers might make late payments, or your products may induce sales at a slower rate, thus reducing your cash flow or working capital. A business loan will help you maintain your cash flow and assist in making necessary investments in production and operation. Remember that working capital can make or break your small business.
2- Aids in emergencies
Such business loans in Faridabad are approved almost instantly, which can help you in dealing with sudden financial crunches and also work as a source of raising emergency funds.
3- Assists in optimising your working capital
Working capital helps your business stay agile, and these loans can help you maintain positive working capital.
4- Helps in upgrading your firm
These loans can work as a source of finance while you plan to improve or expand your firm. You can choose to expand your firm to another location or update your infrastructure and machines.
5- Helps in clearing existing debt
You can also use such business loan in Faridabad to pay the outstanding amount of any existing debts and reduce your financial burden.
6- Low-interest rate
These credits come with attractive business loan interest rates, which makes the EMIs affordable, thus reducing the strain on your pocket. Such low-interest rates are one of the ways in which business loan is a boon.
7- Flexible eligibility criteria
The eligibility criteria that you need to meet to avail such loans are discussed below.
i). Age- Applicants are required to be within the age bracket of 25 to 55 years.
ii). Business vintage- Your firm should not be below three years old, and you should have filed income tax for at least a year.
iii). CIBIL Score- You should maintain a CIBIL score of 750 and above.
8- Minimal documentation process
To avail a business loan in Faridabad, you will have to furnish some papers as discussed below.
i). KYC Documents- Includes Aadhaar card, PAN card, voter ID, passport, and driving license
ii). Address Proof- Utility bills such as electricity bill, telephone bill, water bill, etc.
iii). Business existence proof- Includes SEBI registration certificate, GST registration certificate, etc.
iv). Financial documents- Consists of profit and loss statements, bank account statements, income tax returns, etc.
In addition to the above, your lender may ask you to provide other documents as per their policy.
9- Easy application process
The application process for such loans is easy and can be done online. To apply:
- Visit the official website of your lender.
- Fill the application form with the required financial and personal details.
- Submit all the required business loan documents.
- A representative of your lender will visit you to collect the papers mentioned above.
- After your lender verifies your documents, your loan will be disbursed.
These loans also help you raise funds for marketing and advertising for your business and products. However, to enjoy the benefits of these loans and run your firm without setbacks, refrain from defaulting on payments.