Some tips to get quick Business Loan in Delhi

Delhi is the national capital of India and is well-known for its culture of entrepreneurship and business. Over the years, many small, medium and large businesses have been established in and around the city which in turn has lead to growing demand for funds. Every business requires money to survive. Whether you're putting resources into a new business or expanding your existing business, you require cash to fulfill all your needs. In such circumstances, your most logical option is to get a business loan.

Getting a bank loan for your business in the national capital is quite difficult, but the process can be simplified if you follow a few basic steps:

1. Improve your credit score: A poor credit score is one of the major reasons for your business loan getting rejected. People with lower credit scores usually have a history of defaulting on loans or credit card bills repayments. Thus, always ensure to repay your dues on time to have a good credit score. Take out your credit reports at regular intervals and if any error, report it to the bureaus or lenders for rectifications.

2. Prepare a good business plan: A good business plan is essential before applying for a business loan with your lender. Your business plan should clearly show your project's objective, marketing strategies, revenue generation plan, etc. Make the lender believe that your business is low on risk and you can successfully repay the amount with timely installments.

3. Paperwork: Make sure you have all the required documents before applying for the business loan. Documents required by lenders include entity’s proof, last few years’ income tax returns, audit reports, KYC documents, bank statements, etc.

4. Avoid multiple loan applications: Whenever you make a loan application, the lenders ask for your credit report from the credit bureaus. With each credit enquiry, your credit score reduces. If several queries are raised within a short period of time, you are considered as 'credit hungry', which reduces your chances of banks approving the loan application.Customers are also unaware that any loan that is rejected by a bank, has a less chance of getting an approval by other banks as well.

5. Business existence: Generally, banks give loan to businesses with minimum business existence of 3 years. For new businesses, start-ups and loss making businesses, chances of getting an unsecured business loan is low. In this case, you should explore options of secured business loans.

6. Apply for a loan amount based on your repayment capacity: Determine the loan amount that you can easily repay in future. If you apply for a loan amount which is higher than your eligibility, it can lead to rejection of your loan application. So, make sure you choose the correct loan amount that you can comfortably repay in future.

Banks and NBFCs offering business loans in Delhi

The banking sector is growing tremendously in Delhi. Over the years, it has become a hub for banking and financial industries. Due to the rapid increase in this sector, access to funds for investment and expansion of business has become quite easy. There are several banks and NBFCs in Delhi which offer business loans at a lower rate of interest. You can compare interest rates and processing fee of various lenders before applying for the loan. Many lenders in Delhi offer attractive discounts as well on the business loans. We have listed some of the top banks to procure a business loan in Delhi:

• HDFC Bank

• ICICI Bank

• Bajaj Finserv

• Citibank

• IIFL

Conclusion: So, if you are planning to take a business loan in Delhi, ensure that you have a good business plan. Also, make sure you have all the required documents along with a good credit history for easy approval of the loan.