All about business loans
To start the business, you will need a big investment and then regular flow of money to keep it growing.
Many people start their business with some loan taken from their family or friends. These are easy but limited loans that can help in starting the business. However, soon you will need more money and then you will have to go to lenders like banks or other lending institutes. You can get loans against your asset like home. However, you must be very specific when you go for business loans.
Let us tell you about two types of business loans
The professional loans are for individuals who are self employed like a doctor. Different banks have different offers for the professional loan. The amount of loan and the required security varies from bank to bank. You have to present the complete business plan and personal financial statements to the bank in order to apply for the loan. You must also bring the proof of ownership. Your tax return references are to be submitted too. Loanpayment period and condition varies from bank to bank, however there are some common condition that all banks apply according to regulatory requirements.
Trade loans are given by the banks to the businessmen. Some banks even grant you a trade loan up to Rs. 35 lakhs. The amount of loan depends on the factors like the size of the business and the loan period. You have to submit proof for two year’s existence of the business. You also need to present complete financial statements to the bank.