Mumbai, being the financial and commercial capital of India, has an abundance of business loan vendors. Therefore, for someone looking for a business loan in Mumbai, making the right choice can be an arduous task. However, the right solution can be obtained by following these 5 pointers.
1. Self-Introspection: Before you start doing rounds of banks and NBFCs, a bit of self-introspection would be sensible. There are some basic but crucial factors that need to be perfect from your end to maximize the chances of loan approval: CIBIL score, debt history, debt-burden ratio etc. can drastically lower down your creditworthiness if not managed properly. On the other hand, these factors can also amplify your credit eligibility if you administer them well.
2. Achieving some clarity: A bit of clarity while preparing your loan application makes the entire process easier. Knowing certain things like how much your business would be needed, how much your finances allow you to borrow, and the exact time your business will need to repay the loan. You can get some clarity on these questions, or perhaps you can prepare a budget to simplify things.
3. Research and Comparison: After achieving the essential clarity, commence the research process. Find out the different lenders offering business loan in Mumbai and make a list. Further, shortlist candidates depending on the interest rate and maximum amount they are offering. You can even choose totally different evaluating criterions depending on your requirement.
4. The dilemma: secured business loan or unsecured business loan? Every business loan applicant comes across this common question, whether to take a secured business loan or go for the unsecured business loan. You’ll face the same dilemma once you initiate the application process and you’ll have to take every related aspect into account while making a decision.
5. Time taken in approval: Some financial institutions mainly the banks can take an entire month for approval. On the other hand, there are financial institutions who have an in-house team for verification and the overall approval takes not more than 2-3 days.
Bottom line: The obligation to submit a collateral often becomes an issue for applicants having inadequate assets. Hence, evaluate the lender and the business loan scheme carefully to reach upon a conducive solution.
Also Read : How To Get A Business Loan In Mumbai
