A business loan allows business to initiate their foothold or expand their operations. It can be used in number of ways to give your business the much-needed boost. Before making the plunge, let’s look at the types of business loan, to help you make an informed decision.
Types of business loan
Working Capital Loan
This is one of the most sought-after loans. Most leading NBFCs and financial institutions offer this loan to help businesses take care of their short-term financial needs. You can avail a loan amount up to Rs. 30 lakh. Businesses do not have to pledge any collateral for this loan. It helps to maintain a healthy flow of cash to sustain all business needs.
To install, upgrade or purchase latest plant machinery and equipment to help you maximize production and serve more clients and orders. This loan, too, can be obtained to a maximum of Rs. 30 lakh.
SME and MSME Loan
This is for the growing needs of micro, small and medium size businesses. It requires minimum paperwork and provides quick and easy credit to businesses.
Loan for women entrepreneurs
To support the growing needs of women entrepreneurs these loans can be availed. They provide tailor-made and pre-approved offers to suit diverse business portfolio.
Purpose of a business loan
A business loan can be availed to increase cash flow of your business, lease bigger office premises, office renovation, purchase, lease, repair equipment, stock up inventory, upgrade to innovative technology, hire talent pool, business expansion to existing and new location, scale up business operations to take on bigger business challenges, and much more.