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Running a business means you are an entrepreneur. The business helps you put in a dedicated effort and earn an income. To help grow the productivity and profits, you may be required to invest more in terms of money, time and effort. For the first part, money or capital, you can turn to a business loan from financial lenders. Since businesses require different types of loans, lenders offer different types of loans.
Some of them are discussed below:
- Working Capital Loans: When you make a startup, you need to ensure you have the budget to run your business for at least six months without thinking of earning a profit. For that, you have to take care of your bills, raw materials and such. The working capital loan helps you to take care of your everyday expenses. The business loan is extended to established businesses also.
- Machinery Loans: For productivity, you need to have machines which are usually imported from other countries or states. You have to pay a large sum to buy these machines, and you may not have enough capital. Banks help you get a loan up to 30lakh, and NBFCs help you avail the loan without any collateral security.
- SME and MSME loans: The Government has taken the initiative to help the small scale business by initiating micro-financing. This helps the borrower to avail loan at a much quicker speed, and the rate of interest is rather low than others.
- The process of business loan is available online. You can apply for a pre-approved business loan – remember, the interest rate will be dependent on various factors, and you must calculate the EMI before agreeing to a loan amount and terms and conditions.
