The Prime Minister MUDRA loan Yojana scheme launched in April 2015 sanctioned ₹ 5.71 lakh crores of credit till December 2017. The scheme helps small business owners get loans from lending institutions ranging from ₹ 50,000 to ₹ 10 lakh to either start or expand their enterprise.

Getting a business loan is often necessary for those in the initial stages of starting their own firm and in need of capital and to cover the day to day expenses of running an enterprise once it takes off. This may include inventory and payroll management as well as upgrading technology or machinery. However, you need to keep a few things in mind before applying for a business loan. Here are a few pointers to help you be prepared for your loan application:

1. Be clear on the reason: A lender be it a bank or a non-banking financial company who you approach for credit, would be keen to understand the motive behind procuring a loan. So it is important that you can provide them a valid reason for your business loan application.  This could range from requiring funds for starting the business, managing daily expenditure, expanding the company further or simply as a financial cushion for your enterprise.
2. Decide the loan type that suits you: Once you know why you are applying for a business loan, you can then look at the kind of loans available to you. A business might find it difficult to get a loan in the first year of operation since regular cash flow reassures lenders of loan repayment. In such a case, start-ups can look at crowdfunding, help from family and friends, personal loans, business credit cards or even microloans from non-profit lending institutions. Term loans, business line of credit, invoice and equipment financing are suitable for those running a business for more than a year.
3. Choosing the right lender: Once you have zeroed upon the type of business loan right for you, the next step is to decide on the lending institution from the plethora of choices in the market.  Business loans available on Finserv MARKETS come with quick online processing and approval for funding upto ₹30 lakhs. Both entrepreneurs and micro, small and medium enterprises can avail these customized loans with minimal documentation. If you require instant funding with no collateral at attractive interest rates such online loans should be your first choice.
4. Finding your eligibility: Knowing whether or not you are eligible for a business loan application varies from one financial institution to another. A few basic requirements include the duration of the business (ideally 3 years or more), revenue or profits generated annually and details on cash flow and other financials. These ensure the lender that you can comfortably repay the business loan within the stipulated time period and will not default or delay the payment. Apart from this your age and experience of running the business will also be taken into account.
5. Collect the necessary documents: Now that you are sure of your eligibility for the business loan application with a lender of your choice, it is time to put together the documentation in place. These include identity proofs such as Aadhar or Passport or driving licence, PAN, income tax returns filed for the current and previous years, financial and legal business documents among others.

This step by step guide will come in handy while applying for business loans and make it an informed and smooth process. Did you know that business loans available on Finserv MARKETS are approved in just 3 minutes? Moreover, you can also enjoy the flexibility of loan repayment from 12 months to 5 years as per your preference.

These tailor made loans also come with customized insurance plans and a free financial fitness report to help you stay informed on your liabilities as well as help you improve your credit score, should you require funding in the future.

All you need to do is log on to Finserv MARKETS, fill a form specifying your personal details as well as loan amount and tenure of repayment. Once the uploaded documents are verified and the loan is approved, the amount requested by you is transferred to your bank account within a day! So give wings to your business dreams and take it to new heights with business and MSME loans available on Finserv MARKETS today!

In association with FinServ Markets