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What is a Business Loan?
A business loan can be availed by a business man with the intention of using it for expanding an existing business and infuses capital. This is an unsecured loan wherein no collateral is involved.
Who can avail a Business Loan? Business loans can be availed by self- employed individuals as well as firms and companies. Many Traders like retailers, wholesalers, Manufacturers in industries like chemicals, automobiles and pharmaceuticals, Service providers like doctors, chartered accountants and engineers also look for a business loan.
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Term
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1. Types of Clients : a) Self Employed (Professional) b) Self Employed (Business)
2. Documents Required :
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• In case of Proprietor : PAN Card and Aadhar Card
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What is Personal Loan? A personal loan is a short term unsecured loan to meet current financial needs related to vacations, unexpected medical expenses, festival celebrations, renovation or any other financial matters.
2. Documents Required :
a) Salaried Individual :
• Latest 3 Months Salary Slips
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• Form no.16 or ITR
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• Last 6 months Bank Statement
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• Business Stability Proof (Shop & establishment certificate / Trade license certificate / Factory registration certificate)
• KYC (PAN Card and Aadhar Card)
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• Last 3 years Income Tax Returns along with the computation of Income, CA Certified/Audited Balance Sheet and Profit & Loss Account with all Schedules/Annexures
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• Minimum Net Monthly Salary : `25,000
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• Rate of Interest varies as per bank norms
• Minimum CIBIL Score Required : 650
• No EMI Bounces within 6 months
• Repayment period : 12 months to 60 months
• Loan Amount : 1,00,000 to 25,00,000
• Age Limit : 21 years to 60 years
b) If Self Employed (Professional) :
• Minimum net profit per annum : `2,50,000
• Profession Type : Doctor, Engineers, CA’s Etc.
• Rate of Interest varies as per bank norms
• Minimum CIBIL Score Required : 650
• No EMI Bounces within 6 months
• Repayment period : 12 months to 60 months
• Loan Amount : 1,00,000 to 12,00,000
• Age Limit : 21 years to 60 years
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आयुष्मान भारत योजना के बारे में
(1) आयुष्मान भारत योजना
भारत शासन द्वारा केन्द्रीय वित्त बजट 2018 में आयुष्मान भारत की घोषणा की गई है, जिसके दो मुख्य स्तंभ हैं, देश में एक लाख हेल्थ एण्ड वेलनेस सेंटर्स स्थापित करना एवं 10 करोड़ परिवारों को रूपये 5.00 लाख प्रतिवर्ष के स्वास्थ्य बीमा कवच से जोड़ना ।
आयुष्मान भारत योजना के मुख्य पहलू निम्नानुसार हैं:-
- योजना में सामाजिक, आर्थिक जाति जनगणना(SECC) में चिन्हित D-1 से D-7(D-6 को छोड़कर) वंचित श्रेणी के ग्रामीण परिवार सम्मिलित होंगे एवं चिन्हित व्यवसाय-आधारित शहरी परिवार सम्मिलित रहेंगे। साथ ही कुछ श्रेणियों के परिवार स्वत: ही समावेशित रहेंगे।
- आयुष्मान भारत मिशन के अंतर्गत प्रधानमंत्री राष्ट्रीय स्वास्थ्य सुरक्षा मिशन के तहत् सामाजिक आर्थिक जातिगत गणना (SECC) में चिन्हाकिंत लाभार्थियों के अतिरिक्त, म.प्र. शासन द्वारा यह निर्णय लिया गया है कि खाद्य सुरक्षा में प्रदाय पात्रता पर्ची एवं असंगठित क्षेत्र के मजदूरों को भी शामिल किया जावे। आगामी समय में अन्य योजनाओं के हितग्राहियों या समाज के अन्य वर्गों को भी इस योजना में शामिल किये जाने पर विचार किया जावेगा।
आयुष्मान भारत योजना के लाभार्थी-
> SECC के चिह्नित परिवार
स्वत: (Automatic) समावेशित परिवार | 3,96,787 |
क्र.1 से क्र. 7 (क्र. 6 को छोड़कर) वंचित श्रेणी के ग्रामीण परिवार | 63,94,323 |
Occupation आधारित शहरी परिवार | 15,90,672 |
कुल SECC परिवारों की संख्या | 83,81,782 |
> NFSA के परिवार
> संबल पात्र परिवार
> कुल संभावित पात्र परिवार – 1.08 करोड़ परिवार
- सामाजिक आर्थिक जातिगत गणना (SECC) में चिन्हाकिंत लाभार्थियों के उपचार हेतु भारत सरकार द्वारा 60 प्रतिशत तथा राज्य शासन द्वारा 40 प्रतिशत व्ययभार वहन किया जावेगा। म.प्र.शासन द्वारा उक्त योजना में जोड़े जा रहे लाभार्थियों के उपचार पर व्यय होने वाली 100 प्रतिशत राशि वहन की जावेगी।
(2) दीन दयाल स्वास्थ्य सुरक्षा परिषद (DDSSP) “निरामयम”
आयुष्मान भारत मिशन योजना को प्रदेश में लागू करने हेतु मध्यप्रदेश सोसायटी रजिस्ट्रीकरण अधिनियम 1973 के अंतर्गत,''दीन दयाल स्वास्थ्य सुरक्षा परिषद (Deen Dayal Swasthya Suraksha Parishad)''का पंजीयन दिनांक 07 जुलाई 2018 को किया गया है,जिसका पंजीयन क्रमांक 01/01/01/34127/18 है । यह परिषद स्टेट हेल्थ एजेंसी के रूप में कार्य कर रही है,जिसके अंतर्गत इस योजना का सम्पूर्ण क्रियान्वयन करायेगा।
''दीन दयाल स्वास्थ्य सुरक्षा परिषद (DDSSP) निरामयम'' के वर्तमान में संचालन हेतु ''आई.ई.सी. ब्यूरो'', जय प्रकाश चिकित्सालय परिसर, भोपाल में कार्य प्रारंभ कर दिया गया है ।
''दीन दयाल स्वास्थ्य सुरक्षा परिषद (Deen Dayal Swasthya Suraksha Parishad)''में निम्नानुसार 3 काउंसिल का गठन किया गया है:-
1. सलाहकार परिषद-(Advisory Council)
2. गर्वनिंग परिषद(GoverningCounsil)
कार्यकारी परिषद (Executive Counsil)
(3) बैंक खाता
योजना के संचालन हेतु, खुली प्रतिस्पर्धा के माध्यम से बैंक का चयन करए परिषद का बचत बैंक खाता, ICICI Bank में खोला गया है । इस बैंक खाते में योजना का केन्द्रांश एवं राज्यांश जमा होगा । केन्द्रांश की प्राप्ति हेतु उक्त बचत बैंक खाते को पीएफएमएस से लिंक किया गया है । उक्त बचत खाते में योजना के संचालन हेतु समस्त वांछित आई.टी. साल्यूशन्स बैंक द्वारा स्वयं के व्यय पर उपलब्ध कराये जावेंगे ।
(4) ट्रांजेक्शन एडवाईजरी टीम (TAT) की नियुक्ति-
योजना के क्रियान्यवन हेतु निक्सी (NICSI) द्वारा अनुमोदित दरों पर केपीएमजी से 05 सलाहकार लिये गए है, जो कि हेल्थ केयर एक्सपर्ट, इंश्योरेंस एक्सपर्ट(हेल्थ सेक्टर) आई.टी. सिस्टम एनालिस्ट, एक्सपर्ट इन पब्लिक प्रोक्योरमेंट तथा एक्सपर्ट इन कान्ट्रेक्ट मैनेंजमैंट है ।
(5) इम्प्लीमेंट सपोर्ट ऐजेंसी (ISA)
इम्प्लीमेंट सपोर्ट ऐजेंसी(ISA) की नियुक्ति हेतु दिनांक 15.08.2018 को ई-निविदा जारी की गई है
जिसके आधार पर पारदर्शिता अपनाकर विडाल हेल्थ इन्सुरेंसे कंपनी का चयन हुया है ।
प्रारंभिक रूप से एजेंसी की नियुक्ति 02 वर्ष के लिये होगी तत्पश्चात् कार्य आंकलन उपरांत इस अवधि को अधिकतम 01 वर्ष और बढ़ाया जा सकेगा। इम्प्लीमेंट सपोर्ट ऐजेंसी(ISA) द्वारा किये जा रहे कार्यों का अंकेक्षण(ऑडिट) किये जाने हेतु थर्ड पार्टी ऑडिटर (Third Party Auditor) की नियुक्ति आनलाईन निविदा प्रक्रिया अपनाकर पारदर्शीपूर्ण ढंग से की जावेगी ।
(6) जिला क्रियान्वयन इकाई (DIU)
आयुष्मान भारत के सफल क्रियान्वयन हेतु भारत शासन के निर्देशानुसार जिला क्रियान्वयन इकाई (DIU) का गठन निम्नानुसार किया गया है जिसमें पूर्व से कार्यरत अधिकारियों को अपने वर्तमान दायित्वों के साथ साथ DIU में उनके पदनामों के समक्ष उल्लेखित पदों के कर्तव्यों का भी निर्वाहन करेंगे ।
DIU जिसमें निम्न अधिकारी सम्मिलित होंगे:-
- जिला कलेक्टर - अध्यक्ष,
- जिला मलेरिया अधिकारी – जिला नोडल अधिकारी
- जिला कार्यक्रम प्रबंधक (NHM) - जिला कार्यक्रम समन्वयक
- जिला इ-गवर्नेंस मेनेजर - जिला संसूचना प्रणाली प्रबंधक
- जिला मीडिया अधिकारी - जन शिकायत निवारण प्रबंधक
- जिला कम्युनिटी मोबिलाईज़र - जिला कार्यक्रम सह-समन्वयक
(7) एम्पनेल्मेंट प्रक्रिया
संचालक अस्पताल प्रशासन की अध्यक्षता में पैनल स्वीकृति बोर्ड का गठन किया गया है । समस्त शासकीय चिकित्सालयों, शासकीय चिकित्सा महाविद्यालयों, निजी चिकित्सालयों, निजी चिकित्सा महाविद्यालयों आदि के इस योजना में इमपेनलमेंट/पंजीयन संबंधी कार्यवाही भारत सरकार के निर्देशों के अनुरूप आनलाईन संपादित आनलाईन संपादित किये जाने का कार्य किया जा रहा है एवं डी.पैनल प्रक्रिया का निर्धारण किया जा रहा है ।
प्रथम चरण में सभी जिला अस्पतालों और सरकारी मेडिकल कॉलेजों को स्वतरू एम्पनेल्ड समझा गया है ।
द्वितीय चरण में सामुदायिक स्वास्थ्य केन्द्रों (सी.एच.सी.) को योजना से संबद्ध किये जाने का लक्ष्य रखा गया है ।
तृतीय चरण में PHC को योजना से संबद्ध किये जाने का लक्ष्य रखा गया है ।
निजी अस्पतालों के लिए निम्न मापदंड भारत शासन द्वारा निर्धारित हैं-
एनएबीएच सम्बधता,
न्यूनतम 10 बिस्तर
नर्सिंग होम नियम 1972 का अनुपालन
सुपर स्पेशलिटी के लिए एनएचए द्वारा जारी सभी प्रासंगिक मानदंड
ट्रस्ट / एन.जी.ओ. के एम्पेनेल्मेंट शासन स्तर पर गठित समिति द्वारा निर्णय कर लिया जाएगा
(8) इलाज हेतु नियत पैकेज
इलाज पर अस्पताल मनमाने तरीके से वसूली न कर सकें और लागत नियंत्रण (Cost Control) रखा जा सके इसके लिए इलाज संबंधी Package Rate तय किए गए हैं। ये पैकेज रेट सरकार ने पहले ही तय कर दिये हैं । आयुष्मान भारत योजना के रेट में इलाज संबंधी सभी तरह के (दवाई, जांच, ट्रांसपोर्ट, इलाज पूर्व, इलाज पश्चात के खर्चे) व्यय शामिल होंगे, जिसमे 23 स्पेशिऐलिटीज़ के कुल 1350 पैकेजेसए शासकीय चिकित्सालय हेतु 472 आरक्षित पैकेजेस साथ ही अतिरिक्त पैकेज की सुविधा और 10 दिन का फॉलोअप भी शामिल हैं ।
(9) क्लेम का भुगतान
शासकीय एवं निजी चिकित्सायलय उपचार समाप्त होने के 10 दिवस के अंदर क्लेम समस्त आवश्यक अभिलेखों एवं जांच रिपोर्टों सहित इम्लीमेंट सपोर्ट ऐजेंसी (ISA) को प्रस्तुत करेंगे एवं इम्लीमेंट सपोर्ट ऐजेंसी द्वारा आनलाईन प्राप्त सभी क्लेम का 15 दिवस के अंदर परीक्षण किया जाकर अपनी अंतिम अनुशंसा सहित स्टेट हेल्थ् सोसायटी (SHA) अर्थात “दीन दयाल स्वाथ्य सुरक्षा परिषद-निरामयम” को प्रस्तुत करेगी। परिषद द्वारा 05 दिवस के अंदर संबंधित चिकित्सालयों को आनलाईन माध्यम से उनके बैंक खातों में क्लेम का भुगतान किया जावेगा। इस प्रकार क्ले्म संबंधी संपूर्ण प्रक्रिया 30 (तीस) दिवस में पूर्ण होगी ।
(10) हेल्प डेस्क
आयुष्मान भारत योजना के अंतर्गत राष्ट्रीय स्वास्थ्य संरक्षण मिशन (AB-NHPM) से संबंधित समस्त चिकित्सालयों में हेल्प डेस्क बनाया गया है जिससे कि योजना में शामिल लाभार्थी परिवारों को एक ही स्थान पर समस्त जानकारी प्राप्त हो सके एवं उन्हें उपचार प्राप्त करने में कोई कठिनाई नहीं हो ।
(11) योजना का लांच
आयुष्मान भारत योजना के अंतर्गत राष्ट्रीय स्वास्थ्य संरक्षण मिशन (AB-NHPM) को प्रथम चरण में प्रदेश के 08 जिलों तथा 02 मेडिकल कॉलेज में योजना का पायलट लॉन्च दिनांक 15.08.2018 को कर दिया गया है द्वितीय चरण में प्रदेश के 21 जिलों में 27.08.2018 से तथा शेष 22 जिलों तथा शेष शासकीय मेडिकल कॉलेजों में 10.09.2018 से योजना का पायलट लान्च किया गया। संपूर्ण प्रदेश में योजना का क्रियान्वयन दिनांक 23.09.2018 को प्रांरभ किया गया।
शनिवार, 14 मई 2022
गुरुवार, 28 अप्रैल 2022
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रविवार, 26 दिसंबर 2021
मंगलवार, 30 नवंबर 2021
Business Loan
Processing Fees 2-3%
Loan Tenure up to 36 months
Pre-closure Charges Nil**
Eligibility Criteria > ₹ 90,000 turn over for 3 Months
Loan Amount ₹ 50,000 – ₹ 2 crore
Installments Flexible Monthly / Bi-weekly
Eligibility Criteria for Business Loan
Lendingkart has kept the eligibility requirements to the bare essentials in order to process business loans faster. We do not require too many documents or unnecessary paperwork that can hold-up the loan approval process.
An established business that has been in operations for more than 6 months.
A minimum turnover of ₹ 90,000 or more in the 3 months preceding your loan application.
The business should not fall under blacklisted / excluded list for SBA finance.
The physical location of your enterprises should not be in the negative location list.
Trusts, NGOs and charitable institutions are not eligible for small business loans.
If you are not sure if your business falls under a restricted category or location, you can contact us to confirm your eligibility.
गुरुवार, 30 सितंबर 2021
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शुक्रवार, 24 सितंबर 2021
link your PAN with Aadhaar
Deadline for linking Aadhaar with PAN card extended till March 31, 2022
You can link your PAN with Aadhaar by following process:
a) Open the Income Tax e-filing portal - https://incometaxindiaefiling.gov.in/
b) Register on it (if not already done). Your PAN (Permanent Account Number) will be your user id.
c) Log in by entering the User ID, password and date of birth.
d) A pop up window will appear, prompting you to link your PAN with Aadhaar. If not, go to ‘Profile Settings’ on Menu bar and click on ‘Link Aadhaar’.
e) Details such as name date of birth and gender will already be mentioned as per the PAN details.
f) Verify the PAN details on screen with the ones mentioned on your Aadhaar. Pls. note that if there is a mismatch, you need to get the same corrected in either of the documents.
g) If the details match, enter your Aadhaar number and click on the “link now” button.
h) A pop-up message will inform you that your Aadhaar has been successfully linked to your PAN
i) You may also visit https://www.utiitsl.com/ OR https://www.egov-nsdl.co.in/ to link your PAN and Aadhaar.
रविवार, 19 सितंबर 2021
IQ Option
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सोमवार, 6 सितंबर 2021
Business Loan
Banking and NBFC finance still remain the mainstay of India’s small and medium enterprises. Business loan help your small business grow, allowing you to invest in infrastructure, operations, and plant and machinery. Moreover, business loans can also be a veritable medium of maintaining Business for critical business operations.
Customized business loans are a new category of business loans which are tailored to meet the specific needs of a new age business or startup. These loans offer your enterprise the opportunity to scale and give it the competitive edge necessary for success in today’s world.
What is a business loan?
A business loan is basically a borrowed amount of capital that is used for an investment in a new or existing business set up. Whether small or medium-sized enterprises (SMEs) or large businesses, it is absolutely important to understand how these loans work.
From the people involved, the formalities, benefits, to the risks, terms and conditions – all the aspects require your utmost attention before you proceed to take a loan. Proceed and learn about them below with us!
Features of Lendingkart Business Loan
Lendingkart offers customized business loans for small and medium businesses in India. Our loans are free from the bureaucratic red tape that often accompanies bank loans and have a very straightforward application, approval and disbursal process. We have designed a fast and efficient digital interface that minimizes human interaction and thus helps in speeding up the whole ‘taking a business loan’ process.
Get Business Loans up to ₹ 2 Crore
We offer business loans of ₹ 50,000 up to ₹ 2 Crore to eligible SMEs. Our wider loan window increases the chances of business loan approval and provides you the funds needed for growth and expansion of your venture.
Superfast Business Loan Processing
We have taken loan processing times to the next level through our Online Only loan application process. It allows us to by-pass a lot of manual work and provide same-day loan approvals.
Fast Turnaround Time and Disbursals
Lendingkart’s offers business loans faster than the 59 Minute Business Loan scheme. With our online business loan processing, you can get a business loan within 3 days as opposed to 8-10 days taken by banks.
No collateral required
A business loan from Lendingkart does not put your valuable assets on risk. We offer unsecured business loans that do not require any collateral or security. So, you don’t have to worry about developing your capital assets anymore.
Fair interest rates
Lendingkart uses proprietary big data and machine learning tools to determine the lowest interest rates on business loans, on a case to case basis. This means, the interest rates you get from Lendingkart are the best ones available for your business.
Extended Loan Tenure
Our loan tenure of minimum 1 month and maximum 36 months, vastly extends the credit relief for your business. If you are facing temporary Business problems, a business loan tenure of 6 months or more can give you the necessary buffer for resolving operational issues.
No Hidden Costs
Lendingkart business loans promise zero hidden costs and charges. We only levy a one-time processing fee of 2-3% based on your loan ask and that’s all. This allows you to retain more of the principal amount for business growth.
Flexible Repayments
Last but not the least, Lendingkart business loans can be repaid in monthly or bi-weekly EMIs. Our EMI options allow you to pace your repayments as per your invoicing and sales cycle, for example, if your sales are going great, you can repay your business loan two times faster with the bi-weekly EMI option.
Benefits of Business Loan by Lendingkart
Business loans from Lendingkart are enable you to redraw your business strategies for matching today’s agile work environments. Here are the benefits of taking a business loan from an NBFC like Lendingkart.
– Faster processing:
Faster processing means faster credit for your business, allowing you to explore new horizons and exploit opportunities as they come your way. A timely business loan can expand your marketing potential, speed up your operations, and eventually increase your profit margins.
– Preserving your ownership:
Since it is an unsecured business loan, you are at no risk of losing valuable assets or giving up precious company stock in lieu of investment. So, a Lendingkart business loan allows you to preserve your ownership while also providing you with the funds to grow your enterprise.
– Streamlines your cash flow:
Lendingkart business loans increase your window of opportunity by providing both capital and time for you to streamline your cash flow and get into profitable territory. These loans allow you to strike a balance between your Business fund and company capital fund by providing investment that can be repaid in instalments.
– Improve your credit score:
An NBFC loan from Lendingkart is the best way to improve your business credit score as we report loan accounts to all credit bureaus. Moreover, a business loan with Lendingkart is especially beneficial for companies witnessing a recent dip in credit score due to unforeseen market conditions.
Business Loan Fees & Interest Rates
| Customized Interest Rates | 1.5 to 2% per month |
| Processing Fees | 2-3% |
| Loan Tenure | up to 36 months |
| Pre-closure Charges | Nil** |
| Eligibility Criteria | > ₹ 90,000 turn over for 3 Months |
| Loan Amount | ₹ 50,000 – ₹ 2 crore |
| Installments | Flexible Monthly / Bi-weekly |
**Pre-closures are only allowed after the first EMI is paid in full
Eligibility Criteria for Business Loan
Lendingkart has kept the eligibility requirements to the bare essentials in order to process business loans faster. We do not require too many documents or unnecessary paperwork that can hold-up the loan approval process.
- An established business that has been in operations for more than 6 months.
- A minimum turnover of ₹ 90,000 or more in the 3 months preceding your loan application.
- The business should not fall under blacklisted / excluded list for SBA finance.
- The physical location of your enterprises should not be in the negative location list.
- Trusts, NGOs and charitable institutions are not eligible for small business loans.
Documents Required for a Business loan
| Proprietorship | Partnership | Pvt. Ltd. / LLP / One Person Company | |
|---|---|---|---|
| Bank statement (12 months) | |||
| Business registration proof | |||
| Proprietor(s) PAN Card Copy | |||
| Proprietor(s) Aadhar Card Copy | |||
| Partnership Deed Copy | |||
| Company PAN Card Copy |
1) Business Registration Certificate 2) GST filing 3) Gumastadhara 4) Trade License 5) Drug License 6) TIN 7) VAT registration
3 simple steps to your Business loan
Submit Application
Simply enter your personal, business and financial info to receive a business loan offer.
Upload Documents
Upload digital copies of your documents in a single step process for verification.
Get Sanctioned
Receive your business loan approval and disbursal within 3 working days.
Types of Business Loans
Most people have the misconception that only banks and government institutions can sanction business loans. The truth is, there are several type of business investments available in the market that can be considered as a business loan. It is important that a small or medium enterprise owner knows about these business loan types in order to get funding through proper channels for his/her company.
Here’s a list of six most common types of Business Loan for SMEs
Bank Overdraft / Credit Line:
This facility is available from both banks and online lenders. It allows a revolving credit facility, in which a businessman can withdraw money up to a sanctioned limit from their business account, even if the actual account balance is lower. The excess amount is considered as a business loan, which can be repaid by depositing the same, plus interest, in the account.
Equity Funding
Business owners can also raise funds by divesting their share in the company in lieu of capital investment. While a popular choice in more advanced markets like the United States, equity funding is a less preferred option in Indian investment market by SMEs, as it accompanies the risk of ownership dilution. In case of equity funding, a business owner can retain the option for buy back of shares in order to get back to preferred ownership levels, once the investment objectives have been met.
Short-term Loans
These loans have a smaller-ticket size owing to the shorter repayment window. Generally, a short-term loan is given for a period ranging between 3 to 18 months as these loans are meant for working capital finance and limited capital investment. However, Lendingkart offers short-term business loans for a period of 1 to 24 months, increasing the convenience of credit for small and medium enterprises in India.
Equipment Finance
Equipment finance is a popular means of improving cash flow and working capital. Equipment financing is the use of a loan or lease for purchasing or borrowing hard assets. It is a type of secured business loan because the lender has rights over the equipment in case of a default.
Loan on Accounts Receivables
Also known as invoice financing, these are very short-term credits, given in lieu of accounts receivables. The shortcoming of this kind of business loans is that they can only be availed by SMEs with commercial customers. The loans tenure generally ends on the invoice due date and require full payment along with interest and processing charges.
Factoring / Advances
Under this arrangement the money is paid in advance by the factor company to the business for an accounts receivable. However, instead of paying the full amount, a percentage of amount, usually 70% to 90% of the invoice value, is paid. The rest is retained to cover unforeseen charges, breakage, delivery and quality errors. For this kind of business loans, both the buying and selling companies have to come onboard and work with a factoring company.
Trade Creditor
A supplier who has provided goods or services to your business, but is yet to be paid, is considered a trade creditor. It is a very common arrangement for conducting day-to-day business activities between buyers, suppliers and service providers with long working relationships. The amount due to a trade creditor can also be considered as a very short-term business loan.
Business Loan EMI and How to Calculate It
Business Loan EMI
Different types of business loans can be repaid in different ways. One of the easiest ways to repay a business loan is through Equated Monthly Instalments (EMIs). Your loan is divided into equal fixed sums that are paid on a monthly basis till the full repayment of the loan.
An EMI consists of two parts, the principal loan amount and the accrued interest. Small and medium businesses find it easier to repay business loans with EMIs, as the method allows them to fund expensive assets and expansions without straining their smaller operating budgets.
NBFC loan providers like Lendingkart offer flexible business loan EMIs that can help you repay a business loan two-times faster by opting for bi-weekly repayments. With auto-renewal also on offer by Lendingkart, faster repayments mean quicker access to refinance for the same amount or a larger business loan.
How to Calculate Business Loan EMI?
The Business Loan EMI calculation is done on the basis of a simple formula i.e.
E = P x r x (1+r)n/(1+r)n-1
Here,
‘E’ is the EMI
‘P’ represents the loan amount
‘r’ stands for the interest rate offered on a monthly basis
‘n’ is the duration of the loan
A business loan EMI calculator is a digital version of this formula, that allows you to calculate EMI amount through a web interface. The business loan EMI calculator can help you understand the breakdown of interest and principal loan amount, thus, allowing you to decide the layout of your cash resource planning.
Do’s and don’t’s of Business loans
A business loan can be a great source of capital for the growth of your venture, but, it can also be a path to ruin if you do not plan certain aspects with care. SME loans tend to have a shorter repayment cycle, which means applying for too high a loan amount will inadvertently increase your EMI amount.
If your business runs into a period of low sales or your invoices get delayed, servicing the loan can become difficult and cause a debt pileup. Therefore, there are some things you should consider before applying for a business loan.
Have you explored all other options for managing your Business?
When you go for a business loan, it is because you need capital to fund a critical task. However, a business loan is not the only way to fund your working capital needs, asset acquisition or new business unit. You can also get the necessary investment by adopting cost reduction mechanisms, increasing production and sales to a limited extent, or by using the money in your contingency fund.
So, consider all your financial options carefully before applying for a business loan. Sometimes it may turn out that you did not need a business loan at all and have ended up with a commercial debt for no reason.
How do you intend to use the loan money?
Deciding how you are going to use the loan amount beforehand can put your business on the front foot, immediately after you receive the loan funds. The money can go directly into funding critical tasks. You can even pre-empt the operationalisation of your growth plans if you have previous working relationship with the lender.
For example, Lendingkart business loans can be renewed upon full repayment, so, you can start a new project immediately after finishing the current one, as your working relationship with Lendingkart will ensure a renewal. On the other hand, not planning ahead can sometimes lead to wastage of loan funds, as they get used for non-critical tasks. For example, you may end up using your working capital loan money for paying an existing debt or for purchasing plant and machinery, which will then create a void in your working capital funds.
Does it benefit your business?
Lastly, any form of capital investment should benefit your business. If you have a plan for repaying the loan and also have an intended use-case for the loan money, but it is not providing meaningful growth to your operations, you should probably think again about taking a business loan. So, sit with your financial planners, operational heads and other business advisors to chart a strategy for growth before you apply for your first business loan.











