Business loans are often availed by businesses to secure any expenditure they are unable to cover otherwise. These are of different categories and can be both secured and unsecured. Similar to any other loans, there is an interest amount that needs to be paid back along with the principal amount at the end of a fixed duration. The process from application to disbursement of business loans, under various government and private schemes of finance companies, entails quite an extended set of procedures and paperwork. The approval formalities on these loans can also be a time-consuming process.

To simplify the availing of business loans, Financial Technology (FinTech) companies revolutionized the space with the introduction of instant and quick business loans. Instant business loans are available through digital platforms and various FinTech apps. These applications are easily available for download onto digital devices through various app stores. These are especially beneficial for small businesses looking to streamline transactions to make up for lack of resources.

If you think your business can benefit from a quick business loan, here is how to get business loans in India.

When are you Eligible to Avail of These Instant Business Loans?

1. The borrower applying for the instant business loan should be over the age of 21 and below 65.


2. The business should be at least 6 months old. In certain cases, it may be required to be at least a year old.


3. The company must be able to present an audited financial report of the past year.


4. Yearly turnover for the business needs to be more than 24 lakh. This value can vary with the amount of money availed as loan. Some companies also consider monthly or quarterly turnovers.


5. For self-employed individuals, their skills and qualifications need to meet the predetermined criteria list of the FinTech Company.

What Documents do you Need to Avail of an Instant Business Loan?

1. Passport size photographs


2. Any valid government identity card or proof


3. Proof of address of the business


4. Proof of address of the person representing the company. This is mandatory if the individual is self- employed.


5. Bank statements of the business (individual in case of self-employment) of the past six months.


6. Copy of trade license of the business


7. Profit and loss statements for the past two years or a minimum of 6 months.


8. Past income tax statements (depending on lender company policies and borrower eligibility).

How To Get Business Loans In India?

Most quick business loans in India are available through digital apps that can be downloaded from the App Store. The entire process of application, verification of documents, approval, and disbursement of the loan takes place through the app. From a matter of months, the process can now be completed in 24 hours.

For other financial/lender companies, some representatives assist with the process of business loans. It is their responsibility to collect, verify, get approval, and ensure the transfer of money to the borrower’s or companies’ accounts.

Either way, the advantage is in the omission of lengthy procedures that often made it difficult for companies who are in dire need of financial help.

Tips to Keep in Mind to Get Quick Business Loans

1. Loan requirement details: A business needs to match its loan preferences with the financial company they would avail a loan from. Moreover, it is about identifying the business needs and opting for an instant business loan that meets those needs. Check on interest rates, duration of loan, repayment terms, and conditions from multiple FinTech companies.


2. Loan eligibility: Although there are a few standard requirements for all companies, usually, all digital platforms have their eligibility norms. Go through all such criteria before applying. This also ensures that companies of various statures can avail of these loans simply by finding the best fit.


3. The validity of documents: Business loans always require more documents than, for example, a personal loan. Before applying for a loan, a business should ensure that all required documents are available and authentic. Any sort of document forgery will lead not only to the refusal of the loan but also will go on permanent financial records of the company in the market. This may affect their position in the market in terms of other loans and even investments.


4. Prepare financials: As mentioned above, there are several financial documents, indicating company performance, that are required for application of instant business loans. If such documents are unavailable, it is advised to get them prepared by a professional before application.


5. Credit score: The credit score of a company is a record of prior financial transactions or loans availed from banks, financial organizations, or other sources. The records also show compliance or defiance of all lender rules and regulations and whether the amount was repaid on time or not. Any new business loan, instant or otherwise, considers the credit score as an indication of security. Instant business loans are mostly unsecured (i.e., no requirement of property or possession to be held as security). Therefore, credit scores offer a clear financial history of the borrower. Credit scores also affect the cost of funds.


6. Repayment strategy: Keep a secure repayment plan in place while applying for a loan. Not only would it prevent possible repayment default but also ensure the lender company that there’s a proper business plan in place.

How are Instant Business Loans Beneficial?

• As the name Instant or Quick business loan suggests, the time taken to complete the disbursement process of such loans is much less, as low as 1day. The time constraints of loans are greatly reduced.


• These loans assist in the purchase of new pieces of equipment and up-gradation of technology which can then, in turn, assist in the raising of profit margins so that repayment of these loans becomes easy.


• The financial help can assist if there is a seasonal increase in expenses that were not budgeted for.


• Assist in meeting emergency expenses


• Low-interest rates


• Helps in the re-arrangement of cash flow in business by substituting certain expenses with the loaned amount.

Conclusion

Digital platforms and FinTech companies have made the process of business loan availability extremely simple, especially keeping small and medium businesses in mind. These loans have made emergency provision of funds for businesses effortless and time-saving. There are many different types of instant business loans that companies offer. With a little focus on business’s specific needs, instant or quick business loans can be availed from various financial companies.