Entrepreneurship has been the newest craze in the era of innovation and growth, though India is not too far behind. Business is a very fad and rising, in particular with new entrepreneurs. There is therefore the need to fund and support the business and its growth with loans.
A business loan is a type of loan intended to fund a company’s various capital needs. Companies are able to reach new heights with expanded employees, specialized equipment, and quicker return time using various forms of commercial credit. For any productive company, the financial flow is the lifeline. You need a lot of working capital, whether you want to start a new company or to revamp your current business, raise operating resources, or forerun your competitors. The specifications, however, depend on the business forms.
Therefore, at Karma Solutions, we offer customized Business Loans that are suitable for your business plan. The business loans are given against the company’s income and its capacity. This capital amount will help the organization to scale up with sustainable growth.
At Karma Solutions, we understand every market and stay up to date. We have a flexible, quick, and hassle-free funding service that helps you to keep you ahead in the business world. Our team is proud to partner with the companies for the financial route. The customers highly appreciate us because our process continues in directing the funds to the right channel and boost your business.
Business Loan ROI:
The interest rate on the business loan depends upon your business, the loan amount you have applied for, and your past relationship with the bank. The current rate of interest on a business loan starts at 13.50%.
The Process of Loan Approval:
Application Details – Apply for the loan by filling up your necessary details. You need to fill them carefully with precise and specific answers.
Document submission – Depending on your loan eligibility, you have to furnish the documents required for the application process.
Verification – A verification process takes place by involving you in person. The agenda of your business, goals to be accomplished with the loan amount will be discussed in detail
Approval – The loans are sanction if all the criteria are matched.
Disburse – Receive your required loan from the partnered bank.
Bank Statements (At least six months statement)
Latest ITR filing – This may include a Balance sheet, Audit Report, P & L certified by CA
Factors that contribute to the eligibility for business loans:
CIBIL score – Credit rating is a critical factor and directly proportional to the number of loans the company will receive. One of the key factors considered during payment is the creditworthiness of the product.
Cash Flow Status – Essentially the banks have due diligence to test the financial stability of the business before they fund it, in order to categorically evaluate the chances of recovery or default. Loans rely a great deal on the company’s accurate cash flow declarations. The business has to explain exactly what it intends to do with the loan and how it plans to generate revenue for the loan.
Business Type – Most businesses can be classified depending upon the nature of their business into Cyclical, Defensive or Growth company. It also depends upon the stage and maturity of the business.
Collateral – The best way to finance a loan is to secure a loan for an unsecured individual without collateral such as personal loans. It is easier for the banks to authorize and sanction the loan when it comes to a secured loan with collateral, whether the guarantee is directly assured by the owner of the company or by the sole proprietor. The most common collaterals are real estate, company stocks, cash savings or deposits, automobiles, and equipment.
Get your business loan from Karma Solutions and have a secure future for your organization