In India, MSMEs are among the most prominently growing sectors peddling the country’s economic growth. Even in the backdrop of a reeling pandemic, the medium and small-scale industries of the country have contributed significantly to the much-needed rolling on of its economy, providing the necessary financial support. Nevertheless, most medium and small-scale companies also carry a capacity to grow and expand, requiring necessary funding simultaneously to push such growth.
The country’s financial market has thus enabled easy funding of these organizations through accessible online business loans in India. Contrary to their offline counterparts, they have backed businesses with readily available financing only against nominal eligibility requirements. You can check out some of the top features of these advances to arrive at the best business loan available online for your venture.
The Best Online Business Loan in India – Top 7 Things to Know
The key idea behind simplifying financing through the digital mode is to provide businesses access to funding in as little time as possible. Several online business loans in India thus come with some of the shortest approval durations. With some of the best lenders in the market, eligible candidates can receive approval for the applied loan amount in as little as 15 minutes of application.
Once approved, lenders also run a quick verification of the business venture as well as the owner to establish eligibility. The process involved is also designed to cut short the total time taken in providing disbursal through the conventional funding method. With everything in place, including applicant verification, documentation, and repayment capacity establishment, applicants can expect disbursal of the approved loan amount within 1 to 2 working days.
Keeping in mind the necessity to cut short lengthy procedures, lenders also stick to minimal paperwork requirements, bypassing many unnecessary checks and verifications. Usually, the standard document requirement includes the following.
- KYC documents – KYC documents primarily include identity and address proof of the business as well as a business owner and can include documents like PAN card, voter ID card, Aadhaar card, passport, business registration certificate, etc.
- Income documents – As the financing is a type of commercial loan, income documents would include both individuals as well as business income proofs. They can include profits earned, ITR filed, financial statements, etc.
- Proof of business vintage – To avail of an online business loan in India, a venture must also be running continuously until the present for a stipulated number of years, establishing its stability.
- Passport size photo – The applicant should also submit a passport size photo for a record of identity.
Simple eligibility requirements
To make financing accessible for maximum business ventures across size and scale of operation, the eligibility requirements are also kept simple for some of the best online business loans. They usually include minimum age requirement, minimum years of business operation, and Indian resident citizenship.
To hasten the processing of an online business loan, some of the best lenders have also introduced the doorstep financing facility. It further simplifies lending as the borrower does not even need to step out of their home or office and can request document collection and verification at their doorstep.
Loan amount of high value
Not to mention, the amount of financing is not a constraint when it comes to some of the best online business loans in India. Depending on the business’s eligibility for financing, the unsecured loan amount can go up to Rs.25 Lakh.
In the case of secured loans such as business loans against property, the amount can be typically high due to the presence of a valuable asset available as collateral.
Flexibility in tenure availability is another of the top benefits an online business loan comes with. Depending on the applicant’s eligibility fulfillment and repayment capacity, tenures for unsecured loans can go as long as up to 3 years, making repayment possible in easy EMIs.
Alongside, if you have done proper market research, you can also get your hands on an online business loan in India with a competitive rate of interest and other charges. Use a business loan EMI calculator to assess your total repayment liability as well as EMIs and decide accordingly.
Hero FinCorp is a diversified financial services provider in India. We are an associate company of Hero MotoCorp Ltd.
Hero FinCorp Limited (HFCL) was incorporated in December 1991 as Hero Honda FinLease Limited. After the restructuring of our parent company Hero MotoCorp Limited (formerly Hero Honda Motors Limited), HFCL also changed its name to Hero FinCorp Limited in July, 2011.