What Are My SME Loan Options In India?

Posted by Anuj Pandey on August 3rd, 2017

Is your working capital insufficient to meet your daily expenses? Do you have a small business that needs finance for further progress? If so SME lending options are a source you ought to look at. Some of these loans are secured, while some are SME loans without collateral. For any entrepreneur, it is important to look at these business loan options. These loans are available at low interest rates and have various beneficial facilities like line of credit. There are numerous options of SME loans in India, and these range from working capital loans to machinery loans, apart from general business loans.

Various SME options available to you

  1. Business loan: A business at any given point of time needs finance. This can be for a variety of purposes like for purchasing assets, financing expansion, training staff, etc. A business loan is a loan scheme that is customized to suit the needs of various small and medium enterprises. These loans are affordable and are available at low interest rates with easy online application and quick approvals in 24 hours. Choosing an unsecured business loan may be a better idea for you, since they do not require you to pledge your assets. These loans are usually up to Rs.30 lakh and may also give you access to a convenient Line of Credit facility where you get a certain credit for a certain duration and have the freedom to only use what you need and pay interest only on the amount availed. If you need customised loans for your business, you can also get a specific working capital loan or a machinery equipment loan.

  2. Overdrawing and short term funds: Various lenders offer business owners the facility to withdraw more money than the balance available in your account. Overdrafts are quickly approved and do not require much documentation. This option also offers you tremendous flexibility of finance. You can over draw multiple times according to the frequency of your cash needs. This option is perfect for businesses that have no fixed time to purchase supplies. However, the overdraft charges may be high, so it is important to calculate what you will end up paying.

  3. Finance from equity: Equity means attracting other individuals to invest in your business in exchange for a percentage of ownership. This method can provide your business with a large amounts of funding. It is also ideal for long term projects. The only downside is that you stand to lose a share of ownership in your own firm.

  4. Secured business loan: This option is the same as a business loan; however, this loan is secured, which means you will need to provide a valuable asset like property as a collateral to the lender. Since the lender receives security over the loan, the application processes for these loans are relatively easy and short. It is also much easier for you to get approval over these loans.

  5. Loan against property: This is a loan where you get finances against a property as security. Here, a certain percentage of the real estate value of your property is taken as collateral. In this option, the lender takes minimal documentation and the application process is easy. Since the collateral has been taken, the application is not heavily scrutinized and the loan is processed almost instantly. This option also offers you flexible loan amounts and tenors to choose from.

The above are simply a few options you can use to fund your firm’s financial needs. Be careful when scrutinising your business financing and pick a convenient option from a trustworthy lender, who not only offers affordable finance, but also has no hidden charges. Apply for Bajaj Finserv’s Business Loans, which offer quick approval and money in your account within 72 hours!

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Anuj Pandey

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Anuj Pandey
Joined: June 30th, 2017
Articles Posted: 22

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