Get an Instant Approval on Business Loan
Posted by Bhavna Singhal on November 6th, 2019
If you are a business owner, then you always have desired to get more funds. The reason could be anything from incurred expenses to late payments from clients. This fund can come handy in many situations, and one possible source of this fund can be from savings. However, the majority of business owners tend to invest all their savings in the initial stage of their business. In such situations, there are financial organizations present who offers an unsecured business loan to the business owner. You can find a plethora of such institutions in India like NBFCs, private and public banks, online lending companies, and more.
If you want to enjoy the benefits of this loan then here’s how you can apply for it:
- Evaluate your credit history and credit score: If your business is less than three years old, then the credit history of your business will also be evaluated along with the personal credit history. You should take some time to arrange your personal credit history before applying for a business loan. Your credit score should be more than or equal to 700 for getting instant approval.
- Approach small commercial banks rather than going for large national commercial banks as you might have improved chances of getting the loan in small commercial banks. Do not get demotivated if one bank rejects your loan as you might get approval from another bank, so keep attempting.
- The most vital step is to prepare a great business plan.
- Lastly, you should prepare a presentation that would satisfy the loan officer and book an appointment with them. Your presentation should include financial statements, charts, spreadsheets, and graphs.
However, it is not that easy to get approval for the business loan as many business owners struggle to get approval in India.
Also Read - A Guide To Choosing The Right Business Loan
Here are some of the tips that you can follow to get instant approval on business loan:
- You should be aware of your requirements and choose the loan amount accordingly instead of going for huge amounts blindly. The amount of loan that you would take will include interests, so keeping the extra amount of money without any use is not advisable.
- To get instant approval, you should keep all the required documents up-to-date. Many business owners face delays in approval due to insufficient documents. It is advisable to keep a soft copy of the documents ready with you, and that would assist you in giving the papers on time without any delay.
- Check if you meet the requirements provided by the lenders. It is recommended to check the eligibility criteria specified by them before applying for the business loan.
- While applying for the loan, you should make sure that you are financially stable as most of the online lenders check for financial factors before approving the loan. Make sure that you have timely paid EMIs, GST returns, and income tax returns.
- You should always check the credit score before applying for such loans and should make sure there’s no error in the credit history. However, if you find any mistake, then rectify it as soon as possible by raising a dispute with CIBIL.
Getting instant approval on a business loan can be troublesome in India, but if you follow the tips mentioned above, then the probability of getting the approval will surely improve. Moreover, you should always apply for such loans sensibly.