Navalur is in the southern part of Chennai. This locality has witnessed a rapid growth in IT sectors, making it a demanding location in Chennai. Due to the boom in IT sectors, there is an increase in employment opportunities. With outstanding road infrastructure, proximity to beaches, and entertainment, it attracts more residents to this locality.
In an IT hub like Navalur, starting a business or growing your existing business can give you significant advantages in terms of profits and increase employment opportunities. However, a lack of financial resources can hinder starting your business. In such situations, a small business loan will be an added advantage in making your business dreams come true.
In this article, let us understand what a business loan is and how you can get one in simple steps.
What is a Business Loan?
A business loan is a type of personal loan offered without any collateral. Since it is an unsecured loan, this loan is provided based on how well established your business is and the potential growth of your business. If you are looking for a personal loan in Chennai for your business, you can easily apply using Buddy Loan. It is one of the best third-party loan aggregators with affordable interest rates.
Right Time to Apply for a Personal Loan in Navalur
You can apply for a personal loan when you have the following business requirements:
- To Launch your own business.
In an IT hub like Navalur, you can start a business and grow it successfully. But a lack of financial resources might hinder making it a real venture. Therefore, apply for a business loan to help you bring your vision into a successful experience.
- Expanding your business
When your business is running successfully, you might want to expand your business into various branches. However, developing a business is an extensive process that requires significant investment, and hence, a personal loan is a suitable option to meet such a vast expense.
- Purchasing New Equipment
With changing technology, you must upgrade your business with the latest machinery and equipment when needed. Hence, taking a business loan will help you curb the expenses for the new machinery.
- Inventory management
It involves tracking the stocks required from purchase to sale of the product. It mainly includes managing raw materials, warehousing, and reaching the final product to the consumers. The whole process costs a lot, and thus taking a personal loan will help you meet such costs efficiently.
- Marketing Strategy
A good marketing strategy is required to build a strong brand that attracts customers. However, planning and implementing a plan comes with its expenses. Therefore, you can use a small business loan to meet those expenses smoothly.
You can apply for a business loan quickly if you meet the following eligibility criteria:
- Nationality: Indian.
- Age: 24 to 70 years.
- Business Tenure: Your business must be registered and established with significant profits and ROI for a minimum of three years.
- New entrepreneurs, SMEs, MSMEs, Manufacturers, etc., are eligible for this loan.
- Your business should have an annual turnover of INR 12 lakhs and more.
- Your business must not have any pending debts in past years.
- Must have a credit score above 750.
- Proof of Identity: Aadhar card, Driving license, PAN card and passport
- Address Proof: Aadhar card, passport. electricity bill or water bill
- Proof of Income: Bank statements for the last three months, Salary slips for the previous three months, ITR (Income Tax Returns) for the previous three years, and balance sheet with P & L statements for the previous three years audited by a chartered accountant.
Benefits of taking a Personal loan in Navalur
- Collateral Free: You can get a personal loan without pledging any collateral.
- No Hidden Charges: There are no hidden or additional charges for a personal loan. However, the lenders will charge GST of 18% and processing fees of 0.5% deducted from your total loan amount.
- Minimum Documentation: You have to submit minimum documents such as Aadhar Card, PAN Card, Voter ID, etc., for KYC verification.
- Flexible Tenure: The repayment tenure is flexible and starts from 6 months to 60 months. You can choose your repayment tenure according to your budget and convenience.
- Quick Loan approval: Since the process is online, the loan amount is usually disbursed to your bank account within 24 to 48 hours once verification is complete.
- Paperless Process: You don’t have to visit your bank to apply for a personal loan physically. You can apply using their official website or mobile application like Buddy Loan.
Essential Points to Consider for a Personal Loan in Navalur
- Credit Score: You must have a credit score of 750 or above. Having a good credit score indicates that you are a credible borrower, and it also shows that you are capable of repaying your loan on time. A good score will also benefit you in getting a loan at lower interest rates. Hence, it is best to check your score frequently to keep track of your credit history. You can check your credit score using Buddy Score to know your repayment history.
- Loan Amount: Take the loan amount only for what you require. If you take more than the required amount, you may miss out on repayment due to a debt burden, which will further harm your credit score.
- EMI: Before applying for a loan, calculate the EMI beforehand. Doing this will help you have a clear view of your monthly expenses.
- Debt-to-Income Ratio: DTI (Debt-to-Income) ratio shows how well you manage your debts with your current income. Hence, maintain the Debt-to-Income balance of less than or equal to 50%.
- Co-borrower: You can get a co-borrower with a good credit history to apply with you when you have a poor score. The co-borrower can either be your spouse, parent or friend.
An IT hub like Navalur opens many opportunities for entrepreneurs to start or expand a business. However, sustaining it is the most challenging task in a competitive market. Therefore, to save your business from any unfortunate circumstances like liquidation or loss, it is best to apply for a personal loan to meet your business’s financial requirements.