Rejection is maybe the most common word that most of the business owners or an owner of an SME who has sought the business loans a decade ago or even earlier then they will say that their appeals were rejected by the banks because that was a situation in the yester years. But those days of being rejected are long gone and now getting your business loan sanctioned has become very easy. You do not need to run from door to door or office to office to avail the funding for your business rather you can just sit on your couch, turn your laptop on and search online.
Now, lots of questions are coming to your mind right now
- Is it really that easy?
- So, if it is really that easy are the lenders authentic?
- Is there any risk?
But do not worry; we will make everything clear for you.
Here are few tips which will help you understand the process and you will be able to easily avail the best business loans online. So just scroll down and have a look:
Make sure that the lender is reputed
Be it an NBFC or a bank, there are several lenders of business loans in the financial domain of India. Hence, the first thing you need to do is to make sure that the lender is reputed for its services and is totally authentic. To know about the lender, you can do some research on the background of the financial organization or you can ask the people who have already taken loans from the said institution or you can check online reviews and only if you see that most of the reviews are good then go for it.
Make your CIBIL score better
Whether you will get the best loan or not also depends on you and you can easily higher your chances to get the best loan by improving your CIBIL score. If there any kind of debt, unpaid bills of credit card or EMIs left to be paid then clear them and it will boost your credit score along with your chances to get the desirable loan.
Get relieved of unnecessary debts
Do not mix it with the CIBIL score since it is totally different. The unnecessary debts are the loans that you do not need to pay regularly but you need to pay them for sure. Though the unnecessary debts do not impose any negative impact on your credit score but it sure makes you financially unstable.
Do not forget to check the rate of interest
If you are applying for a loan then you must know that once the loan is sanctioned, you will have to pay the interest on the sum rendered. Now, the rate of interest of business loans varies from lender to lender, so it is something that you must check before applying for the loan. The lenders consider numerous crucial factors in determining the rate of interest like the present condition of the financial market; loan repaying history of the borrower and the expected profitability of the borrower’s business. So you must check the rate of interest charged by the borrower and you should keep one thing in mind that the best business loan means the lowest rate of interest.
Study the brochure to understand the fees as well as the other costs
There are certain fees and costs associated with the business loans and the late payment fees, guarantee fees, processing fees, prepayment fees, and loan administration costs are included in it. Hence, it will be better if you just check how much extra you will have to pay for these reasons and vouch for the lender who charges the least for these things. Always remember that the smallest percentage of these extra costs can be very hazardous for your business.
How good is the customer support?
It is always wise to go for a lender who has an excellent support team for the customers. Once you get the loan, the transaction does not cease rather it continues. So it is better to look for a lender who will help you to solve your problems rather being the cause of your harassment.
Always Check terms and conditions of the loan
Last but, it is very important that you check the terms and conditions properly before applying for the loan. The terms of the loan must have to be acceptable to you and if does not suit you then it may cause a problem while paying the borrowed amount back thus can cause troubles. If you fail to pay then it will tremendously affect your credit score.
So, Keep all the above tips in mind; be smart and take the decisions wisely. Choose the best loan & deal from a trustworthy bank or NBFC that suits all your requirements and offer the best business loans at a low-interest rate and almost negligible prepayment costs.