In case you want emergency funds, for your business, consider applying for a business loan. You may require a loan for carrying on your daily operations, expansion of your existing business, buying equipment, paying off a loan, etc. And these requirements arose all of a sudden. For a business loan, you can go for a secured or an unsecured loan. For a secured loan, you have to keep collateral or a mortgage. Now, for an unsecured loan, there is no requirement for a mortgage. You can also apply for a loan online loan and provided you meet the eligibility criteria; the lender would approve the amount. The online method is easy and would save you time. Read on and know more about small business funding online.
The first step is that you have to visit the lender’s website. Find out the button or link for applying for an online business loan and click on it. Use the online EMI calculator on the portal and get to know the amounts of your EMIs (Equated Monthly Instalments). You can know this even before you apply for the loan. An online calculator is a simple tool. It is available on almost all lenders’ websites that you would visit. You do not need to create an account or log in for using the calculator. It is very easy to use and you can avoid manual calculations in the process.
With the online EMI calculator, you can assess the monthly instalments that you have to pay for a small business funding online along with the interest rates. The EMI is an important determinant in finding out the loan amount and repayment period. It would help you to calculate your payouts at a fast pace and, plan the monthly budget in advance. It would help you in taking off the stress from the repayment process. The results that the calculator would return are:
- Monthly Repayments for the loan – EMI amount that you have to pay each month
- The interest amount that you need to pay- This is the interest on the loan amount
- Total amount required to be paid – The total amount that is the sum of the principal and interest
The steps for calculating the EMI include the below ways:
- First, you have to put in the amount of secured or unsecured business loan online, the rate of interest, and the loan repayment period
- The EMI amount would get displayed as soon as you put the required details
- If you want to change the EMI, change the loan amount, or the tenure and you will get the desired result
- In case you wish to lower the EMI, either you reduce the loan amount, or just stretch the loan repayment period
- If you think that you would be able to pay a higher EMI amount, just increase the loan amount. You can also lower the tenure.
The next step consists of the application process for the online business loan. You need to fill up the online application form. Provide your personal details and as per the lender’s requirements, upload the soft copies of certain documents. You do not need to visit the branch offices of the lender or submit any hard copy.
After this, wait for the lender’s approval. He will scrutinise your details to check your eligibility.
Lenders have separate criteria usually but some of the standard requirements are:
- You should be a resident of India
- If it is an unsecured loan, the lender will pay more emphasis on your income, financial stability, etc
- You have to be 21 years or above and this is the usual requirement
- There is no rigid maximum age criteria but many lenders prefer that you should be 60 years during the maturity of the loan
- You have to disclose the number of years for which your business has been operational
- Provide proof that your business is profit-making, projected cash flows for future, etc.
- It is very important to ensure that you have a high credit score. Make your loan repayments on time to achieve these, for example, the credit card bills, ongoing loan instalments, etc.
- You have to stay in your current location for a certain number of years
If you meet the eligibility criteria, the lender would provide a loan offer with a specific amount, loan term, and interest rate. If you accept it, the lender will disburse the funds to your bank account. It may take a few hours or a few days. Some lenders may offer pocket low EMIs with flexible repayment periods. Pay through the auto-debit process. This would reduce your chances of default.
With the small business funding online process, you can carry out the entire process from a remote location. There is no requirement for hard copies. Submit the application form in a few clicks. You may just have to upload soft copies of some documents.