Funding’s & Small Businesses
Small business loans help entrepreneurs grow their business by providing them with working capital. The money borrowed through a small business loan can be used to fulfil any business requirement such as to purchase new equipment/ inventory, to pay staff and can even be used to expand the business and provide the working capital.
Getting loans from traditional banks or more reputed lending organizations can be difficult at many times. This is because they have some strict lending policies which can be difficult for many of the small business owners to fulfil.
However, with the introduction of the online lending system, there are better funding options available for small businesses.
If you are among the business owners who’ve already started the hunt for a loan, then you should be aware of certain things before you opt for the one. Though small business loans are widely available they always come with their own set of pros and cons. Some have high rates but liberal policies while some have lower rates but strict policies. Some are ready to offer a high loan amount while the others offer comparatively lower loan amounts. While few decide it depending upon your business potential. So, which one is best totally depends on your requirements.
Here is a list of the best small business loan of 2020
Interest Rate – 15.65% p.a. – 21.20% per annum
No collateral required
Loan amount – Up to ₹50 lakh (depending on your eligibility)
Tenure Period – 1 to 4 years
Processing fees – 2.5 % of the loan amount
Interest rate – depends on the borrower’s profile & banks policies
Loan amount – up to ₹75 lakh (depending upon the business potential) Tenure period – 1 – 5 years
Processing fees – 2.5 to 3 % of the loan amount
Affordable interest rates
Door-step service available
Loan Top-up facility available*
IIFL Finance Small Business Loan
Interest Rate – 16% p.a. to 26% p.a.
Loan amount – Up to Rs.50 lakh
Tenure Period – 1 year to 4 years
No requirement for collateral.
The online application process has made Quick loan approval
Processing fees – 3% of the loan amount
Axis Bank Small Business Loan
Interest Rate – Depends on the borrower’s profile the terms and conditions of the bank.
Loan Amount – ₹ 50,000 to ₹50 lakhs
Processing fees – 1.25% of the loan amount
The loan is Collateral-free.
Balance transfer facility available
100% online application process.
Interest Rate – Starts at 18% p.a.
Loan Amount – Starting from 1 lakh to ₹ 30 lakh
Flexible loan repayment tenure is available.
No requirement for collateral.
A faster Loan approval process
Processing fees – can go to 3% of the loan amount.
Important facts about the Best Small Business Loans
- A best small business loan is the one that is ready to lend even a small amount to the business owners so that they can maintain their capital flow.
- Charges pocket-friendly rates for the loan so that a small business owner can bear it.
- It should not depend much on the credit history as in that case it will be difficult to get a loan for those who don’t have a credit history.
- It should offer a business line of credit as that is one of the best ways to finance a small business.
Whatever you decide to go with, always research before you select one. Try to be realistic with your plans and ideas and above all always consider your ability to repay the loan.