If you are in Bangalore and want to start a new business or want to expand your existing business, then gathering enough funds will be the first and foremost requirement to do so. This is where the business loan comes to your help.
Bangalore is the IT hub of India and one of the fastest developing business towns. However, most of the businesses over here are followed back by the development of the IT sector. This is because most of the start-ups and ventures in Bangalore are tech-related which provides a different kind of online services. All this has inevitably prompted the requirement for money to support new companies winding up in the necessity of a business loan.
The Funding Options
To fulfil the financial needs of the entrepreneurs, many banks, private financial companies, and investors provide business loans in Bangalore. These loans have different features, eligibility requirements and the interest rate charged for them, but the ultimate thing is they provide funding to the business which helps them to survive and grow in the competitive market.
Here are some of the business funding options available in Bangalore:
If you own a tech start-up in Bangalore, crowdfunding can be a good option to get funding for your business. A tech start-up has good capital requirements, this is because you need to hire qualified staff and corporate office space. Moreover, with tech start-ups, the business ideas involved may cause rejection of the business loan application with banks. Crowd-funding is one of the August options that can help you afford all of these without going for a business loan.
You can go for any trusted crowdfunding platform and post about your business there. You can also directly start looking for the investors through the crowdfunding platform. Contact investors and try to convince them to invest in your business. Make a sound business plan showing all the potential growths, challenges, and strategies to defeat challenges. Including these points will give you a realistic plan and will attract more investors.
Angel Investment for Your Start-up
Angel investors are one with surplus funds and a keen interest to invest in upcoming start-ups seeing the profit-making potential.
They also work in groups of networks to collectively screen the proposals before investing.
Angel investors have already helped many start-ups & tech-related businesses to survive and then grow further. The best-renowned companies which have been benefited by angle investment include – Google, Yahoo and Alibaba followed by many more like them. While investing in such ventures, the investors generally want up to 30% equity. They prefer to take more risks in investment for higher returns, hence to get more funding, angel investors are better than business loans from the banks.
On a broader basis, the Government of India is also actively taking actions to encourage and help entrepreneurs with the start-up in every possible way. Start-Up India is one such scheme by our government that has been set up to help start-ups survive & grow without facing funding as a roadblock for them. Here are some of the government schemes which can help tech-related start-ups in India.
Multiplier Grants Scheme
- To establish, nurture and strengthen the linkages between the Industry and Institutes.
- To promote industry-oriented R&D at institutes
- Encourage and accelerate the development of indigenous products and packages
- Bridge the existing gap between R&D / Proof-of-concept and commercialization and Globalization
Hardware Technology Park Scheme
- 100% FDI investment permitted through automatic route
- Duty-free imports/ domestic procurement is permissible for Capital goods.
- Electronics Hardware Technology Park unit may import free of duty all types of goods.
- The units shall also be permitted to import goods, including capital goods, free of cost or on loan.
Software Technology Park Scheme
- The Software Technology Park Scheme is a 100 percent Export Oriented Scheme for the development and export of computer software, including the export of professional services.
Online Business Loans
Business loans have been the most trusted option for several people when it comes to funding businesses. But one of the drawbacks with their loans was the long waiting time for approval, but thanks to the online business loans, Gone are those days when people had to visit banks while seeking a business loan. The online lending options have changed everything, as the use of technology has fastened up the entire process. This has made even comparing among the lenders much easier. To avail all these facilities what you need to do is- search for online business loan lenders (all banks and NBFCs now offer business loans online) Check for their business loan eligibility/interest rate, check for the customer reviews and ratings. Apply with one which suits your requirement by filling the online form and uploading the required documents.
Business Loan Rate of Interest
The rate of interest for a business loan varies from bank to bank but mostly depends on both your business and personal profile and creditworthiness. Currently, it’s 13.5 % p.a * with processing fees ranging from 1 to 2%.
With all the business funding options available, comparing business loan lenders proof to be very helpful. You can borrow from banks or online moneylenders to get lower rates and maximum benefits.
However, for a worry-free borrowing, you need to invest your time before you go for a particular loan or lender.