Whether you are just starting or looking to expand your well-established business, one challenge faced by all owners is financing. Formal source of financing is necessary. It allows you to get the required amount at a fair interest rate and repayment terms. You can systematically repay the borrowed amount in equated monthly instalments as per your affordability.

Business Loans are curated keeping in mind the requirement of today’s business owners. It has a simple eligibility criteria. You can apply for the Loan by visiting the nearest bank branch or online. The Business Loan calculator is a useful tool that comes in handy to decide your Loan eligibility and plan repayment. Here are a few things you should do before applying for a Business Loan:

Assess Loan requirements

You need to assess the need for a Loan. Chalk out a clear action plan. This lets you determine a suitable Loan amount and ensure proper utilisation of funds. A common mistake most business owners make when availing a Business Loan is availing of an amount they are eligible for and not what they need. Remember that it is you who needs to repay the Loan amount. Hence, it is better to get a Loan amount you require and can afford to repay than take on unnecessary liability.

Use a Business Loan calculator to decide the Loan amount for your requirement. The online tool provides accurate results within minutes.

Get your finances in order

Being unprepared with your application is the biggest put-off for any bank. It makes your credibility as a borrower questionable. Even if you can get the required amount, repayment becomes challenging for you. Hence, you should get your finances in order before applying for a Loan. The bank checks both your personal and business documents.

Keep everything you require handy to avoid last-minute hassles. Check for the accuracy of documents before submitting them to the bank.

Apply for a suitable Loan

Business Loans are of several types. You can apply for any based on your requirement and eligibility. Startup Loan, Working Capital Loan, and Overdraft facility are a few of the most popular ones. There are several Loans under Government Schemes you can apply for. Pradhan Mantri MUDRA Yojana is one such Government Scheme under which you can apply for a Loan.

The MUDRA Yojana provides Loans up to Rs. 10 lakh. There are three categories here: Shishu, Kishor, and Tarun. Each Loan can be availed for different purposes and offers a reasonable Loan amount. MUDRA Loans are offered at a reasonable interest rate for a flexible repayment tenure.