Due to the high costs of launching and/or operating a restaurant nowadays, you cannot rely on your savings or assets to fund your business. You’d need the security that only a company loan can provide. Now, applying for such money is a major choice that must be carefully considered. You’ll also want to stay away from any potential stumbling blocks to your funding.
Features of Restaurant Loan
Fulfil Your Every Need
Obtain a loan up to Rs. 40 lakhs with no collateral (Collateral is a required element that a receiver must have with him in order to obtain a loan. In the case of failure, a guarantor becomes a co-endorser and assumes obligation or security, to meet all of your company needs, from growth and working capital to your child’s education or a home remodel.
Transfer Loan Balance with Ease
- Interest rates as low as 15.75%* on the existing loan transfer
- Processing fee as low as 0.99%
- To transfer your loan balance, apply now.
Dropline Overdraft Facility
- It provides Overdraft facility without any security. Limit is set in separate Current account which drops monthly till end of the tenure. Pay the interest only on the amount utilized.
- No Guarantor (A guarantor is a person who guarantees payment by another. A guarantor becomes a co-endorser and assumes liability in event of default.)/ Security required.
- Tenure ranging from 12-48 months.
- No Foreclosure / part Closure shall be permitted during the first 6 months of the limit setting.
Quick Eligibility Check & Disbursal
Check your Business Loan eligibility online or at any branch in just 60 seconds. Loans will be disbursed based on previous repayment of home loans, auto loans and credit cards.
You can repay your loan over a period of 12 to 48 months.
Types of Restaurant Business Loans
- Inventory, real estate, and even machinery might be used as collateral to secure the loans.
- Working capital loans are used for short-term, high-interest demands that are payable in less than a year.
- Term loans are offered for significant investments with loan terms of one to ten years.
- In addition to providing collateral security, each restaurant loan application requires the presence of a guarantor.
Benefits of a Restaurant Loan
- There are no hidden fees, and all prices are disclosed up front.
- Loans are processed efficiently. The application and documentation are completed entirely online.
- The online loan application process ensures that the borrower has complete control over the loan. You will not be required to give up any assets.
- You can make bi-weekly or monthly loan instalments. The bi-monthly technique allows you to pay off your debt faster.
- Restaurants can apply for a business loan up to 50 Lakhs.
- The loan applicant can choose from a variety of loan terms based on their need.
How much EMI do I have to pay for a Restaurant Loan?
To know how much EMI you would have to pay every month, try our easy-to-use business loan emi calculator. Simply enter the following details & know your EMI:
- Loan Amount
- Desired Interest Rates (%)
- Tenure in Years/Months
Eligibility for a Restaurant Loan
Ability does, in fact, attract money. The borrower must demonstrate or hire the requisite restaurant management expertise. If the person has sufficient abilities and experience, they will be able to open a profitable restaurant and repay the debt.
A guarantee is frequently necessary for loan approval, and it aids the lender in covering losses in the event of loan default.
Assets are required as collateral by some lending organisations. Hypothecations are required if you do not fully repay the restaurant business loan.
- Borrower’s Credit Ratings
The creditworthiness of a company is determined by credit scores. Before a loan may be issued, lending institutions require a minimum score as proof of repayment capacity, present market position, and prospective earnings.
A percentage of the loan amount paid up front fosters trust in the lending relationship. Most organisations demand entrepreneurs to pay for a small portion of their idea and acquire the balance through a loan.
Major Mistakes to Avoid while applying for a Restaurant Loan
1. Making Multiple Loan Inquiries
It’s understandable for you to consider approaching multiple lenders for a loan, especially if you urgently need a loan, since the possibility of one or more of them rejecting your application is always present. While inquiring about a loan from various lenders doesn’t sound like it could be an issue, in reality, it can set you back significantly.
2. Failing to present a Business Plan
You need to present a very well-designed plan for your restaurant along with accurate figures that show proper business forecasts.
3. Forgetting about your CIBIL
Your credit score has a huge impact on your loan application if you apply with a low CIBIL score, your request for a loan can even get rejected. A good credit score shows you to be a responsible borrower to the lender.
4. Overstepping the Loan Amount
Be very realistic when choosing your loan amount. Remember that the lender will ultimately review your financials and approve your request accordingly. If you overstep your affordability, they might wonder whether you are a risky borrower.
5. Not Comparing Lenders
The market has several lenders who specialize in business loans. Take your time, compare lenders, and see who offers you the funding you need on the terms that benefit you the most.
6. Withholding Information from the Lender
As much as it is important for you to know your lender thoroughly, the lender must also do the necessary due diligence to understand you as a borrower. They are likely to collect income documents, tax returns, GST filings and bank statements to gauge your creditworthiness. While withholding information or altering the numbers when it comes to your holdings and expenses or previous borrowings might seem like an easy way to ensure you get a loan, it’s a major mistake you should definitely steer clear of.
7. Not Reading the fine print
Make sure to go through each clause of the loan agreement and get any queries cleared out before signing on the dotted line. Your loan agreement might have several terms that you need to be aware of as a borrower.
Why Choose Business Loans from Omozing?
Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . Currently, we are offering We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that be tracked online.
- Short Term Loans for working capital needs
- Medium Term Loans for various business needs
along with ITR Saral Copy, Computation of income statement, Balance sheet, P&L, 3 CA , 3 CD Audit reports along with all schedules.
Omozing Business Loans based on the following:
- Unsecured Working Capital Loan
- Invoice Discounting
- GST Surrogate
- Revenue Based Finance
- Banking Surrogate
5 Reasons to choose Omozing
1. Business Loans from INR 1Lakh to INR 1Crore
Business Loan Interest Rates starting from 0.8% p.m, and Loan amount ranging from INR 1 lakh to INR 1 Crore. The Minimum and maximum repayment period ranges from 1 month to 48 months.
2. Cutomised Tailor Options
- Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.
- You have the freedom to utilise your loan anyway you want, whether for business or for immediate personal needs.
- Flexible repayment options depending on your specific cash flow and budget, as well as conditions that is beneficial to your position.
3. Lower CIBIL
While most lenders require borrowers to have a CIBIL score of over 750, at Omozing.com provide loans even with 600. Besides the CIBIL score, we also considers your age, employment status, and net monthly income.
4. Ways to apply
You can apply for a business loan through us by 2 ways:
1. You can download our Mobile Application from Google app store.
2. Apply on portal using out Business Loan link
5. Prompt Loan Disbursal
An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.
How to Apply for a Restaurant Business Loan?
- Online Application – On the Omozing website, you must fill in some basic information.
- Documents should be submitted – The applicant must upload all required papers to the website. This shouldn’t take long because all documentation is minimal.
- Disbursement of the Loan – The applicant receives all of the time saved during the whole application procedure. The loan is disbursed in a flash. Within three days, the loan amount arrives.