Funding is an extremely significant aspect in line with meeting the vision of a business. Funding and fundraising, both are fundamental modern business scenarios that support the growth of a startup. Launching any business requires capital investment, whether the start-up is any type of MSME or large enterprise. Funding makes your business initiate with a strong base and helps to expand and grow further. Finding funds for a start-up business can be sometimes challenging and tiresome task.
Being a young entrepreneur getting started with your business is not an easy task. You look for advice and options available. Moreover, there are so many tips for starting a new business out there that choosing the one to follow can get quite confusing. Of course, jumping into the entrepreneurial world can be a bit intimidating, as the market gets quite competitive. If your business does not perform well there are higher chances of startup failure. But the good news is that startup failure rates aren’t nearly that high especially if you use the right tactics to start off your business strong.
Eligibility Criteria for Startup Business Loan
To avail a startup loan for new business from Fullerton India, some of the eligibility criteria are as follows:
- You should be a resident citizen of India
- You should have a CIBIL score of at least 700
- Your business should have been operational for at least 2 years
- Minimum annual income of your business should be INR 2 lakhs
- Should be between 21 years to 65 years of age
Things to keep in mind when looking to apply for a Startup Business Loan
Startups looking to get such a loan should ensure the following:
- Make a crisp and detailed business plan.
- State clearly how you intend to use the loan amount in your business plan.
- Summarise the objectives and goals of the business along with a chart that will highlight the potential returns and growth of the venture.
- Give a clear approximation of the funds.
Steps for getting a loan to start a New Business
When opting for a business loan for a new business, there are certain requirements that must be met. These facilitate the process of acquiring the new business loan and serve as a checklist to see if the bank will suffer a loss if they decide to proceed with the loan.
- It is important to get one’s costs and finances in order before proceeding with any step. Understanding and reviewing the startup cost will help you understand the purpose for which the small business start up loans are being taken in the first place and in which direction will the capital be utilized.
- Next, the person taking the loan must require the related documents and registration forms to legally and officially apply for the loan. These documents are simple ones that recount the business plan, credit score of the company and other formalities.
- There are a number of different starts up business loans to choose from. Depending on the aim and goals of your startup, one needs to choose the right business loan for new business.
Documents required for a new Business Loan
- Identity Proof: for this, one can present their driving license, passport, PAN card, Voters ID card or even their Aadhaar card.
- Income Proof: the bank and financial statement for the last 2 years must be procured.
- Proof of Business Ownership: it is mandatory to have documents like a Sole Proprietorship Declaration or a certified true copy of Memorandum and Article of Association in order to show proof of the business and/ or startup for which the loan is being raised.
Lenders offering Business Loans for Startups in India 2021
1. Fullerton India Business Loan for Startup
With many entrepreneurs making their mark and moving ahead with path-breaking strides, startups are no longer a derogatory word, in fact, they have become the current buzzword.
At Fullerton India, we offer startup loan for new business to assist young entrepreneurs achieve their entrepreneurial dreams. You can avail a startup business loan if you are of a small or medium-sized firm for different requirements. Your requirement could be a working capital loan – to finance the working capital requirements during expansion or an equipment purchase loan – for purchase of new machinery or specialized equipment, or any other such expense.
2. Omozing.com
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 . 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.
Apply for Business Loan
Currently, we are engaging with the following offers:
- Unsecured Working Capital Loan
- Microloans
- Invoice Discounting
- GST Surrogate
- Revenue Based Finance
- Banking Surrogate
3. Bajaj Finserv Startup Loan
Bajaj Finserv offers instant business start up loans up to Rs. 45 lakh to meet all kinds of expenses required for the expansion and growth of your start-up. To support the growth of your startup, Bajaj Finserv brings to you Startup Loan, a business loan for new businesses. Startups having a business vintage of minimum 3 years are eligible for this Startup business loan in India. With this customized startup financing, you can meet various business expenses like overhead inventory, infrastructure cost, etc.
How can I improve my chances of getting a Business Loan?
- Make sure you improve your credit score.
- Choose wisely the lender from whom you wish to avail the business loan.
- Do not apply for multiple loans. If you have existing loans, make sure you clear the EMIs before applying for a business loan.
- Apply for a loan amount which you know you can repay on time.
- Keep an audited record of your financial statements.
- Make sure you check your credit score on a regular basis.