Small and medium business Enterprises throughout recent times andthey need shown pros. and Grow Your Small Business loan.
This growth also brought a rise in the competition .enterprises are now bringing new strategies to stand out among their contemporaries. This, in turn, resulted in a flow of the business loan program. These business loans function a fundamental capital for alittle business.
Currently, SME owners can benefit from sources of capital in two forms, unsecured business loans and SME loans. These loans have some differences and some similarities, but the end goal of sanctioning these loans is to satisfy the business’s demand for acquiring assets.
These business loans are advantageous for several reasons. Apart from the obvious benefits, when a business owner uses the correct skills to their advantage, these loans can significantly multiply business earnings. A critical aspect of this skill is timing correctly.
Business loan, the festive season, and everything in between
The festive season is the right time to flourish in a market. This time offers some of the highest business sales and spikes up the earnings. This rise is especially beneficial to small and medium business enterprises becau se they can easily profit from the growing demand in the market and cash in from the sales.
But how does a business loan correlate with the festive season?
1. The answer to this is simple. Small and medium-sized businesses are hardest hit by market volatility, and this effect is compounded when the business owner consolidates all of his finances into the business. This can lead to a gradual depletion of owner’s capital. Unsecured loans and SME loans can help by providing capital support, and even if a business experiences downward fluctua tion, the business owner will not steal its wealth.
2. Another aspect of the holiday season is an increase in demand for products and services. The rate of sale and purchase remains at an all-time high during the festive season. Thanks to this greater demand, business owners are trying their best to increase production in Business. This increase in production certainly requires additional capital to prepare a supply of basic equipment and machinery. A business loan serves as a healthy alternative for this. With the help of an unsecured loan or SME loan, there is no need for the business owner to invest from his/her pocket.
Unsecured loan or SME loan?
Unsecured loans do not require a pre- sanctioned mortgage. The lending authority does not require collateral in exchange for loan approval if it is not secured. SME loans, on the other hand, are unsecured business loans for small and medium enterprises. These loans are aimed to help the emerging start new businesse by supporting them with the initial capital sum.
The festive season and different SME sectors :
The holiday season has the following influences on different areas of the business:
- Commercial Sector: The commercial sector peaks during the holiday season as demand for electronic devices and other technology products increases. Therefore, it is beneficial for SMEs in the retail sector to increase their production during the holiday season. Unsecured business loans help retailers increase their production budgets and use them for advertising or commercial marketing.
- E-Commerce Sector: This sector has probably been hit the hardest by the volatility caused by the holiday season. Due to the competitive e-commerce market, various online business sites offer sales and therefore require more production. In this way, obtaining financing funds will help business owners bear the costs of increasing production.
- Hospitality: The holiday season brings the holiday season for people, which in turn leads to a slight increase in hospitality and restaurants. In this way, loans to SMEs will also benefit the sector to support increased customer burdens.
- Industrial Sector: As the main market demand increases during the holiday season, the wholesale market also increases. There is an immediate need for additional capital to meet increasing demand. In this way, unsecured loans will be useful when needed, especially during high season such as festivals.
Looking at the trends in the business sector, it is clear that SME lending is the main agent for these sectors to develop and generate more profits during the holiday season.
Unsecured Business Loan:
the perfect boost for your business during this festive season!
If you’re alittle business owner and you’re looking to expand your business’s productivity and earnings, then the festive season is that the right time to shine. you’ll make the most of the festive season by applying for an unsecured / SME business loan.
Features of an SME/Unsecured Loan
•The main features of SME loans are described below:
- An SME is oriented to lend financial help to the little and medium business enterprises.
- Unsecured busi ness loans are often related to short loan repayment pe riods. Most of the credit institutions like banks and NBFC offer terms of two years.
- The SME loan doesn’t have a pre-requisite of loan collateral or mortgage for the loan’s approval.
- Several SME schemes also go with a pre-payment penalty just in case a business owner wishes to return the loan amount before completing the repayment tenure. This function may vary counting on the credit institution.
- The business owner can avail of the SME business loans at the starting rate of Rs.50,000.
- The interest rates of SME loans are generally more than the secured business loans.
Benefits of SME/Unsecured Loan during festive season:
- One of the apparent benefits of availing the unsecured business loan is that it allows the business owner to optimize the sales during the festive season. It provides a financial umbrella for the little business. In this way, the owner can expand production without hesitation.
- The SME loans also provide the business owner with some tax exemptions which will be availed on the business’s returns during the loan period.
- Several lending authorities also offer a policy on SME loans where the business owner can enjoy extra money benefits when he/she refers to the SME scheme offered by the lending authority to other business owners.
- SME loans allow the business owner to make up their business assets by acquiring more assets or equipment and machinery.
- Unsecured business loans relieve the headache for business owners of pledging their personal or business assets for loan approval.
- Such style of loans are available handy for a business to satisfy its short-term goals as these loans’ policy period is brief . this can be advantageous during peak seasons of business sales just like the festive times.
- The application procedure for SME (Business) loans is short and sweet.
- As there’s no need for collateral, these loans involve a lot less paperwork and documentation.
The procedure to use for an Unsecured Loan or SME loan during the festive season:
Applying for an Unsecured business loan may be a hassle-free and convenient process. you’ll also apply online for an unsecured loan. The eligible candidate may follow the below step for applying:
Offline Method for application:
- Head over to the office of the bank or NBFC from which you want to avail of the business loan.
- Fill within the loan application form.
- Submit the applying form with the required documents.
- The loan application will then select verification and subsequent approval.
An online method for application:
- After deciding the SME scheme best suited to your business goals, you must visit the lending authority’s official website.
- Next, select the SME Loan scheme of choices and go- ahead to complete the loan application form.
- Enter the credentials of the applying form.
- Submit the applying form by attaching the required documents required for verification.
- After submitting the applying form, you’ll pay the extra fee for applying, then the applying proceeds further for verification.
- If the applying form credentials are authentic, then the applying is approved, and also the loan shall be sanctioned.
Documents required for applying for SME Loan:
Candidate’s Identification proof: Aadhaar Card, Voter ID, PAN, or Driver’s license are valid documents.
Candidate’s residential address proof: Aadhaar Card, Voter ID, amenities bill such as electricity bill, and telephone bill are considered valid documents.
Things to consider before applying for an Unsecured Loan during the festive season:
There are some important points that the business owners should keep in mind before they consider an SME loan:
It is important to plan out the objective of your business loan. The SME owner should determine their agenda or strategy regarding the loan’s utility in his/her business during the festive season. Keeping an idea about the end goal of the business earnings that are to be projected during the festive season helps determine the budget and the corresponding amount of loan required to fulfill it.
Next comes the correct choice of the authority from whom the loan is taken. The bus iness owner needs to go through the complete terms and conditions of the unsecured loan scheme offered by the bank or the NBFC. These lending institutions are often strict on their eligibility criteria, which should also be kept in mind. The business owner should select that lending authority, which falls in line with their business objectives and loan requirements.
Business owners should also take into account the interest rates, market risks, and additional fees of the loan scheme.
The lending authorities also consider the reputation and operational efficiency of the business before sanctioning the loan. That is why the business owner needs to create a strong business profile, ensuring smooth cashflow evidence and an authentic portfolio.
A common error on the part of the entrepreneurs applying for a business loan occurs during the application process, where they fail to provide optimum documents with their application. Several loan applications get rejected because of inefficient documentation. Therefore, the business owner should keep a strict eye while submitting his/her documents.
Other ways to amp up your business during the festive season:
Although applying for an unsecured business loan is a smart and perhaps the most convenient strategy for business growth during the festive season, there are some other methods that a business owner can app ly to enhance their business performance.
• Layout your plan of action: For a business to enhance its performance during the festive season, it is important to have an idea about the dates and time duration of the festive season. This way, the entrepreneurs can strategize and implement those strategies well in-time and be prepared.
• Festive sales and discounts: What comes as a major attraction to people during the festive season is the festive sales. They are on a hunt for cool deals and amazing discounts. Many of them even wait for the festive season to make purchases. Hence, having a sale or offering a discount on your products will help attract more customers during the festive season.
• Advertise: Popularizing your business through increased marketing during the festive season helps in drawing new clients to your business. It is smart for the business owner to seclude a separate budget for marketing and advertising at the beginning and throughout the festive season. This marketing should be done both on telecommunication as well as on social media.
• Enhance your presentation: Today, the businesses are judged as per their presentation. The customers are more attracted to a business with an efficient appearance. Thus, during the festive season if the business owners add some festive touch to the business, which makes the store or the online website appear more inviting. Remember that the appearance of your business should reflect you and your business’s personality.
Business Loan For Women
India woman’s is witnessing a phenomenal growth in its small and medium (business) enterprise sector.
A part of this success story is being the country’s women entrepreneurs. Woman’s entrepreneurs have found it is hard to secure business finance thanks to variety of social stigmas.
However, the recent evolution in business finance, and the emergence of FinTech platforms has made it easier for women entrepreneurs to get business loans Indian multiple Banks.
Today, business loans for ladies also are enabling self-employment in rural and concrete India.
Business Loans for Women!
Lendingkart may be a leading FinTech business finance provider in India. B eing a tech-enabled platform, Lendingkart’s business loan approval is predicated on business analytics and large Data technology. This means there’s no bias whatsoever when approving or disapproving a business loan application. The whole processing is based on solid data and financial health of an enterprise. Hence, Lendingkart may be a great platform for ladies entrepreneurs searching for a business loan. The entire process is a reliable, quick and allows personalized loan terms for individual businesses.
1.Avail loans up to ₹ 2 Crore.
The ticket size of our business loans for women starts at ₹ 50,000 and goes all the highs way to ₹ 2 Crores. It increases the probabilities of a loan approval for ladies entrepreneurs searching for a business loa n.
2.An online business loan for women
Lendingkart processes business loan applications completely online. This makes it quicker than applying for a bank loan and also makes it completely impartial if it includes an agreement. The web loan approval process also enables us to offer same-day loan approvals.
3.Business loans for women in 3 days.
Once you upload the requirements documents online, we complete the verification process within 72 hours and disburse the loan funds in your business’s banks account. Hence, enabling fast execution of your business plans.
4.Collateral-free business loans for women!
Lendingkart’s business loans for ladies don’t require any quite security and thus, give women entrepreneurs a veritable financial vehicle to grow their enterprise.
5.Competitive interest rates.
As we use data analytics for calculating all aspects of a loan offer, our business loans for ladies go with the simplest available interest rates for your category. The method works with none manual intervention and hence is free from any bias or mischief.
7.Ample time to repay.
Lendingkart business loans for women are offered with an extended repayment window of 1 to 36 months, adjusted as per the principal amounts. Here is additionally a choice to repay the loan early if your enterprise is doing very well, through bi-weekly installments.
No Hidden Costs.
Lendin gkart offers business-friendly finance for ladies entrepreneurs, which suggests we’ve kept the acquisition costs to a bare minimum. Lendingkart business loans for women come with a simple processing charges of 2-3% based on the approved loan amount, and that is it, there are no other costs involved.
8.No penalties on early repayment.
Taking our business-friendly loan terms a step further, we offer the ability of zero prepayment penalties. It allows you to repay the loan in full, any time after servicing the first EMI. There are not any charges, fees or penalty amount for doing so.
Benefits of Lendingkart’s Business Loans for women
Lendingkart may be a leader in FinTech finance in India, offering loans across India for women entrepreneurs and little business owners. Here are the benefits of our business loans for women.
1.Unbiased process for loan approval
At Lendingkart we believe in the economic progress of the country, and its people without having to give in to social stigmatization related to gender and race. Our application, approval, verification, and disbursal processes is completely supported your entrepreneurial skill. In case, a bank or NFC isn’t approving your business loan for any of the above reasons, you’ll apply with us a and find a fast business loan approval.
2.Put your plans into action
With a super fast turnaround time of 3 days, you can put your business plans into action without having to wait for weeks or months. The quick business finance offered by Lendingkart also ensures that you just don’t miss out on critical business opportunities as they are available your way.
3.Be your boss
Lendingkart business loan for women assist.you retain controls of your enterprise and keep your valuable assets protected. Our loans are unsecured. So, you do not need a collateral to apply for one, plus, unlike some invoices financing lenders and banks, we do not interfere in the running of your business at all. So, you are in controls your business always.
4.Reduce cash-flow risks
Lendingkart business loans also allow women entrepreneurs to reduce risk related to fluctuations in cash-flow. This is very true for relatively young SMEs and startup ventures. A business loan brings order to your capital fund as you start building the customer base and attempt capital formation.
5.Become eligible for higher funding
Lendingkart reports all of your transactions to vary credit bureaus, thus helping in creating credibility and goodwill for your business among leading investors and lenders. Whic h successively , can open up the probabilities for getting higher funding or commercial partnership opportunities for your budding enterprise.
Business Loans for Women: Fees & Interest Rates
Customized Interest Rates–15 to 27%
Loan Tenure–up to 3 years
Eligibility Criteria ₹ 90,000 turns over for 3 Months
Loan Amount–₹ 50,000 – ₹ 2 crores
Eligibility Criteria for Lendingkart’s Business Loans for Women
Lendingkart has kept the eligibility “&requirement’s to the bare essentials so as to processing business loans for ladies faster. We don’t require too many documents or unnecessary paperwork which will hold-up the loan approval processes.
1. An established business that has been in operations for quite 6(Six) months.
2. A minimum turnover of ₹ 90,000 or more within the 3 months preceding your loan application.
3. The business shouldn’t fall under blacklisted/excluded list for SBA finance.
4. The business shouldn’t fall under blacklisted/exclud ed list for SBA finance.
5. Trusts, NGOs and charitable institutions aren’t eligible for little business loans.
If you’re unsure if your business falls under a restricted category or location, you’ll contact us to verify your eligibility.
Documents Required for a Business Loans for Women!
Bank statement (12 months)
Business registration proof
Proprietor(s) PAN Card Copy
Proprietor(s) Aadhar Card Copy
We accept any of the following as a Business registration proof
1) Business Registration Certificate
2) GST filing
4) Trade License
5) Drug License
7) VAT registration
3 simple steps at your Business Loans for ladies
1. Submit Application
Simply enter your personal, business, and financial info to receive a Business Loans for ladies offer.
2. Upload Documents
Upload digital copies of your documents during a single step process for verification.
3. Get Sanctioned
Receive your Business Loans for ladies approval and disbursal within 3 working days.
Problems Faced by Woman Entrepreneurs in India,
Women entrepreneur in India face challenges that are singular to the country, such as,
1. Social stigma
The patriarchal setup of the Indian society puts enterprising women at a disadvantage by raising questions about their ability and competitiveness. While Indian women have broken these stigmas time and again, society is yet to witness a comprehensive transformation of mindset when it involves promoting women equality in social, economic, and political life.
2. Aggressive behavior of peers
The theme of bias against women isn’t limited to society, but also extends into the financial sphere, where women entrepreneurs are often patronized by their peers. Often such aggressive and assertive behavior will be detrimental for a woman’s enterprising spirit and business vision.
Women entrepreneurs are such an isolated breed at the instant that it bec omes difficult for them to join business networks, notwithstanding the aforementioned disadvantages of working during a male-dominated environment.
4. Personal priorities
very often , an enterprising woman is additionally liable for managing the household. This puts her at an obstacle as compared to male entrepreneurs when it involves devoting time to business development.
5. Business mindset
Given the sheltered way within which most Indian women are mentioned , it takes time for them to become a shrewd business opera tor. Sometimes, a stakeholder or competitor may take undue advantage of a lady entrepreneur’s trusting nature.
6. Safety and security
a serious problem faced by most ladies entrepreneurs in India is that of non-public safety and security. Their work may involve odd working hours, and frequent travelling to new places, which always warrants caution.
How business financing helps women entrepreneurs overcome business losses
Corporate finance not only helps women grow their businesses by streamlining manufacturing processes, eliminating disruptions to cash flow, and expanding into new markets, but it also battles many of the shortcomings in the standards, they face. Women entrepreneurs in India. Here is how a Lendingkart commercial loan for women enables an Indian woman to challenge the social and economic norms.
1. With economic independence comes social value and appreciation. A bank commercial loan from Lendingkart enables success for your enterprise and hence help in breaking the social stigma that accompanies your position.
2. economic process also attracts investors and heavy commercial partnerships for your enterprise, shutting down the naysayers in business circles. Hence, enabling a future filled with exciting business opportunities.
3. successfully comes the arrogance to interact with fellow business owners and approach bigger investors/clients. So, the success brought by business finance also extends to your social and financial networks, and further contributes to the expansion of your enterprise.
4. As your enterprise grows, you’ll expand the management process, relieving yourself of non-critical duties. Which successively gives you time to balance your personal and work life.
5. The experience gained by expanding your enterprise also brings about shrewdness and resourcefulness as you seek to maximize the gains from a commercial loan or investment.
6. Finally, business finance also enables you to secure a far better , safer work environment for yourself and your women employees. In this way, you contribute to the general safety of women and make your company a shining beacon of inspiration for fellow entrepreneurs.
Grow Your Small Business This Festive Season with an Unsecured Business Loan FAQs:
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