How Can A Business Loan Benefit Small Shopkeepers In Faridabad?
A shopkeeper in Faridabad may require funding during different phases of his business, such as while expanding operations, buying extra inventory, or recovering from losses. However, there would come a time when the shopkeeper’s own funds would not suffice and he would require additional funding.The shopkeeper would try to use all the available resources in the best possible way but they may not seem to be enough. And in such situation, a small business loan for shopkeepers in Faridabad may seem the best option available.
Acquiring a business loan from your bank may seem to be the best option. But historically, only a few fortunate shopkeepers get to avail a business loan for banks. The major reason is the unavailability of the collateral as the banks mostly offer collateral business loans.Having said that, this scenario in India is changing and the major reason for it the availability of collateral free business loan by NBFCs. Many governmental policies and schemes are also favouring the SMEs and promoting them in their growth.
So, let us explore the ways in which a small business loan may help the shopkeeper and turn to be beneficial for them.
There are different types of business loans available in the market.The various business loan offers for shopkeepers include machinery loan, capital loan, working capital loan, term loan, and flexi business loan. All the types of business loans are designed to meet the different needs of the shopkeepers. The shopkeepers may choose to avail a business loan according to their specific and different needs.
The flexible nature of the business loans is reflected in the flexible repayment tenure option as well. The lending institutions these days understand the complexities involved in different businesses and therefore, offer different business loan repayment options. The usual repayment period ranges from 12-24 months. The borrowers also get the option of increasing or decreasing EMIs as per his financial conditions. In fact, some lending institutions also do not levy any penalty on the pre-payment of the business loan.
Business loan rates in Faridabad
The business loan rates in Faridabad for shopkeepers are the best in the market. The business loan interest rates are not only dependent on the loan amount, but also on the repayment tenure and the financial condition of the company. The CIBIL Score of the shopkeeper also plays a vital role in deciding the interest rate and the business loan amount. The other costs involved in availing a business loan include processing which is usually nominal and one-time.
A small business loan for shopkeeper is also beneficial in terms of tax benefits. One of the sections of the Income Tax Act state that the percentage of the profit used for repaying the business loan is exempted from the income tax to be paid.
Grow Your Business
The essential needs of any business include finance, technology, and manpower. And among all these needs, finance ensures that the other two needs are met on time. Thus, the required cash flow is crucial to meet the expanding needs of the business. With a business loan in Faridabad, you can expand your business, hire new staff, increase inventory, or even open a new shop. The owners have the freedom to the use the business loan finances as per their preferences.
The easy availability of the loan for business without collateral allows the shopkeepers to have access to a business loan. This makes the shopkeepers sustain their ventures with the help of additional funds. And the online application process and business loan eligibility calculator by the lenders further make the business loan availing process much easier for the shopkeepers.
Terms & Conditions
The terms and conditions set by most lenders these days are easy to fulfilensuring that most shopkeepers get easy access to funds. The business loan eligibility is also easy to meet and the business loan documents are very minimal.
Now that you know how a small business loan in Faridabad can be beneficial for a shopkeeper, you too can avail it. However, it is advisable that while availing a business loan in Faridabad, the lending institution must be chosen wisely. The business loan application process and the disbursement time should be taken into consideration in addition to the interest rates.