The state of Maharashtra has emerged as one of the prime financial hubs of the subcontinent. External financial assistance is part and parcel of the modern business landscape, with loans now considered as a point of investment for better future ROI.
Most business loans in Maharashtra these days are availed by the manufacturing industry other than the IT-heavy sector.
One major reason behind such a rapid rise of successful SMEs and MSMEs is because of the easy availability of MSME loan from multiple financial institutions.
Other than lower business loan interest rates, such loans are available across easier repayment tenors and flexible terms, therefore, helping a business owner with an efficient flow of revenue.
In today’s globalised and tech-centric age, the rate of new business ventures in the country is at an all-time high and on the rise. Business financial loans play the crucial game changing role for such small business and for the entrepreneurs, providing substantial finances up front as per requirements.
There are a few essential features that a business owner should keep a track on while going for business loans:
What to look for?
- Understanding the terms and conditions –
It’s imperative that under no circumstances an individual should enter an agreement with any financial institution without having a proper knowledge on the loan terms and conditions.
- Frequency and flexibility of payment deadlines –
A person should always have a proper idea on how to repay the loan availed. It is advised to plan your finances according to the EMIs you are liable to pay for the loan beforehand.
- Compare terms with other lenders –
It’s always better to check and have prior knowledge of which financial institution is providing a better interest rate as well as other beneficial loan terms before signing up with one.
What are the challenges?
There are some specific set of challenges SMEs face, while applying for financial loans, viz. –
- Cash flow:
Making a proper budget of the inflow and outflow of cash is paramount for any business to run smoothly.
- Staying in competition
Considering the modern digital age, SMEs need to constantly utilise and re-invent their skill sets to remain in the competition.
- Focusing on the right target audience
Businesses often fail to grow even after showing a lot of promise in the initial phase because of not satisfying the needs of the customers. Hence, it’s imperative that business should have a clear concept of their product or service on offer and the target customer.
Ensure the following criteria before applying for business loans in Maharashtra
There are some essential but easy-to-qualify eligibility criteria of business finance which you need to meet for approval:
Business loan eligibility:
- A person should be between 25 to 55 years of age
- Should have a successful running business for at least 3 years
- Submitting proper documents of income tax returns
Documents:
For any loan application approval, Document verification is very important task that may be cause for your loan request approval or disapproval. It is must required for anyone to have a look on required documents beforehand while applying.
Basic documentation prerequisites include those
While setting up a small business there are a lot of issues and mistakes which may happen. There are certain bad decisions which every small business owner should avoid, which you should too.
Making big purchases:
It’s very important for any business to compare and study sales before buying any tools and machinery.
SMEs should not calculate their sales trends on seasonal factors. It can hamper long-term business plans as well as short-term goals.
Business structure:
It’s crucial that before starting a business one should have a rough figure of spending and buying of business assets
Setting an office ambience is extremely important as it sets the atmosphere for better or less productivity.
A business can come across multiple such financial requirements, necessitating an external monetary assistance to benefit the same. Leading NBFCs provides business loans with flexible repayment tenors and attractive interest rates.
Taking advantage of the market
One of the prime aspects of any company is to make the right calculation whether to produce or hire more, in the peak seasons. Thus, it helps in the overall growth of the productivity of the company and henceforth assists the growth of the company in the long run.
Considering the business areas that boomed in 2018, 2019 is expected to be nothing short of a repeat of the same.
Easier availability and better terms to business loans in Maharashtra is typical for the intrinsic growth of the whole sector.
