The SME sector in India contributes a significant chunk to the Indian economy, with contribution across industries.
Some industries with widespread SME presence include the likes of manufacturing, service, food processing, IT, infrastructure and chemical industries.
Also, SMEs occupy around 95% of the industrial units and employ over 40% of the country’s workforce while contributing approximately 6.11% to the manufacturing GDP.
Collectively, SMEs and MSMEs are deemed essential for the growth and development of the country.
Resultantly, the Government of India is now actively encouraging more individuals to start a business venture to become self-reliant and to generate quality employment opportunities.
Several government-sponsored schemes and credit-linked facilities have been introduced to boost SME culture across the country.
Likewise, several lenders now provide financial assistance to small and medium business owners to help promote SME growth in places like Delhi and other regions of the country.
As per convenience and requirement, business owners in Delhi and other places can avail the required financial aid for infusion in the business.
Nonetheless, to do the same, they need to become familiar with how to avail a suitable business loan in Delhi or any other city in India.
Things to look for in a business loan for suitable capital infusion
Here’s a list of things to check before availing a business loan in Delhi or otherwise.
- High funding value
The high loan value is a must to boost and expand an existing SME. It does not just help to meet diverse business funding requirements but also improve the quality of business operations significantly. Individuals must assess how much working capital their business needs and similar other financing requirements to understand if the offered loan amount is sufficient. Nevertheless, over-borrowing should be avoided.
- Unsecured credit facility
New SMEs are subject to a higher risk of operating in a new market. In such a scenario, availing a loan against security may prove more damaging than useful.
To ensure that one avails adequate financial assistance without putting business assets at risk, SME owners should look for an unsecured business loan in Delhi or any other region in India.
- A reasonable rate of interest
To ensure the chosen business credit is convenient to repay, individuals must look for a loan option that comes with a competitive rate of interest. Also, they should compare the processing charges and other fees applicable as they tend to add on to the loan burden significantly.
- Purpose of financing
Typically, lenders offering a business loan in Delhi or any other city helps fulfil several funding requirements like –
- Increasing cash flow
- Workspace renovation
- Machinery and equipment purchase or repair
- Purchase and installation of the latest technology
- Leasing bigger office premises
- Hiring new talent and up-skilling staff
- Raw material purchase
- Replenishing stock
- Expansion of project or scale of production
Regardless, individuals who intend to avail funding to be used beyond business requirements may opt for a personal loan for self-employed.
- Customisable credit
Individuals who plan to meet specific requirements of their business venture can avail a customised business loan in Delhi or any other city as per their funding needs.
Reputed financial institutions offer tailored business loans like – working capital loans, SME and MSME loans, machinery loans, business loans for women, personal loan for self-employed, etc. customised for varying funding needs of businesses.
Leading lenders like Bajaj Finserv extend such funding against minimum eligibility requirement.
They also extend pre-approved offers to their customers to make the overall funding process less cumbersome and more time-saving. Typically, such offers accompany several financial products like business loans, personal loans, etc.
While at it, SME owners can look forward to becoming familiar with how business loans help to keep businesses financially healthy to manage the same effectively.
Besides these, business owners should look for a loan option that comes with easy-to-meet eligibility criteria so that they can avail the required funds conveniently.
Typically, leading NBFCs consider individuals between the age of 25 and 55 years with a business vintage of at least 3 years eligible for a business loan in Delhi or any other city they extend these loans to.
Other than that, one must also keep handy the required set of documents to ensure a hassle-free application process. You can opt for an online application for streamlined financing.
