Many businesses start off in a small way. An individual running a small eatery may open another one in a few years, and over the course of time be the owner of a large chain of restaurants. Of course, there’s a limit to how much you can expand by using your own funds. If you want to grow a business fast, you will have no choice but to look elsewhere for funds.
Luckily, banks have just the product for you if you want to expand your operations – and that’s a Business Loan. So what is Business Loan? What are Business Loan advantages and disadvantages?
Well, a Business Loan is a product created by banks specifically to meet the needs of businesspeople. In the past few years, banks have made it much easier for businesspeople to avail of such loans. So let’s look at Business Loan benefits, and how they can make your life so much easier.
Advantages of a Business Loan
- Quick disbursal: Banks will disburse a Business Loan quickly so that you don’t need to worry about operations coming to a halt or growth plans delayed because of a lack of funds. For instance, HDFC Bank disburses Business Loans of up to Rs 50 lakh within 48 hours to certain preferred category of customers, under its Business Growth Loan.
- Minimal documentation: One of the benefits of Business Loans is that you don’t need lots of paperwork to get them. In fact, some customers can get loans without any collateral, guarantor or security to meet their every need, from expansion to working capital requirement. You will also get doorstep services from some banks.
- Competitive interest rates: Because of the growing completion among banks, the interest rates on Business Loans are quite reasonable, so that you can take out a Business Loan without worrying about large repayments. Of course, interest rates that bank charge will vary from customer to customer, according to creditworthiness, tenure and the purpose for which the Business Loan is required. Interest rates can vary from 11.5 percent to 24 percent.
- Flexible tenures: You have the option of choosing the tenure of the loan. If you want to take out a Business Loan for a short period to meet working capital expenses, you can take a loan for a year. If you want it to expand your business, you can take out a loan for a longer period of time, like, say, four years.
Now that you know what is business loan and all its benefits, it’s definitely worth your while to go in for them. After all, we trust you to scale new heights. This Business Loan will allow you to break any financial barriers and give you the financial push to make your business vision come true.
Are you looking to apply for an HDFC Bank Working Capital Loan. Click to apply now. With this loan, you can get the best benefits of quick capital, no collateral and industry’s best interest rates.
Wondering how to get a Business Loan? Click here to get started.
* Terms & conditions apply. Business Loan disbursal at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.