How to Get a Business Loan With a Low-interest Rate?
Any business enterprise entity must have its cash flow and working capital replenished from time to time. Working capital is required for running business operations uninterrupted, which leads to more profits. To maintain cash flow, enterprise owners need loans at affordable interest rates, especially those who run small businesses. However, unsecured business loans are better options as they can be availed for any business purpose in a jiffy. Some of the activities where funds from business loans can be used are:
- To buy new machines or equipment
- Recruiting new staff
- Pay salaries for existing staff members
- Business expansion
- Inventory maintenance
You might be pondering how to get a business loan at a lower interest rate. Before that, you must first choose the best lending institution to avail of a business loan as it will directly impact how much business loan EMI you might have to pay as repayment cost. Based on the loan amount, interest rate, collateral-free, repayment tenure, ease of applying, processing time, etc., online lending institutions like Clix Capital are the best source of securing a business loan. So, let’s discuss some insights on how to get a business loan at affordable interest rates.
Tips to improve the chances of availing business loans at lower interest rates
- You must maintain a good loan payment history and prove your financial stability
- The Business should be in operation for at least three years
- Business’s CIBIL Score must be 700 or above
- Business should have a CMR rating of up to 6
- The business should have an annual turnover of at least ₹ 1 Crore
- Make sure all business documents are in order and audited by a CA
Features of business loans with low interest rates
Easy Application
If you apply for a business loan online on the Clix Capital website, you will save time to visit the branch of the lending institution.
Large Loan Amount
If you fulfil the eligibility criteria, you can avail of a business loan in the range of ₹ 5-50 lakh, which is enough to meet all your needs and run the business smoothly towards profit.
Flexible Repayment Terms
After the loan is credited to your bank account, you can repay the business loan EMI in 12-36 months. Most NBFCs offer flexible repayment tenure, and the choice is left to you.
No Collateral Required
The best thing about unsecured business loans is that you don’t need any collateral or security.
Minimal Documents Required
Online NBFCs approve business loans with minimum paperwork. The documents usually requested are:
- Completed online loan application form
- ID Proofs like
✔ Aadhaar Card
✔ Passport
✔ Driving Licence
✔ Voter’s ID Card
✔ PAN Card
- Address Proof like
✔ Aadhaar Card
✔ Passport
✔ Voter’s ID Card
✔ PAN Card
✔ Driving Licence
- 6 months of Business bank account statements
- Audited financial statements of the business for 2 years
- Proof of business running for at least 3 years
- ITR of previous 2 years
- Profit and loss statements
Eligibility for availing business loans at lower interest rates
- Must be a citizen of India
- Age limit- 21 years at the time of application and 65 at the end of the business loan EMI payment term
- A minimum of ₹ 1 Crore of annual turnover is required.
- The firm should be running as a proprietorship, company, private limited, closely held non-listed company, or partnership.
- A CIBIL Credit score of 700 or more is needed.
- A CIBIL MSME Rank (CMR) score of up to 6
- A company must be running for at least 3 years
How to get a business loan?
Consider applying for an unsecured business loan online for a hassle-free process. Here are the steps:
- Go to the Clix Capital website using your smartphone or laptop
- Select Unsecured business loan on the home page
- Enter your phone number and click ‘Apply Now’
- Enter your phone number
- Submit the details along with the OTP received
- You’ll get a call from the Clix representative for in-person verification
- Once verified and approved,the loan will be disbursed to your account quickly
Using the above tips and information, you can easily apply for a business loan and fund your needs to improve your cash flow and attain new horizons.
Author Bio
Amaira Sharma
Amaira sharma is finance expert and former business growth strategist who has more than 8+ years experience in the industry, now she helps others to get better financial stability and standards. She loves to write useful tips on personal finance and businesses.