Get essential tips securing your business loan, spanning from meeting eligibility requirements to formulating a robust repayment plan.
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MSME, short for Micro, Small, and Medium Enterprises, constitutes the bedrock of India's economy. According to the FY23 annual report from the MSME Ministry, this sector contributes approximately 30 percent to India's GDP, accounting for over 40 percent of its exports and generating a whopping 110 million employment opportunities.
As a budding entrepreneur, you might possess a brilliant business concept but could be grappling with limited capital to initiate or expand your venture. This is precisely where MSME business loans prove invaluable.
Bajaj Finserv Business Loan can address the unique needs you may encounter when seeking funding for different aspects of your business, such as working capital, machinery, equipment, raw materials, marketing, expansion, and more.
Here are five useful MSME loan tips for young entrepreneurs.
Determine your loan requirement
Before obtaining the loan, clearly define the intended use for it. This approach ensures proper allocation of funds and ensures that the loan serves its intended purpose. For instance, if you acquire an MSME business loan with the aim of covering daily expenses but divert it towards business expansion, you may encounter difficulties in loan servicing due to unresolved working capital challenges.
With our business loan, you can get a loan of up to Rs. 50 lakh at an affordable MSME loan interest rate, for a tenure of up to 96 months.
Check your loan eligibility
Prior to applying for a business loan, it is essential to evaluate your eligibility. To avail of a Bajaj Finserv Business Loan, you simply need to meet a few simple eligibility criteria. You should be a self-employed Indian citizen aged between 24 and 70 years. Additionally, your business should have a minimum operational history of 3 years, and it's vital to maintain a CIBIL score of 685 or higher.
Keep all the necessary documents ready
While the demand for paperwork has significantly decreased in recent years, there are still essential documents that must be submitted. To apply for a Bajaj Finserv Business Loan, you need to submit the following documents:
- KYC documents - Aadhaar/ passport/ voter’s ID
- PAN card
- Proof of business ownership
- Other financial documents as required during the application
Maintain a good credit score
A credit score is a numerical representation of your creditworthiness based on your past and present credit behaviour. It ranges from 300 to 900, with higher scores indicating better credit profiles. A healthy credit score of 685 or more is mandatory for Bajaj Finserv Business Loan. The higher your credit score, the better terms and conditions you can get for your business loan.
Have a repayment plan in place
Repayment stands as a pivotal element within the loan cycle. Any issues arising during repayment can adversely affect your credit history, potentially hindering your ability to secure loans in the future. While devising this plan, it is necessary to have a clear understanding of your ongoing monthly expenses and subsequently determine the feasible repayment amount.
With a Bajaj Finserv Business Loan, you can handle your business expenses, whether they are small or large, with loan amounts ranging from Rs. 50,000 to Rs. 50 lakh. Additionally, you enjoy the convenience of selecting a repayment option that suits your needs, spanning from 12 months to 96 months.
By following these tips, you can not only secure the funds you need for your business, but also manage them effectively and efficiently.
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