Business loan in Ludhiana – Simple Tips for Getting Approval Fast

Ludhiana has been ranked as one of the best business environment between 2009 to 2013, by the World Bank. Being called as the “Manchester of Punjab”, Ludhiana is evolving as one of the biggest industrial giants. Apart from that, it has become one of the busiest Real Estate sector for NRIs to invest. It is an excellent market for the entrepreneurs looking to start a manufacturing business. The place has an ample quantity of easily procurable raw materials to open up a factory or plant. Franchises are also opening up speedily which gives an opportunity to build and expand an already popular brand. It keeps your current customer base and increases the loyalty along with working capital operations. Availing business loans in Ludhiana can help your business give an edge over its competitors by providing your customers something unique and different. NBFCs like Bajaj Finance offers affordable small business loans in Ludhiana up to a maximum of Rs.30 Lakh on an attractive interest rate of 18% and onwards. How to get your business loan in Ludhiana approved faster Preparing a well-developed business plan is the foundation which you should lay out to convince the lending institution that your business is worth their funding. It should clearly explain your primary objective, how you are going to generate revenue, and strategies to advertise it. For some lenders, your revenue generating sources are important for the institution so that they can estimate your repaying capacity. It is equally essential have a repayment plan in place to explain how you are going to repay the loan amount back, properly in the plan. Apart from the plan, it is crucial to ensure that you have all the documents verified. Lenders need to know the validity of your business by producing the proof of business entity, income tax returns of last few years, and audited reports, bank and financial statements, and your identity proofs. This increases the lender’s confidence in you. The loan amount is highly dependent on your business’ cash flow. Hence, if your business has a history of higher cash flows, you might be able to get a bigger loan with lower interest rates. Whereas, it is the opposite scenario, in the case of weak inflow of cash. Therefore, it is vital to estimate how cash flow works in your business, before you apply for a loan. Credit worthiness is another factor which is considered by the lenders before they approve a loan. It depends on your credit score. Credit score is determined how many loans you have taken in the past and how early you have repaid them. If you have paid all the loans on time, your credit score increases, whereas, if you were unable to pay them in time – credit score decreases. You also need to assess the risks which lenders take into consideration. These risks are associated with your accounting system, defaults in paying the loan back, lower vintage, or even an irregularity in generating a stable revenue for a longer time. Many lenders consider some important parameters which are called 5 Cs, these are – repaying capacity, additional capital, present business condition, collateral, and character of owner. Apart from all these, having a good relationship with your lender can also prove to be highly beneficial. It is important to have them in loop because they can be very resourceful when you want to approve a business loan. They have a lot of power and their support can be a big difference in rejection and approval of a loan. NBFCs like Bajaj Finserv offers business loans for small and medium enterprises up to a maximum of 30 Lakhs. Moreover, you only have to withdraw the funds which you need at a time and the interest is charged only on that amount. It helps in reducing your EMIs by almost 45%. Additionally, there are no prepayment charges. With pre-approved offers on Bajaj Finserv business loan, you can get your loan application approved in an instant. To know your special pre-approved that the NBFC has for you, click here.