Business Loans
Financial Flow is the lifeblood of any successful organization. Most businesses will need a large amount of working capital to start up a new business or enable the rapid growth of an existing business. Scaling up always requires an influx of finances.
This is why we go to all lengths to ensure that we can disburse a loan that can help you take your business to the next level. Business loans are very special to Andromeda and we have been helping our customers scale to new heights of success by helping them finance their dreams for their enterprises.
While a person is given on a personal capacity and income, a business loan is given based on the company’s income and capacity and is given in the company’s name.
Business loans are categorized broadly into the following 2 segments.
1. Unsecured business loans – 3-year term loan for proprietorship, partnership, private limited companies, and limited companies based on a sound balance sheet.
2. Secured business loans – Working capital funding in rupees as well as foreign currency for proprietorship, partnership, private limited companies, and limited companies
Business Loan Eligibility Criteria
Most banks have a common set of parameters that they evaluate loan applicants with, but what exactly these parameters depend from bank to bank.
Age
Most banks will disburse business loans to individuals aged 24 to 65 years.
Current Business Experience
Banks will prefer that your business has been showing stable signs of growth at least for the last 3 years. If you can show sustained billing and revenues and top it off with profit, getting a business loan should not be a problem for you. Some banks give a loan amount of up to 60 to 80% of your median annual profits.
Total Business Experience
A bank will prefer if you have been engaged in sustainable business for at least 5 years to consider giving you a loan. Your diversity in terms of business experience and so on along with good results will help you acquire your business loan.
Documents Required
- Identity Proof
- Address Proof
- Bank Statement (Latest 6 months)
- Latest ITR along with other relevant docs like Balance Sheet, P&L, Audit Report (Certified by a CA)
Tenure
Business loans range from min. of 1 year up to a max of 4 years
Processing Time
The processing of the loans usually takes 4 working days after all the documents are submitted.
Pre-Payment
You can pre-pay the loan after repaying a min. of 6 EMI’s. Foreclosure charges would be applicable as per the bank’s terms and conditions.You can make a part pre-payment with a minimum amount of Rs.50,000 after 6 months from the date of disbursement of the loan. This part pre-payment can be made only once in a financial year.
If you have a query regarding any kind of loan, please fill out this query form in order to get in touch with our customer service representatives.