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Top 5 ways to improve your chances of getting an sme loan.

Improve your chances of getting an collateral free sme loan in India. To get best unsecured business loan in India <br>visit: www.niyogin.in

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Top 5 ways to improve your chances of getting an sme loan.

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  1. Top 5 WAYS TO IMPROVE YOUR CHANCES OF GETTING AN SME LOAN

  2. If you are thinking of applying for an SME loan for your business, the process isn’t that hard anymore, thanks to FinTech coming into the picture and making the entire process less cumbersome. • While all of the processes are from the lender point of view and there isn’t much you can do as a borrower, there are a few steps you should take to ensure your loan is not denied. • You don’t want to go through the process of applying for the loan only to realize you are being rejected.

  3. Believe in your business and growth • Many borrowers borrow a loan just t pay off existing debts or to continue with the same scale of inventory and working capital. • If you are looking to borrow, one of your main criteria’s should be to grow the business with the money borrowed and not pay off existing debts. • While filling out the application form or the meeting for your loan, be confident about your business, know all the details right from paperwork and compliance to the marketing of the product. Being extremely knowledgeable about your business can go a long long way.

  4. 2) Submit an accurate application • It sounds very obvious, yet quite a few numbers of applications that lenders receive do not contain the accurate information or some information is misinformed. • The information you supply in your application will be used to determine its legitimacy. You’ll include the names, dates of birth and home addresses for all business owners and your company registration number. • If these details are inaccurate, the loan application will be refused, and you will have to start over again.

  5. 3) Review your Credit History • As you know most loans are approved on the basis of viability, repayment capacity, and your CIBIL score. • While for a business loan an individual CIBIL score might not matter too much, in order to get your loan approved faster and hassle-free, having a strong credit history shows positive signs to the lender.

  6. 4) Choose the right loan • With so many different types of loan options out there, it is imperative to choose the loan option that suits your needs and your requirements. • It is not wise to go for a big sum loan if you aren’t capable of paying the monthly interest payments. There are a few criterions to keep in mind before choosing the right loan for you. • You also need to have a good enough reason for borrowing the loan. Lenders are most likely going to ask you what the loan is for?

  7. 5) Approach Independent Lenders • High end banks do not typically offer the best interest rates or a competitive business loan. • Apart from the rates, they do not specially cater to the needs of SME markets. With the efficiency of NBFC’s and FinTech seeping into the market, it is advisable to approach independent lenders.

  8. Thank You

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