Your start-up may be driven by a great business idea and have the required skilled labor and drive to make it big. But its success depends on having ample funds from the right source at the right time. A lack of funds can result in insufficient working capital and outdated technology and machinery, which lead to dissatisfied clients, low standards of operation and supply chain inefficiencies.
While you can find various business loans that are specifically designed for this purpose, you may not be able to afford the high-interest rate. Further, some lenders expect you to have a minimum business vintage of at least 3 years or submit collateral. This is why it’s a worthy idea to apply for a business start up loan. You can secure a high amount at a low rate, without security. Here are 5 reasons why you should make this move to grow your start-up.
Simple Eligibility And Document Requirements
There are various expenses if you are going to start up a business like machinery repairs, software updates, and the likes can show up out of the blue. In such cases, a loan against property is the best funding option as it has simple eligibility criteria that make way for a quick approval. Meeting all or most of these can speed up approval and give your start-up the funds it needs in a jiffy. Further, loan against property documents required is minimal, ensuring that applying is simple and fast too. Always ensure that before applying for the loan keep ready all the necessary documents.
High Sanction To Meet A Range Of Business Needs
A loan against property offers a sanction of up to 75% of the property’s market value. For instance, Bajaj Finserv offers a loan amount of up to Rs.1 crore to salaried, and Rs.3.5 crore to self-employed applicants through its Loan Against Property. With such a hefty sanction you can cover business expenses of any nature, whether you want to upgrade software, procure inventory, lease equipment, pay for advertising or buy a warehouse. You can also do so at the right time to capitalize on growth opportunities.
Affordable Interest Rate And Flexible Tenor
Loan against property interest rates are lower than those of unsecured loans as the former category is backed by collateral. Further, if your property is in good condition, the lender may offer a rate that’s even lower. This, in turn, results in affordable EMIs and credit cost, allowing you to save a significant sum.
Flexible Borrowing For Unpredictable Expenses
As a start-up, you may have to meet various kinds of unpredictable expenses from time to time. To pay them with ease, lenders like Bajaj Finserv offer a Loan Against Property on Flexi Hybrid terms. This lets you withdraw from your sanction as per your needs, so you can get funds when you need them, without having to submit a new loan application each time. Further, you pay interest only on the utilized amount, resulting in significant savings. Also, to manage your cash flow better, you can choose to pay interest-only EMIs for up to 4 years of the tenor and make repayments towards the principal thereafter.
Top-up Loan To Meet Additional Business Expenses
You may consider expanding your business or may require additional funds urgently to increase production capabilities. In such cases, applying for a new loan may seem to be the only feasible option. However, it can be time-consuming and risky, as lenders may not want to approve a loan considering you have already taken one. In such cases, an existing mortgage loan can be quite helpful, as lenders like Bajaj Finserv offer a top-up loan over and above the existing loan against property in India. This allows you to secure additional funds without breaking into a sweat.