Tag Archives: Business Loan

Top 5 Questions of a Business Loan Interview

A business loan is the most popular financing option for entrepreneurs looking to expand their business. However, before pitching a business loan request to the lender, entrepreneurs must prepare themselves thoroughly to boost their loan approval chances. Below, we are going to have a look at some of the most important questions that can be asked by the lender during the business loan interview. If you are an entrepreneur looking to avail a business loan, make sure that you keep yourself well-prepared for the following questions:

  1. What is your business plan?

It is essential that you plan your business strategy well in advance before applying for a business loan. Lenders may ask you your business plan to evaluate your repayment capacity. Therefore, a well-defined business plan can improve the chances of your loan approval. Make sure that your business plan includes important aspects such as, the future goals of your business, profit-generating factors of your business as well as funds required to purchase equipment and inventory, hire new staff, etc. This will reflect your seriousness towards your business, which may eventually boost your loan approval chances.

  1. How much loan amount do you need?

You should have a clear idea about the purpose behind availing the business loan. This will help you estimate the loan amount you would need. The reason of availing the loan could be upgrading infrastructure, promoting products, hiring staff, etc. Make a note of all such business requirements before pitching the loan request to a lender. Lenders will sanction your desired loan amount only if they are convinced the loan amount would be used wisely.

  1. What is your credit score?

Your credit score determines your current financial status. Therefore, lenders will certainly enquire you about your credit score and repayment history before approving your loan application. The higher your credit score, the higher will be your chances of getting the loan sanctioned. Thus, make sure that you work towards improving your personal as well as business credit score before applying for a business loan. A credit score of 750 or above is considered to a good score and lenders will likely approve your loan request, provided you satisfy other eligibility criteria

  1. Does your business have the repayment capacity?

Even after checking your credit score and repayment history, there are chances that the lender may ask this question. In such a scenario, you should elaborate on the future business plans. Also, explain the potential profit-making areas of your business to convince the lender about your repayment capacity.

  1. What collaterals are you providing?

 

  • Business loans are usually secured loans, wherein you have to pledge collateral to avail the loan amount. Collaterals are the security that protects lenders in case the borrower fails to repay the loan. Most lenders may enquire you about the collaterals before approving the loan. Also, the amount that you can borrow may depend upon the value of collaterals.
  • However, with some financial institutions, you can avail a business loan without providing any collateral. For instance, you can get a Bajaj Finserv Business Loan available at Finserv MARKETS at zero collateral. This keeps your valuable assets if you happen to default the loan.

Apart from being collateral-free, Bajaj Business Loans also have attractive interest rates, flexible repayment options, low processing charges and prepayment penalty, etc. Moreover, you can avail the loan amount within 24 hours. Minimal business loan documentation, Instant approval, and quick disbursal are some of the major benefits of Bajaj Finserv Business Loans.

What are The Different Types of Business Loan?

For entrepreneurs looking to avail funds for establishing or expanding their business, a business loan is nothing less than a blessing. With leading lending institutions, you can avail a business loan in a hassle-free manner from the comfort of your home. Online application process, simple eligibility criteria, minimal documentation, instant approval and quick disbursal of the loan amount are the key features of availing a loan from a leading financial institution. However, before availing a business loan, you must have a clear idea regarding the purpose behind availing the loan amount. This will help you avail a business loan that best suits your requirements. There are various types of business loan offered by lenders. Let us have a quick look at the types of business loan:

Professional loans

Professional loans are usually availed by self-employed doctors, lawyers and chartered accountants. The loan amount in case of professional loans may vary from one lender to another. Professional loans are usually long term loans that come with a repayment tenure of 5-7 years.

Working capital loans

Working capital loans are availed by businesses to carry out their daily operations. Working capital loans are unsecured loans that are approved quickly and do not require much documentation. The eligibility criteria is flexible and the application process is simple.

Overdraft

Overdraft loans are of great help when entrepreneurs require urgent money but don’t have sufficient balance in the account. In case of overdraft loans, the interest rate is charged only on the amount that has been withdrawn from the overdraft limit. Various factors such as the credit history, business cash flow, repayment history and your relationship with the lender, play a crucial role in determining your overdraft limit.

Term loan

The loan amount availed through a term loan can be utilized for both personal and business purposes. Term loans are a smart way of quickly increasing capital in order to enhance the supply of the business, or expand the business. One important thing to consider while availing a term loan is whether the interest rate is fixed or floating. With leading financial institutions, you can avail a term loan with flexible repayment options.

Now that you are well aware of the various types of business loans, ensure that you make the right choice while availing a loan for yourself. Before availing a business loan, you must compare various loan offers provided by different lenders. This will help you avail a loan that best suits your needs. You can apply for business loan at Finserv MARKETS in a hassle-free manner. A Bajaj Finserv Business Loan comes at attractive interest rate and with lucrative features such as flexible repayment option, less processing fees, prepayment facility, no hidden charges, quick approval and instant disbursal of the loan amount. You also get the option to customize your business loan according to your requirements. However, before you apply for a Bajaj business loan, make sure that you check your business loan eligibility. This will reduce the rejection chances of your business loan application.