Monetary funds are among the most basic requirements with labour and technology to successfully run a business. A financially strong person or organization can utilize the resources to their maximum capabilities. It also helps you expand your business, increase capital, and avail optimum profits.
Small business owners do not need to use up all their savings to establish their business. They can opt to take a business loan. It is an easy and quick way to acquire funds that help grow and benefit your business.
Benefits of a business loan
Unlike investors, lenders do not hold you answerable for the funds consumed and profits availed from them. If your business matches the criteria for acquiring the loan, it is usually a hassle-free and reliable process. Following are some of the primary benefits of obtaining loans for your business.
- Increase your capital
With the help of the provided financial aid, you can invest in raw materials, machinery, workers, etc., to expand your business. Increased working capital may help speed up the production and distribution sectors and maintain the flow of your business.
Loans provide support to the short-term expenses of your business which enhances its stability for long-term progress.
- Access to MSME loans
The MSME loan providers include private and public banks, small-scale industries, MUDRA, SIDBI, and NBFCs like ZipLoan.
ZipLoan provides easy loans, ranging from Rs. 1 lakh to Rs. 7.5 lakh with flexible repayments. Our easy-to-meet conditions and minimal document verification through an online process ensure quick access to the funds and maximum business benefits.
- Control over your funds
The only concern of the banks or the non-banking financial companies (NBFCs) is that you repay the loans taken on time. You are solely responsible for using the loan as per the requirements of your business.
It gives you absolute control and freedom to spend your money and run your business with maximum efficiency.
- Quick and easy
It takes a lot of time to convince the investors to provide funds for your business. Acquiring a loan is a comparatively convenient and fast-paced process that starts functioning within 24 hours of application. ZipLoan is an RBI registered NBFC that offers various business loan in just three days that help maintain your expenses and build a secure infrastructure.
- Own your profits
Unlike investing companies or organizations, lending institutions do not interfere with your profits or demand a share in them. Ensuring only timely payments, Bank and NBFC policies do not get affected by the outcome of their offered funds. During the tenure period, you become the sole owner of your profits.
- Flexible terms and low-interest rate
It becomes easier for small-scale business owners to procure a loan and repay it on time due to the low interest rate. You can also set the period of loan repayment suitable to meet your business expenses. You may opt for shorter terms for capital expenses and long periods for a planned expansion of business.
What does Udyog Aadhaar have to do with business loans?
Udyog Aadhaar is a unique identification number for small and medium enterprises to register them as Micro, Small, and Medium Enterprises (MSME). Also known as ‘Aadhaar for Business’, it is a 12-digit number provided by the Ministry of MSME, Government of India.
The registration helps to make your enterprise recognized and valid to avail of the numerous benefits offered by the government.
Use of Udyog Aadhaar in obtaining MSME loans
The government has established a vast network of institutions across the country from where businesses can avail themselves of their Udyog Aadhaar number.
- The government aims to encourage the growing MSME businesses through this scheme and provides subsidies over interest rates that are lower than the regular ones. MSMEs can obtain loans with up to 1.5% lower interest rates.
- The ‘Aadhaar for Business’ consists of your details such as educational qualifications, bank details, and type of business which helps check your eligibility to provide you with a collateral-free loan.
Business loans have all the benefits mentioned above. Loans for micro, small and medium enterprises offer instant loans online. Getting a business loan can ensure an increase in capital or recovery from losses.
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