Business loans are the loans offered by different financial institutions and banks to business owners be they small, middle, or big business owners who have an active company and need external funds to run their business. These loans will help them to cover different expenses like employee salaries, rent, equipment experiments, endorsement, and marketing.
Through this article, the readers and the viewers will learn about the different types of business loans and documents needed while you are applying for a business loan in two cities Jaipur and Jodhpur of the state of Rajasthan here in India.
Jaipur is the capital city of the state of Rajasthan whereas Jodhpur is the western city located in the state of Rajasthan, India. Jaipur is often referred to as the pink city because all the buildings in this city are pink in color. Settlement in Jodhpur started in 1459 and was established by Rao Jodha of Mandore and is best known for its handicrafts. In this article, you will understand about business loan provider in Jaipur.
The different types of loans provided by the Indian Banks and other financial institutions-
- Term business loans- these are short-term business loans that last for 1 year to 5 years. Under these loan conditions, the borrower needs to explain the reason for borrowing the money the bank or the financial institution will sanction it only if the company’s credit score meets the criteria of the financial institution.
- Working capital loans- they are short-term loans that last from 1 year to 5 years. They are availed by the business owners to fulfill urgent situations or expenses or pay off their employees.
- Commercial business loans- these loans are availed by those businesses which have large amounts of annual revenue or capital turnover that is a huge amount of company profit and are active for more than a year. This loan is given for a term of 3 years to 5 years.
- Start-up loans- due to the increase in demand for technology, the latest and upgraded software, and apps start-up companies have evolved mainly by the IIT graduates or dropouts who are filled with imagination for food business, stock business, app-making companies, etc require a certain amount of money to establish their company for community welfare. Banks or financial institutions first check the purpose and credit score of the company then they sanction their business.
Documents required while applying for a business loan here in Rajasthan-
- Identity proof- different business loan Jodhpur Rajasthan ask for documents of the company registration certificate, PAN Card, and Adhaar card of the owner of the company.
- Address proof of the owner- this includes Voter ID Card, Ration Card, Passport if any, and Driving License.
- Income documents- applicable for those companies which are running for more than two years. Sometimes this applies to individuals who are seeking start-up loans to ensure that if they fail in their business will they be able to pay for it. Must include a balance sheet, profit and loss margin, etc.
To conclude, the article explains the types of loans given in Rajasthan.