bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 5  >> 

Opportunity for SME Business Loan





Are you looking for a business loan for SMEs?
Do you want to know how to apply for a business loan?
If yes, then you are in the right place. In this article, you will come to know about opportunities for SME business loan.

Initially, let us understand about business loans. A business loan can be defined as the loan or fund provided to the enterprises or organisations by different finance companies in order to fulfill all the requirements of the business operations. Such funds help enterprises to achieve their objectives and goals. For example, expanding the business by setting up new branches and investing in the existing business to gain more profit.

Now, letâs talk about the SME loans. The SME loans are specially designed loans for Small and Medium-sized Enterprises. According to the European Union, the SMEs are defined as the small independent companies which have around 500 employees.

The small companies and enterprises are expanding their business, increasing their productivity, updating technology and also improving marketing campaigns along with hiring new personnel, day-by-day. Hence, proper funding is required at each step and in order to stay ahead of other competitors. The loan helps organisations to achieve the following:
â¢Establishing new branches of the company
â¢Renovating the existing infrastructure of the organisation
â¢Buying new equipment and machines for business operations
â¢Restoring the inventory items
â¢Improving and energizing the marketing of the products
â¢Enhancing the security measures of the organisation in order to prevent risks
or threats or vulnerabilities.

Nowadays, there are a lot of finance companies available which can help you by providing the sufficient fund. You can also take help of the financial advisor before choosing the best among all the available options. Such personnel can aware you of the benefits and drawbacks of all the options available. The range of loan offered to the SMEs depends upon the turnover of the company. It starts from Rs. 5 lakh and can go up to Rs. 1 crore, and even higher.

Now, let us understand the process of applying for an SME loan. The process of applying for an SME loan is very simple and easy. While applying for a loan, the SMEs are required to submit the following documents:
â¢The SMEs are required to submit the GST returns for the last one year.
â¢The SMEs are required to submit the ITR and other financial documents for the
last two years.
â¢The SMEs are required to submit the KYC documents for the business and the
business owner.
â¢The SMEs are required to submit the bank statements for the last six months.
â¢The SMEs are required to submit the loans or overdraft sanction letters if
any.

After applying for an SME loan, the chances for approval depend upon several factors. These factors facilitate the loan approval. Some of the important factors are as follows:
â¢The enterprise must be functional or operation from last 3 years.
â¢The annual turnover of the enterprise must be more than Rs. 1 crore.
â¢The total CIBIL score of the enterprise must be more than 650.
â¢The information provided by the enterprise at the time of application must be updated and accurate.


About Author Vaibhav Mishra :

Vaibhav Mishra##lt
gt##Co-Founder, CEO & COO##lt
gt####lt
gt##Vaibhav is Co-founder of MudraCircle who brings in 18 years of strong mix of passion and deep knowledge of the knowledge of the SME Lending, Retail Branch Banking, Wealth management and##lt
gt##Insurance space


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/494162


Article Added on Saturday, May 18, 2019
LD
Other Articles by Vaibhav Mishra

Online Application for Business Loan at MudraCircle
One of the most basic requirements of any business is money because it helps in the financial management of the organisation and meeting all the requirements of the business. Business loans are the most common and popular method of arranging capital for your organisation. You are required to choose the best source of finance among all the financial companies. MudraCircle is one of the most comprehensive loaning collection marketplaces in India. It is located in Gundecha Enclave, Khairani Rd,...

Collateral Free Business Loan
Do you want to learn about a collateral free business loan? Are you looking for such loans? If yes, then you are in the right place. In this article, we will brief you about the collateral free business loans. Read on to know more. Initially, you need to understand what does the term collateral means. In terms of banking, collateral refers to an asset or resource against which you can borrow some loan, capital or money. In case, if you do not repay the borrowed amount to the lender, the...

Publishers / Webmasters
Article ID: 494162
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


162 Users Online!!
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Bulk Email Solutions India Provided By AwareIndia







Company IDS