Easy and Quick Business Loan For Traders – Apply Now

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Trading is an essential component for a country’s economy. In India, the trade to GDP ratio in 2022 was 49.37%. To maintain and run a trading business, you might need regular cash flow to fund the daily needs of your business.

To help fund the financial needs of your business, you can resort to a business loan for traders. To know the application process for a business loan, eligibility and documents, read on.

Eligibility Criteria for Business Loans for Traders

The eligibility parameters for obtaining a business loan for traders are simple and convenient to meet. They are:

  • You need to be aged between 24 and 70 years
  • You need to be an Indian citizen residing in India
  • Your CIBIL score should ideally be higher than 600
  • A minimum business vintage of 3 years is required

Upon meeting all these eligibility parameters, you might be able to receive a business loan quickly from a lender of your choice at lower interest rate and better terms.

Documents Required for Business Loans for Traders

After meeting the eligibility criteria, the lender will ask you to submit a few essential documents, such as:

  • KYC documents, such as Aadhaar card, PAN card, or ration card
  • Financial documents relating to your business
  • Certificate of business existence

How to Apply for a Business Loan for Traders

You can easily apply for a business loan for traders by following these steps:

Step 1: Visit the website of your preferred lender and navigate to the business loan section

Step 2: Choose the type of loan you wish to obtain and, click on apply now

Step 3: Fill in the application form with all necessary documents

Step 4: Upload bank statement for the previous months and other documents

Step 5: Submit your application

After following these steps, the lender will verify your details and approve your application accordingly. Note that loan disbursal may take a few more days.

Benefits of Obtaining a Business Loan for Traders

A business loan also brings forth various benefits for traders. Find a few below:

  • Tax benefits

It is often possible to deduct interest paid on business loans from taxes. Make sure you are eligible for a business loan and know the maximum interest rate before applying for one.

  • Working capital funding

If you have a liquidity problem, using the money from the company loan to improve your working capital might be quite beneficial. Without using money from the emergency reserve, you can maintain everyday operations and pay short-term expenses with Working Capital Loan.

  • Fast disbursal

Business loans are usually granted quickly and with minimal documentation requirements, enabling a company to carry on with its operations and achieve its growth goals uninterrupted.

  • Zero collateral

Sometimes business loans are given out with no security required, provided you meet the eligibility requirements. Because they are unsecured, business loans are an especially alluring option for small businesses that might not have many assets.

  • No loss of equity

An investor you bring on board will want a share of the profits your business makes. That’s not the case with a business loan. Because you are obligated to repay the lender a specific amount in this case, the principal and interest amounts are fixed, independent of how well your business does as a result of the financial support.

  • Increased creditworthiness

Obtaining a business loan can also help the company’s creditworthiness. You will need to make timely bill payments and loan repayments before the prearranged deadline in order to improve your credit score. This will allow you to get more money down the road at lower annual percentage rates for business loans.

  • Flexible repayment tenure

You have a choice as to how long the loan will last. If you require a short-term business loan to cover working capital expenses, you can apply for a one-year loan. If you want to use the loan to grow your business, you can get one with a longer term, like four years.

Summing Up

Now that you are aware of how a business loan for traders works, you can easily apply for one. However, before proceeding, consider keeping all necessary documents handy and meeting the eligibility requirements, especially the CIBIL score.

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