What Are the Advantages of Availing Business Loans

Are you into a business or planning a start-up? If the answer is yes, consider taking a loan from a reputed NBFC like Ziploan, if you need money for your business growth or new business. 

There are many categories under which you can avail affordable business loans. Moreover, Government is also encouraging MSMEs by launching various schemes. The schemes are many, and you have options that can support you to ease your terms of return. 

MSME loans (micro, small, and medium enterprises) can be availed based on your project. The classification includes  

  • Micro - where investment is not more than one crore 

  • Small – where investment is not more than ten crores, and 

  • Medium – where investment is not more than 50 crore 

The benefits of MSME loans are: 

  • Collateral free 

  • Subsidy on Patent Registration 

  • Overdraft Interest Rate Exemption 

  • Industrial Promotion Subsidy Eligibility 

  • Protection against Payments (Delayed Payments) 

  • Fewer Electricity Bills 

  • ISO Certification Charges Reimbursement 

Since MSME is a government-run scheme, one can get all applicable benefits involved. This will help you concentrate more on business than that of tension of loan installments. With online process availability now, it has become more straightforward and hassle-free to apply for a loan. This is an advantage in the current scenario of a pandemic.  

MUDRA (Micro Units Development and Refinance Agency) is another scheme that allows you to apply for a business loan. MUDRA loan comes under Pradhan Mantri MUDRA Yojana (PMMY), where loans up to 10 lakh are provided to non-corporate, non-farm small/micro-enterprises. Such loans' sanctioning authority lies with Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs.  

The seeker can approach the institutions mentioned above or apply online through the website www.udyamimitra.in. Like in MSME, MUDRA has three categories: Shishu, Kishore, and Tarun, and lends the loan accordingly. MUDRA loan scheme underlines government vision 'to provide integrated financial support with an excellent benchmark to the bottom of the social pyramid and help them become 'atmanirbhar.' 

MUDRA scheme is hailed as the prime scheme of MSME and has the following advantages –  

  • Women borrowers can get better benefits due to lower interest rates. 

  • There is no need for collateral for this loan, so there is no risk of losing personal or business property. 

  • This loan is most beneficial to those entrepreneurs who want to set a micro-enterprise. 

  • You can meet the working capitals for your company. 

  • In the event of default, the government assumes responsibility for paying the loan. 

  • Funding from this loan can be capitalized to grow, fund, and expand your company. 

  • The repayment term can be extended or shortened. 

  • The scheme is available for small businesses in both urban and rural areas. 

  • Access to MUDRA debit cards is also available by choice. 

Other loan lenders like financial services affiliated with the RBI also provide many beneficial schemes for those who want to do a small start-up. Advantages availing business loan from Ziploan, e.g., are as below –  

  • The loans are collateral-free. 

  • Availability of Flexi-loan. 

  • A loan of up to Rs 7.5 lacs can be availed. 

  • Prepayment facility 

  • Online business loan 

Unsecured business loan opportunities, too, provide some solid benefits via loan. If one chooses to take a loan under such a category, Rs 7.5 lacs amount can be approved. If you are eligible for their criteria, you can get the following advantages on possessing the loan –  

  • Quick disbursal 

  • Unsecured business loan 

  • Minimal documentation 

  • Competitive interest rates 

  • No prepayment charges 

  • Flexible tenures. 


How to get an unsecured business loan? 

To avoid collateral, one has to put his case strongly with sufficient information on how his business can repay the loan amount promisingly. 

Can one get a business loan with no money? 

Yes, one can avail of it but with solid proof of the capability of repayment and fulfilling the documental requirement. 

What is a good cibil score to avail a business loan? 

A score of 750 is considered good to avail of a business loan. If your score is close to 900, your chances of getting a business loan increases.