The Government of India has, with utmost concern, initiated to create a financial environment that promotes and supports the growth of small and medium-sized businesses. It has also introduced several schemes with the aim to ease financing for businesses, which have been a huge success. Naturally, New Delhi is the centre of such financing as the capital city of India. The availability of business loans in Delhi is thus aplenty, with several types of financing options for entrepreneurs to choose from.
The presence of top lending institutions in the Indian financial market here only makes funding easier for ventures attempting to outgrow their current sizes with support from external financing. Businesses, especially those operating in the SME and MSME categories can also look forward to several subsidy schemes that should help them secure funds affordably while allowing them to meet their capital expenditures with ease.
Types of Business Loans in New Delhi
When seeking financing to fund your business growth and expansion, or even everyday funding needs, business loans in Delhi come off as suitable funding options for many purposes. For one, the funding is sufficient to meet both short and long-term financing needs with ease. The loans are also available with flexible tenures to ease the varying repayment affordability of different lenders.
Other attractive features of these loans such as collateral-free financing and low rates of interest only make it impossible not to go for the loan option to fund your business’s monetary needs. But most of all, the freedom to choose the required loan type customized for specific purposes pulls most businesses towards these loan options. Let’s check out some of the best business loan types available in New Delhi.
1. Term loan
These are generic loan types that come with a definite repayment tenure, and thus the name ‘term loan’. You can avail of a typical term loan for a tenure of up to 5 years, whereby the repayment would need to be made in up to 60 EMIs.
An extended duration as such brings down the EMIs payable, thus enabling businesses to borrow as per their funding needs. With the best financial institutions in Delhi, you can also secure one of the lowest business loan interest rates on these advances. One of the best advantages of availing of these business loans is that they are collateral-free advances and require you to meet only a handful of eligibility requirements to access funding. Further, the financing so availed is open to utilisation for all business spending needs without any restrictions.
2. Business loan for SMEs
Businesses that qualify under the Small and Medium-Sized Enterprises category can avail of these loans based on their eligibility fulfillment. A qualifying business can typically avail of these loans amounting up to Rs.25 Lakh as collateral-free financing with ease.
When requiring an amount beyond this threshold, you would need to mortgage a business or personal asset to raise funding as a business loan in Delhi. These loans are also free of any restriction to end-use and can be utilised by SMEs for any or all purposes they seem fit.
3. Working capital loan
Businesses especially in their stages of growth and expansion often stumble upon fund shortage for meeting their day-to-day spending needs, better known as working capital. As a shortage of necessary working capital can hinder the overall operations of the firm, financial institutions ensure easy availability of dedicated financing options like working capital loans to meet such a gap, also available for businesses located in New Delhi.
These loans have shorter processing times and fast approvals following amount disbursal shortly, which make them easily and quickly accessible to businesses for their immediate funding needs. Financing availed well in time for meeting a business’s working capital gap can help with picking up on new market opportunities in the market.
4. Business loans for women
Although all other types of business loans in Delhi are available for women, the ones that are dedicatedly provided come with customised features. Depending on the types of business a female entrepreneur is running, necessary financing availability can mean well-timing of the business prospects for growth and expansion in the long run. At the cost of sounding biased, one can always say that the applicants for these loans are less as compared to other loan options, which makes them easily available with fast processing and approval.
5. Plant and machinery loan
A business in need of capital funding can look out for financing options like plant and machinery loans. These advances are available as both secured and unsecured loans a business can choose from depending on its need for the financing quantum. The repayment tenures are usually long, which makes bearing the loan liability simpler.
Other common business loans in Delhi to look forward to including start-up business loans, line of credit, and bill discounting. Choose a loan option that best suits your business financing needs without overburdening the debts. Check your loan amount and tenure affordability with the help of an EMI calculator before applying for the advance.
