Is term loan good?


#1

I am an entrepreneur looking for expansion of business by purchasing new office equipment.
Can i use a term loan to make such a purchase?


#2

Term loans are a popular choice used by a wide range of entrepreneurs to cater their need for money for business expansion. Usually term loans are offered for acquisition of machinery and fixed assets as well as project expansions. So you definitely go ahead and make office equipment purchase with your term loan.


#3

Hi Sourav,

You can consider a business loan. Business loans in India can be availed in the range of Rs.50,000 and up to Rs. 75 lakhs. These loan applications usually get approved fairly quickly and without any hassle during processing. Most banks and financial institutions provide their customers with the promise of secured lending solutions when it comes to business loans. Business loans come with the added benefit of services, such as, SMS, web Chat, phone banking, etc. Some banks even extend exclusive higher loan amounts to their self-employed customer base.

With minimal paperwork and flexible repayment options, more and more business owners are leaning on business loans to fund their business needs.

Unsecured business loans are provided without you having to provide any collateral or asset. They are made strictly on the basis of your credit score and rating and some other methods the financial institution might use to determine your creditworthiness. They by default carry a greater risk to the lender because they are unsecured in nature. Hence they inherently have a higher rate of interest than secured loans and are also more difficult to obtain. Most lenders require an exceptional credit rating, no bad remarks on your credit report, and some even require that you should have been in business for at least 2 years. Therefore, the unsecured business loan works best for established business borrowers with excellent credit history. They are not ideal for start-up funds or if you have a less-than-exceptional credit score.

Looking for a Business Loan? Click here.

Cheers,
BB Expert