Executive | Posted on |
Latest Interest Rates Of Short Term Business Loans In Delhi NCR
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Business needs funds to meet its regular expenses and for planning its expansion. Small business owners need both long-term as well as short-term business loans for satisfying their business capital requirement. Traditional banks might not be their lender of choice most of the times as it always follows stringent and lengthy business loan approval and documentation process. For securing a fast small business loan in Delhi NCR and in other areas, people resort to NBFCs most of the time these days.
Let’s get familiar with what NBFCs are, how can they help in availing easy business loans, and how competitive actually the NBFC business loans are.
Understanding the NBFCs Concept
NBFC stands for Non-Banking Financial Company and it is a company registered under the Companies Act, 1956. Unlike banks, these are not regulated by the RBI but by the Companies Act, 1956 only. They are involved in giving loans, making investments, offering various credit facilities, and conduct trading in the money market.
A layman might do the mistake of confusing a bank with an NBFC but there are key differences between them. Unlike banks, it is not necessary for an NBFC to maintain any reserve ratio. NBFCs cannot issue Demand Drafts, cannot take demand deposits, and also can never issue cheques drawn on itself.
Why opt for NBFCs if there are Banks?
NBFCs are gaining wider acceptance as one of the most preferred business loan destinations for the small business community. There are multiple reasons that have attracted the attention of loan-seeking business owners to unsecured loans offering from Non-Banking Financial companies.
Unsecured Because it takes no Collateral: It becomes a matter of tension to a small business owner (perhaps all) if the individual needs to use his asset as collateral for taking a business loan from a bank. NBFCs do not make it necessary for people to mortgage their asset as security or collateral for the business loan purpose. Non-collateral business loan eases the tension of losing one’s asset (house, car, or shop) under any situation. This is a big relief.
Credit Rating is Nothing to fear of: Unlike traditional financial institutes, NBFCs do not fuss about good credit score. Even if a businessman cannot show a good credit score or rating, there is no threat of getting turned down by NBFCs. They will approve and sanction the busines loan but with a slightly increased rate of interest. This is never an issue with the business owners having a low credit score.
Higher or Reasonable Latest Rate of Interest? A hassle-free short-term business loan can be availed approximately at an business loan interest rate reading around 1.5% flat onwards every month in Delhi NCR from September 2018. Short term business loan rates are quite competitive compared to banks and other financial institutes. There is also the scope of enjoying personalized interest rate on short-term business loans in the Delhi-NCR region.
It is said that the business loan interest rates charged for NBFCs are a bit higher but this is not true. They are the best in market which is why maximum people from the business community are considering taking NBFC business loans.
Relaxed documentation process: A business person cannot waste his valuable time doing paperwork and collecting piles of documents for availing a business loan. The person needs to focus on more important business matters. Here, NBFCs again win as their documentation and loan processing policies are very relaxed and faster.
The documents necessary for securing the short-term business loan will be
● ID proof like Aadhar card, driver’s license, etc.
● Residence proof like a postpaid mobile bill or landline bill etc.
● PAN card
● 12 months bank statement
● Income tax return of the past 2-3 years
These are the documents that one needs to produce and submit (PDFs) for satisfying the short term business loan documentation requirement.
You just submit the business loan documents online or offline and within the shortest possible time period, the business loan gets processed and sanctioned and transferred to your verified bank account. Business owners cannot keep waiting for months for getting the business loan amount that usually happens if the door of banks are knocked for the purpose.
Thus, one can see how relaxed the policies of NBFCs are and how easy it is to get business loans at highly competitive interest rates. These are the reasons that are pulling the business crowd seeking short-term business loans for kick-starting their business operations or expanding it further.