
Tax Benefit
Upto Rs. 46800
Tax Benefit
Upto Rs. 46800
Tax Benefit
Upto Rs. 46800
Start-ups and businesses can take out loans for a variety of reasons. There is always a need for financing, either for upgrading equipment, onboarding new employees, or increasing the size of the office. When evaluating a company, several factors are taken into consideration, including its creditworthiness, its history, any collateral that it may be able to provide, and its present financial status.
Upto Rs. 46800
Upto Rs. 46800
Upto Rs. 46800
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Finances are a major factor in the start-up of any business. It is rare for small business owners to invest their funds into their enterprises. They require working capital to keep their business activities running smoothly and increase profits. In order to do that, they rely most of the time on traditional banks or finance companies to obtain capital.
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Start-ups and businesses can take out loans for a variety of reasons. There is always a need for financing, either for upgrading equipment, onboarding new employees, or increasing the size of the office. When evaluating a company, several factors are taken into consideration, including its creditworthiness, its history, any collateral that it may be able to provide, and its present financial status.
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In the following section, we will discuss the definition of a business loan, various types of Business Loans offered by Bajaj Finserv, the eligibility requirements, rates of interest, documentation requirements and so on.
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A business loan can be defined as a financial arrangement made between lenders and businesses. The financier provides capital for the venture, and the business returns it after a pre-determined period and at a predetermined rate of interest.
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A business owner seeking capital should know the difference between guaranteed financing and funding without collateral. The reason is that your decision will determine the type of interest rate, repayment conditions, and whether or not your lender has the right to seize your property.
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To cater to the special requirements of entrepreneurs in India, Bajaj Finserv offers a variety of small business loans. These include:
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Besides the information presented above, Bajaj Finserv business loans can be further differentiated into two groups: secured and unsecured. You can choose between both options depending on your business needs.
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Secured Business Loan– The term secured loan refers to financial support backed by collateral. The purpose is to encourage the borrower to repay the loan on time. Both salaried and self-employed individuals may apply for the secured business loans offered by Bajaj Finserv. Affordable funding can be easily obtained for your business with easy eligibility criteria and minimum requirements for documentation.
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Unsecured Business Loan– Unsecured loans operate solely on the borrower’s ability to repay and are not protected by collateral. A wide range of features is also available in the Bajaj Finserv Unsecured Business Loan to meet the needs of SMEs. In addition to advancing operations, modernizing machinery, and boosting working capital, these funds may be used for any unforeseen expenses.
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Both of these loans have slightly different eligibility requirements and interest rates, as explained in the following article. We will start by looking at secured loans.
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The highlights:
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Eligibility:
The following are the eligibility criteria for a Secured Business Loan:
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National– Indian national
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CIBIL score– 720 or higher
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Work Status- self-employed or salaried.
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Required property ownership: Must be a homeowner or business owner within the vicinity of Bajaj Finserv locations.
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Business vintage – Minimum 3 years
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Age limit:
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Secured business loans require the following documents:
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Fees and Interest rates:
Fee categories | Rates applicable |
Rate of interest | 13% to 16% per year |
Processing Fee | A maximum of 2% plus taxes on the loan |
Statement charges Statement of account/repayment schedule/foreclosure letter/certificate of no liens/interest paperwork/any other paperwork | There is no fee as long as you download it through the easily available customer portal. Can acquire a physical copy from any of the branches at a minimal charge of Rs 50/- per document inclusive of all taxes. |
Penal interest | You may be subject to a penalty interest rate of up to 2% per month if you are not able to pay your loan on time, in addition to any taxes due. |
Charges for document processing | There is a processing fee of Rs. 2360/- inclusive of all taxes. |
Stamp duty | State-specific |
Prepayment charges | 2% plus taxes (after more than 1 month from the date of loan disbursal) |
Foreclosure charges | 4 % of the total outstanding loan amount |
MOF (legal and technical charge) | Rs. 6000/- |
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The highlights:
Reduced EMIs- The Flexi facility allows you to pay 45% lower EMIs for the initial portion of the tenor.
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Loan amount– Fulfil your wide range of financial needs effortlessly with high loan approval rates. As much as Rs 45 Lacs can be loaned.
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A long repayment period – With a tenor of up to 7 years, you can repay your loan with affordable EMIs.
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Exclusive Pre-approved loan offers – Apply for pre-approved loans in a few clicks by submitting your basic information online.
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Zero collateral – Take out high-value business loans without pledging any assets or securing any collateral.
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Eligibility:
The following are the eligibility criteria for an unsecured Business Loan:
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Nationality– Indian
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CIBIL rating– 685 and above
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Status of employment: self-employed
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Business vintage – Three years minimum
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Age limit- 24 to 70 years (At the time of maturity, the participant should be 70 years old.
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Secured business loans require the following documents:
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Fees and Interest rates:
Fee categories | Rates applicable |
Rate of Interest | 17% per annum onwards |
Fees associated with processing | A maximum of 2% of the loan amount plus taxes. |
Charges associated with bounces | Up to Rs. 3000 including taxes |
Penal interest | will be 2 % per month in case of any delay in monthly EMIs. |
Document Processing charges | Rs. 2000/- plus tax. |
Document/ statement charges | There is no fee as long as you download it through the easily available customer portal. Can acquire a physical copy from any of the branches at a minimal charge of Rs 50/- per document inclusive of all taxes. |
Maintenance charges | 0.25% to 1% in addition to taxes on the total loan amount |
Foreclosure charges | 4% of the loan amount payable upon prepayment, plus applicable taxes |
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The most important part of starting a business is finding funding. In the absence of proper financing, a business seeks funding from a person or a financial institution. You can obtain loans from several different sources in the market. A borrower must provide the lender with the necessary documentation and collateral in order for them to evaluate creditworthiness and repayment capacity.
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Securing a business loan from Bajaj Finserv is the most suitable option when seeking funding. This company offers a wide spectrum of business loans that are of high value and can be obtained easily with flexible repayment terms.
Partnership firms, Self-employed individuals, Proprietors, Private Ltd. Co. Self-employed non-professionals, and Partnership firms may apply for a Bajaj Finserv Loan. For consideration, applicants must satisfy the loan requirements and submit their relevant documents.
A business’s loan repayments can vary from 6 to 84 months.
A CIBIL score of 685 and higher is perceived to be a good credit score by Bajaj Finserv. It also reflects well on your profile to have a good turnover for your business and to ensure that all your documents are in order.
Among the major factors determining a loan, eligibility is:
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Some banks have lock-in periods between 6 months and a year. You must pay 4% pls taxes on your outstanding principal amount if you are foreclosing your term business loan with Bajaj Finserv. 4% plus taxes on the outstanding loan principal will be due if you have chosen the Flexi option for your loan.
The business you own should be at least three years old. Additionally, you must have filed your income taxes for at least one year.
We’ll tell you why this Business Loan is right for you:
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The part payment amount is subject to a nominal charge of 2% plus taxes. Individual borrowers can opt-out of these charges if they choose the Flexi option for their loan.
The answer is yes. You are more likely to obtain a term loan if you present your income tax return papers.
The following are the steps involved in applying for a term loan from Bajaj Finserv:
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