How to apply for a business loan in Jaipur

Jaipur as a city has a lot of business opportunities to offer its young entrepreneurs. Moreover, as one of the fastest developing cities, Jaipur is native to many thriving industrial sectors, including handicrafts and apparel. 

Jaipur: Business Opportunity & Landscape

Jaipur is a famous hub for different handicrafts and traditional designer apparel. Also, the city is one of the largest manufacturers of hand-knotted rugs. The city also deals with pottery items, antiques, jewellery, handicrafts, carpets, textiles and metal products. 

With such a varied range of products and business opportunities available in the city, any young entrepreneur should feel noticed. This attracts business minds’ attention to start their venture in Pink city. Hence, the government here also encourages young business minds to start their own business by providing business loans at minimal interest rates. 

Why Do You Need A Business Loan?

When it comes to business, many things need to be considered. Taking a business loan in Jaipur can be done in many ways. You can take loans from banks, private lenders, or crowdfunding platforms. Some of the benefits of business loans are:

Nurture Your Business Idea

Young minds have big ideas! They want to start their own company and make a lot of money. So if you are borrowing for your business, one way to make the best of it is to take an unsecured business loan in Jaipur. 

Influx does everything for you and helps you stay ahead of your competition.

Systematic access to capital through business loans in Jaipur is a blessing in disguise. Moreover, a loan against your POS will give you more resources and allow you to grow without worrying about quicker competition.

Faster Process

Additionally, the procedure involved in the application for the business loan is easy and hassle-free approval within 48 hours.

Reasons you should take Business loan in Jaipur

A business loan is a type of financing that small and medium-sized enterprises often use to fund their day-to-day operations. The advantages of a business loan include:

• Low-interest unsecured loans in Jaipur. 

• You will receive an attractive and competitive interest rate.

• Flexible repayment tenure up to 36 months

• Minimal documentation and quick processing for Business Loans

Which Are The Best Business Loans In Jaipur?

Here are the best business loans you can take in Jaipur

Secured Business Loans: This is the most common type of loan for businesses and is usually given by banks. 

Unsecured Business Loans: These are also known as signature loans, which means that the loan is not backed by collateral or guaranteed by a third party. 

Business Credit Cards: These cards allow small businesses to run transactions without having to pay upfront or wait for a monthly invoice to be paid off before receiving the funds.

Business Lines of Credit: These are also revolving lines of credit that allow a business to borrow money without waiting for a monthly invoice to be paid before receiving the funds.

Top 5 Banks/NBFCs In Jaipur that Offers Business Loans

HDFC Bank

HDFC Bank is an Indian nationalized bank which has its head office in Mumbai. It also has subordinates by the name of HDB Financial Services and HDFC Securities.  The bank’s network distribution was 6,738 branches across 3,203 cities. 

Key highlights:

• You can get a business loan amount of upto 50 lakhs without any minimum specification. 

• The repayment tenure of the loan amount starts from 12 months to 48 months. 

• The bank charges a 2% processing fee on the sanctioned loan amount. 

• The rack rate of interest on the loan amount starts from 10% p.a. to 22.50% p.a.

State Bank of India

SBI is another public sector bank which provides financial services to people. It has its head office in Mumbai. This multinational bank has 22,219 branches and 62,617 ATMs, along with 229 international branches in 31 countries. 

Key highlights:

• You can apply for a business loan from 10 lakhs to 25 lakhs. 

• The bank provides a dropline overdraft facility to loan applicants.

• The interest rate on the loan amount differs depending on the business requirements and is linked with MCLR.

• You need to deposit a minimum of 40% as collateral security against the application and sanctioning of the loan. 

• The repayment tenure lasts upto 60 months only. 

Yes Bank

Yes, the bank is an Indian financial institution established in 2004. It is headquartered in Mumbai, Maharashtra. The bank offers its customers various corporate and retail banking services. It is a public sector bank with a capital ratio of 17.0%. 

Key highlights: 

• The bank offers a business loan of upto 50 lakhs to its customers. 

• The loan interest rate varies per the business requirements and current MCLR. The present MCLR of Yes bank is 8.75 for one year. 

• The repayment period of the loan amount ranges between 1 to 5 years.

• Collateral is not required for taking a loan. 

Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian financial institution which has its head office in Mumbai. It offers banking and other financial services to corporate and retail clients. It was founded in February 2003 with different investment banking divisions.  

Key highlights:

• Loan amount ranges from three lakhs to 75 lakhs.

• The fixed interest rate on the loan amounts ranges between 16% to 19.99% p.a.

• The bank sanctions the loan amount after 72 hours of submitting the documents for verification.

• The repayment tenure of the loan goes up to four years only.

Axis Bank

Axis Bank Limited is one of the most convenient Indian public sector banks for providing business loans at affordable rates. Its head office is in Mumbai. Axis bank provides financial services to mid-size, large companies and retail businesses. 

Key highlights:

• The bank offers a business loan of a minimum of 50,000 upto 50 lakhs to its customers. 

• The interest rate on loans ranges from 14.65% to 18.90%. 

• The repayment period of the loan amount ranges between 1 to 5 years.

• Collateral is not required for sanctioning of loan. 

• The processing charges on the sanctioned loan amount are 2% of the loan amount.

Conditions for loan eligibility

The business acumen of Jaipur entrepreneurs appeals to most money lenders. However, there are specific criteria which determine whether you are eligible for a business loan application or not. These are as follows:

• Owners, self-employed people in a legal partnership and private limited companies. 

• Employees who have been in the same current position in their company for at least three years and have a minimum of five years of business knowledge. 

• Businesses which have an average turnover of at least ten lakhs.

• The businesses must earn at least two lakhs annually. 

• Individuals must be 22 years before the date of application and upto 65 years according to the date of maturity of the loan. 

• Companies must make profits within the past two years of working. 

Documents required for a Business loan

Here are the essential documents you will need when applying for a business loan in Jaipur. 

• Identity proof and PAN card of the firm company or the individual applying for the loan.

• Proof of residence like voter ID, ration card, passport or driving license. 

• Income documents include ITR and bank statements for the last two years. 

• Proof of continuation like sales tax certificate, trade license establishment. 

• A few other documents are copies of the Partnership deed, declaration of Sole Proprietorship firm, and official copies of the Memorandum with Articles of Association and Board Resolution.

This list of documents is not complete. It’s just the standard documents which every financial institution asks for. The rest solely depends on the financial company you select for loan sanctioning. 

Process to apply

Many banks offer business loans in Jaipur and have different requirements. Here is how you can apply for business loans online. 

• Click the Apply Now button through the bank’s website. This will open you to a webpage where you must give all the required information.

• Enter the amount of your loan you require with the duration you would like the loan for.

• You will receive an ID number, and the representative will reach out to you as the first contact.

• The application will undergo several verification steps in which the information provided will be checked against the submitted documents.

• Once approved to receive the loan, the money will be deposited into your account.

Wrapping It Up!

Hence, you can see that applying for a business loan in Jaipur is so easy and hassle-free. Additionally, if you have second thoughts about the loan application, you must check out the advantages of business loans.