According to a recent statistic, approximately 1.8 billion individuals carried out online shopping in 2018 worldwide. In recent years, online marketing sector has registered growth at an exponential rate because of easy access to the internet, online payment options and convenience of shopping from anywhere and at any time.
Moreover, individuals are also going online to research on brands, products and services, and compare prices before purchasing items.
Hence, businesses must start investing in the online marketing sector and create a digital presence for their brand to stay ahead of the competition.
Moreover, it will enable them to reach out to more clients and thereby expand their operations.
Nevertheless, it should be noted that most small business owners and entrepreneurs often do not have the time and expertise required to invest in digital marketing.
In such cases, they need to hire a professional digital marketing agency, which can be quite expensive.
Consequently, small and medium businesses can opt for business loans from a financial institution to avail the necessary funds to invest in the online marketing sector.
Business loans are unsecured loans, and thus, applicants do not have to mortgage their business assets to avail the same.
An individual can complete the loan application process online and receive the amount within a few days.
Go through the steps listed below to know how to apply for a loan –
- Visit your lending institution’s official web portal.
- Go to the business loan section and access the loan application form.
- Fill up the application form with the correct details.
- Submit the form along with the important documents.
Individuals who can apply for a business loan include –
- Self-employed professionals, such as doctors, company secretaries, architects and the like
- Self-employed non-professional individuals like service providers, manufacturers, traders retailers etc
- Business entities such as partnerships, private limited and closely held limited companies
Business loan eligibility criteria
Before applying for a business loan, candidates should go through the eligibility conditions set by the lending institution. The necessary eligibility requirements that every applicant should meet are as follows –
- Applicants should be 25 – 55 years of age.
- They should maintain a high CIBIL score
- They should have a positive credit profile
- Borrowers need to have a business that is operating for three years or more.
The exact criteria for business loan application approval can differ, based on the lender you pick. Thus, checking the same before applying for such credit is essential.
List of documents
Besides eligibility criteria, applicants also need to furnish the proper documents during the application process to ensure quick approval.
The list of business loan documents includes –
- Proof of Business – Registration documents for a sole proprietorship, partnership agreement, GST tax return, registration certificate under shops and establishment act, certificate of commencement, article and memorandum of association and any other documents as specified by the lending institutions
- Proof of income – This includes bank account statements, profit and loss statement, balance sheet audited by a C.A, income tax returns for the previous year.
- KYC documents – PAN, Aadhar card, voter ID card, passport, driving license, or any other officially valid documents
Some lenders also provide pre-approved offers to applicants that facilitate a hassle-free loan application process while also saving time. These offers can be availed on other unsecured credits like personal loans, credit cards etc.
Individuals can also opt for loans to meet specific business requirements. For instance, if you wish to upgrade and purchase new machinery, you can opt for a machinery loan. Similarly, women entrepreneurs can opt for business loans specifically available for women.
Business loans keep your business financially healthy as it enables entrepreneurs to increase cash flow, hire expert workers stock up on inventory and improve infrastructure. Responsible borrowing can help your venture grow rapidly.