Below listed requirements can be met by applying Business Loan:-
- Starting up a new business venture
- Expanding the existing business venture
- Working Capital Requirement
The processing fee is 2 - 3 % of the loan amount plus applicable taxes
EMI is referred to â€œEquated Monthly Instalmentâ€� which is the amount to be paid monthly on specific date until the loan is fully paid. The two major components of EMI are the principal and interest which is designed in a way that during the initial years the interest component is higher than the principal component but down the line in later years the principal component becomes higher than the interest component
The entire Interest Paid Component can be claimed as Business Expense to avail Tax Benefit.
Various banks offer numerous modes of repayment of loans you can opt from. You can ask for ECS (Electronic Clearing System) or opt for direct deduction of monthly instalment from your salary account as per your convenience. However, it must be noted that the delayed payments would lead to penalty and also you may be subject to paying cheque bounce charges.
After the verification of the documents you can submit the request for the disbursement of the BUSINESS LOAN through Loan street / Bank Representatives.
Yes, the loan can be paid ahead of the schedule by making lump sum payment. However it will be subject to the prepayment charges that vary from bank to bank. Generally, they vary from 2-4 % of the Loan Outstanding at the time of Closure or Payment in Full.