Getting a Business Loan in Ahmedabad, Gujarat

  • | Tuesday | 26th November, 2019

Gujarat is the western most state in India and has always been known for its business enterprise. The state has progressed and is looked upon as an economic success story based on its favorable trade policies, and efficient management of resources.

The co-operative movement in Gujarat has rewritten business model in the country. The all-pervading spirit of entrepreneurship in Gujarat makes it a vibrant business hub with ample scope of startup and finance options through a business loan in Gujarat.

Business Centers in Gujarat:

For long, Gujarat is famed for its enterprise in small scale business. Of late, it has emerged as the Petrochemical Hub of the country. No wonder Gujarat accounts for more than 60% of petrochemical production in India. The best part is the business hubs are spread all over the state, but major concentrations are in:

  • Surat: It is the Diamond Hub of India, well connected to diamond centers across the globe. Surat is also the largest producer of manmade fiber in the country.
  • Vadodara: Erstwhile Baroda is not only a tourist destination in Gujarat but is also home to many Pharmaceutical Companies other than the host of industrial units in chemicals, cotton textile, and machine tools. Baroda boasts of a large talent pool and is considered the repository of skilled labor in the state.
  • Ahmedabad: It is the largest city in Gujarat and popularly known as the Manchester of India. It has presently transformed into a commercial hub with emphasis on IT, Food Processing, Textiles and Service Sector Industries. The city riding on infrastructural development has emerged as a center for business opportunities.

Business Loan in Ahmedabad:

The famed enterprise of Gujarat is most visible in Ahmedabad. The urban milieu and the favorable eco-system with liberal policies make Ahmedabad an attractive destination for entrepreneurs. The success of enterprises in the city gives lenders ample scope to cater to interested borrowers.

Like everywhere else in the country, Banks, NBFC, and Fintech companies cater to the credit needs to entrepreneurs in Ahmedabad. The decision for choosing a suitable lender squarely rests with the business owner, when he evaluates the pros and cons.

Fintech companies have emerged as the best bet for new enterprises not only for the ease of application, but also for its quick approval with tailored products to suit all types of business necessities.

Features and benefits of Business Loan in Ahmedabad:

The biggest advantage with Fintech is that you can get a business loan that suits your needs. This is possible because the loan products are innovative and aligned to emerging trends in a digital world. Let us check them out:

  • The EMI calculator online tool is a part of the digital platform. You can structure your loan proposal and match it with your requirements and status.
  • Processing is fast and transparent completing the entire cycle within three days.
  • The tenure and the repayment mode are flexible offering you more than one option.
  • The quantum of loan is generously granted from Rs.50K to as much as Rs.1C.
  • All transactions are transparent and there are no hidden charges.
  • Loans are generally collateral free, but should you provide one and your credit score is good; you are entitled to lower rate of interest.
  • Loans are granted for a wide range of purposes and the documentation is minimal.

Eligibility for a business loan in Ahmedabad:

Every lender has its own set of norms for accepting loan proposal for evaluation. The key factors considered for eligibility are:

  • Ownership of the Business.
  • Type of Business activity.
  • Pattern of cash flow.
  • Generation of profit.

For all the stated factors, the lenders define their eligibility principles. The specifics are defined which need to be complied during the process of online application in the case of Fintech.

Documents required for business loan in Ahmedabad:

That brings us to the crucial point of documentation. In the case of banks, you can face stringent stipulations in the process of documentation, which in a Fintech is in harmony with the type of loan. Let us check out the different documents sought by them.

Types of Business loans in Ahmedabad:

A business enterprise requires different form of funds to cater to the needs. It can range from purchase of inventory, streamlining cash flow, upgrade or replacement of equipment, hiring of skilled staff, marketing and publicity, purchase of new technology tools and software, and expansion or diversification. Thus, there are loans tailored to meet the specific needs.

Term Loan: It is one of the common types of business loan. As the name suggests it is for a specific term, which is up to 36 months. Loans of such types are repaid by EMI.

Line of Credit: The other name of this credit is Overdraft where a limit is set in your business current account. You can draw and deposit funds at will, to the extent of the defined loan limit. Interest is booked on the used fund till it is liquidated by deposit into the account. It is thus beneficial as your interest burden is reduced.

Invoice Discounting: Here the loan is against the outstanding invoices which also constitute receivables. The advance to the extent of 90% of the Invoice value ensures that you are not out of funds till the invoice is retired on receipt of payment.

Merchant Advance: Many businesses have POS terminals to cater to customer preference for digital payments. Obviously, it is also receivable till the transactions are settled. Depending on the value of the POS sales, your lender provides you with cash advance to maintain adequate cash flow.

Bottom Line:

Ahmedabad being the prime city in Gujarat for business opportunities has also the sources for business loans both for existing business as well as startups. Fintechs are gaining ground with customer friendly approach and bouquet of tailored business loan in Gujarat. With proper planning you can get the business loan of your choice to meet the various needs that emerge during the life of a business.

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