What Are The Benefits of a Business Loan for Residents of Varanasi?
| Wednesday | 11th July, 2018
Business loans provide the perfect solution to financing problems for businesses both big and small. Every business has its ups and downs but to stall a business just because it does not have adequate financing is a misfortune that no entrepreneur would want to go through.
In a city like Varanasi, which houses many small and medium business enterprises, opting for business loans can be the perfect solution for most entrepreneurs because it can help in the establishment as well as expansion of many businesses. Business loans in Varanasi will also provide a number of other benefits to those who opt for it and reduce the financial burden that running a business often results in.
Flexibility: One can choose from various types of loan for business options to fulfill any of their business requirements. There are now many kinds of government schemes in place like CGTMSE that are specifically meant for small and medium business and banks and NBFCs like Bajaj Finserv too have multiple loan options for this purpose. Since these loans do not need any kind of collateral or guarantee, any small business can apply for this loan and get approved.
Easy Repayment: One of the major reasons why many small and medium business men feel hesitant about taking a business loan is that they worry about the repayment and the continuous payment o EMIs month after month. However, there is great flexibility and convenience to be enjoyed as many banks and NBFCs have arrangement for customized repayments, depending on the financial capability of the businessmen. This is because the financial institutions realize that no two businesses are the same and it takes time for SMEs and MSMEs to make profit over time. With convenient EMI payments like Flexi Loans and Interest only Flexi loans from NBFCs like Bajaj Finserv, opting for a loan is no longer a daunting task.
Reduced Interests: Most banks and NBFCs are now bringing down the business loan interest rates on business loans and the SMEs and the MSMEs are to benefit from it the most. Creditors understand that by lowering the interest rates slightly today, they will be helping a business to grow which will reap in better returns in the future and increase the repayment power of the borrower. NBFCs like Bajaj Finserv have interest rates starting from about 18% which is one of the best in the industry today. Of course, a number of other factors like the credit score of the borrower, business plan of the company, tenure of the loan and the general policies of the financial institution also plays a major role in determining the interest rates, but by and large they have largely been reduced.
Tax Savings: Thanks to specific sections in the IT Act, a small business loan can also help in considerable tax exemptions, which is good news for any business. According to the rules, the percentage of the profit that is used for paying off the business loan is free from taxes and instead of worrying too much about the repayment the business can actually make some profit and the family can improve their lifestyle as well.
Business Expansion:The opportunities that a quick business loans provides for expansion is the most important benefit of all and the loan money gives the borrower to use the money to buy new equipments for the business, to rent new premises in a better location, to invest in marketing or buying one transportation for the business. The benefits it brings to a business and to the entrepreneur in terms of emotional and financial security is what makes business loans such a safe option.
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