Small business loans are a popular way of funding business expansions. The growing popularity has led to an expansion in the number of loan products that finance companies have to offer to suit various needs. Typically in the case of MSMEs, lenders prefer to sanction secured business loans. This is because of perceptions about track record, repayment ability, and credit-worthiness that may not always be completely accurate. Nonetheless, secured loans remain the most viable choice for small businesses in need of a company loan.
Your credit score is the first thing your bank will check before judging you on other parameters like your salary, other loan obligations, your repayment capacity etc. So, a higher Credit Score should ideally help you get a loan at more favorable terms.
Recently, one of the leading public sector banks has linked the rate of interest to the credit score. Customers having a credit score higher than 760 will be charged 8.35%, those in the range of 725 to 759 points will be charged 8.85% while those having credit score below 724 points will be charged 9.35% on home loans. This spread of 1.00% indeed asks for a regular monitoring of your credit score and immediate corrective action in case of any misinformation stated therein. Other banks are also likely to follow in taking such a step.
Just imagine you need some funds for your new business but banks are not willing to fund the new innovative business model. You don’t have much savings to fall upon to fund your dream project. You can still get a loan by mortgaging your property for that loan. In banking parlance, it is referred to as Loan against Property (LAP).
You can get a Loan against Property (LAP) against your existing residential or commercial properties. However, the value of the loan you can avail of primarily depends upon the valuation of the property. Further, the bank and financial institutions need to have sufficient cushion towards decline/ erosion in the value of the property so mortgaged. This is where the concept of Loan-to-Value ratio comes in.
Loan Against Property (LAP) is one of the most popular borrowing tools for SMEs mainly because LAP provides a win:win solution for both borrowers and lenders. From the borrower’s perspective, idle property is leveraged for long-term business needs while for the lender, the exposure is more than secured. Little wonder that LAP is expected to be one of the fastest growing credit products.
बिजनेस के लिए लेना है लोन तो मोबाइल ऐप डाउनलोड कर करें अप्लाई.
करोल बाग में छोले-भटूरे बेचने वाले कारोबारियों को लोन चाहिए था, लेकिन बैंकों ने उन्हें लोन नहीं दिया। बेटे ने गूगल सर्च करके लोनफ्रेम मोबाइल ऐप डाउनलोड किया और ऐप में ही ऑनलाइन फॉर्म भर दिया और 7 से 10 दिन में उन्हें 66 लाख का लोन मिल गया। लोनफ्रेम ऐसी मोबाइल ऐप है, जो कारोबारियों को लोन दिलाने में मोबाइल एग्रीगेटर की भूमिका निभा रही है। लोनफ्रेम कंपनी की शुरुआत अगस्त 2015 में सिंगापुर से हुई और मार्च 2016 में कंपनी ने भारत में शुरुआत की और अब एक महीने में 700 से 1000 करोड़ रुपए के लोन के लिए एप्लीकेशन कंपनी को मिल रही है। रोजाना 100 से 150 लोग लोनफ्रेम ऐप को डाउनलोड कर रहे हैं। ऐप को लेकर छोटे कारोबारियों में अधिक क्रेज हैं। लोनफ्रेम के को-फाउंडर ऋषि आर्य ने moneybhaskar ने बातचीत की। पेश है बातचीत के मुख्य अंश –
In an earlier article, we introduced the Loan Against Property (LAP) product and its key features. Here, we explore this product in a little more detail and discuss how it can be effectively ‘leveraged’ for your business loan needs.
A Loan Against Property (LAP), as the name implies, is a loan disbursed by a lender against property mortgaged by the borrower. This is a Secured Mortgage Loan that is generally long term in nature.
Marketplaces have always been the preferred shopping choice since forever. In the offline world, marketplaces that showcased a variety of products sold by multiple merchants made it easier for a shopper to pick and choose the best product at the best price. When this model moved online (with the likes of Amazon, ebay, Flipkart, makemytrip), ‘convenience’ got redefined and was taken to another level.
Dr. RP Singh is a consulting doctor working at a large hospital based out of Delhi with an entrepreneurial streak. He wished to start a new business, managing lab machines for clinics. Given the large, upfront capital investment required, he needed to get a business loan. However, getting a loan for his start-up at a reasonable cost was proving to be nearly impossible given the absence of a track record and the multi-geography nature of work and collateral.