Unsecured loans that can be utilised to grow a new or current firm are known as “business loans.” It is a terrific option whether you need money for employing new employees, growing your company to new markets, investing in cutting-edge equipment, or paying off all of your obligations. Today, a large number of banks and NBFCs provide business loans with affordable interest rates.
As a business owner, you will eventually require access to business funding whether you are just starting out or expanding your firm. However, because there are so many diverse Business Loan programmes available, it can be difficult to evaluate them effectively and choose the ideal one for your company.
This is where an online interest rate calculator for business loans might be helpful. You can quickly compare the interest rates and payback periods of several Business Loan options by entering a few crucial pieces of information. It can assist you in making a better-educated choice on the business financing option that is best for you and your firm.
Features and Benefits
These online business loan calculators seem useful but why exactly should you use them? Let’s take a look at some of their benefits and features for you to take advantage of-
You can use a business loan calculator at your convenience, whenever it suits you. The calculator is accessible round-the-clock. You don’t need to schedule a meeting with a financial counsellor or a bank official. You can examine your possibilities for business financing on your own schedule.
It is quick and simple to use an online interest rate calculator. You can quickly gain a thorough understanding of the Business Loan market and the many options on offer.
You don’t need any previous corporate financial expertise or experience to use one because they are incredibly user-friendly.
There are no additional fees. Business loan calculators are available online for free.
The results are reliable, so you can be sure of their accuracy. The calculator utilises real-time data from numerous providers of business financing, so you can get accurate results.
6. Better Money Management:
Even if it’s a modest Business Loan for an MSME, you may better comprehend the cost differently. It can aid in more efficient financial planning for your business and more educated business expansion decisions.
7. More Options:
You have access to a variety of business finance solutions from numerous suppliers. As a result, you may evaluate loans and pick the one that is ideal for your business.
8. Enhanced Transparency:
Additionally, it contributes to the market for corporate finance being more transparent. Easy-to-read comparisons of various products enable lenders to start competing on pricing and provide clients with better offers.
9. Saves time:
It might take some time to submit a business loan application. By rapidly and simply determining the ideal market deals, it can save time.
10. Get professional assistance:
There is generally a professional available to help you if you have questions about how to use the business loan calculator or may want some assistance understanding the findings. The website that houses the calculator normally offers this service without charging.
How Do Online Business Loan Interest Rate Calculators Work
Now after learning about the usefulness of these online business loan calculators, many of you would be curious to understand how they work and how you can use them to your advantage. So let’s see the working process of these calculators-
Simply input the amount that you need to borrow, the loan’s purpose, as well as the period on the website of your chosen business loan interest rate calculator. After that, you must also enter your yearly revenue and the credit rating of your firm. Following that, the calculator will produce results that display the interest rates and terms of several business financing solutions.
All that is left for you to do now is to carefully compare the outcomes, you may select the best company financing strategy for you based on what interest rates you are comfortable with and that also suit your business needs.
Eligibility Criteria for Business Loans
A business loan calculator is a great tool, but before you can make use of this tool, you should know whether or not you are actually eligible for acquiring a business loan. There are certain criteria you must fulfil to be eligible for business loans-
First off, you must be an independent contractor.
Doctors, chartered accountants, and other professionals who work for themselves include self-employed non-professionals like traders and manufacturers.
Secondly, there are certain age restrictions as well. You must be between 25 and 65 years.
Additionally, you must have a minimum experience of three years in the business in the current industry and five years in overall.
Last but not least, the annual income (ITR) requirement must be at least ₹1.5 Lakhs.
Limited liability partnerships, partnerships and private limited corporations are some examples of business entities that may apply for a business loan.
Documents Required When Applying for a Business Loan
After checking your eligibility for the business loan, you must prepare certain documents needed to support your application beforehand. These business loan document are-
First things first, the loan application form must be filled out completely, including all required information and a passport-sized photo.
Additionally, you need to present identification documentation. Passport, MAPIN card, voter ID card, driver’s licence, and PAN card.
Aadhaar cards, voter identification cards, ration cards, telephone bills, leasing agreements, and power bills are examples of address proof.
To apply for the loan, you must also provide some financial documentation. two years’ worth of IT reports, six months’ worth of bank account statements, and two years’ worth of P&L and balance sheets that have been audited by a chartered accountant.
The final set of business loan documents that you must upload is proof of age, such as a passport, PAN card, or voter ID.
Now that we have covered everything you need to know about business loans and business loan calculators, you should be able to make an informed choice regarding your business’s financial requirements.
Q. What exactly is a business loan?
Borrowed money that may be used to assist an existing or new firm is known as a business loan. The money can be used to hire additional workers, grow the business, buy equipment, raise working capital, and other things.
Q. Can I obtain a business loan without providing any security?
A business loan is an unsecured loan. So, you can obtain a business loan without providing any security.