The majority of businesses start their journey with small steps and it becomes a difficult task to expand your business with your own funds. This is where business loans come into the picture. Whether you are into the restaurant or manufacturing business, you can expand your wings by making the most of easily available business loans. If you are wondering about the benefits of business loans, read on:
- Available at affordable rates
Financial institutions offer business loans in Mumbai and other cities. These loans are offered at affordable rates as there are special schemes to encourage small business owners to expand their businesses with confidence. There is strong competition in the financial market and you can expect business loans at attractive interest rates. The interest rates vary between 15 to 25 percent subject to the financial institution’s policies and your needs.
- Quick disbursal of funds
There are times when you need a business loan as soon as possible. With online processes and minimal documentation becoming commonplace, you can expect quick disbursal of funds nowadays. Loan disbursal can be as quick as just 2 days and for preferred customers, it can be instant as well. Quick disbursal of business loans makes sure that your business operations do not come to a halt due to the lack of funds.
- Flexible tenures
Banks and finance companies offer flexible tenures and repayment options. Whether you are looking for a short-term or long-term business loan, lenders have you covered.
- No need to share your profits
Lenders offering business loans in Mumbai say that getting funds from investors results in the division of profits. Getting a business loan from banks or financial institutions means your profits remain yours. You are liable to pay the principal amount and the interest according to the terms of your business loan. That’s it!
- Tax benefits
The list of benefits doesn’t conclude with attractive interest rates and quick disbursal. In fact, it extends to numerous tax benefits you can avail of. The Income Tax Act, 1961 allows you to claim a deduction on the interest rate. This deduction applies to your gross income.
- Improves your credit rating
Repayment of loan dues on time improves your credit rating by a significant margin. Your overall credit score is dependent on several factors and when you make your payments on time, it benefits your creditworthiness. This simply enhances your chances to avail of more loans in the future.
For more information related to business or mortgage loans in Mumbai, feel free to get in touch with us. Being one of the leading finance companies in the country, we will be more than happy to help you with your loan requirements.
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