Benefits of Term Loan
- Equity: Companies are able to raise capital without reducing their ownership stake.
- Tax Benefit: The interest component of a term loan is exempt from taxes. It is typically possible to deduct loan interest from gross business income.
- Flexibility: There is a lot of room for negotiation regarding duration, principal, and interest rate because of the longer tenure.
- Affordable: Short-term loans typically have extremely high interest rates. On the other hand, the interest rate on term loans is significantly lower.
- Extra Cash Flow: You can use the cash flow that results from taking out a term loan for other business endeavors, like hiring more staff or buying supplies.
Term Loan Eligibility Criteria
The requirements to be eligible for a term loan are listed below:
- The applicant must be at least 18 years old and no older than 65.
- A CIBIL score of 750 or higher is required for the borrower.
- The candidate must be creditworthy and have a solid repayment history.
- Candidates shouldn't have ever defaulted on a loan.
- Candidates must have a steady source of income.
Term Loan Document required
You must provide specific documentation to the lending organizations in order to support your application for a business term loan. An outline of the essential documents that are typically needed is provided below:
- Address Proof: To prove your business address, provide a copy of your Aadhaar card, passport, voter ID, driver's license, or bank statement from the previous six months.
- Current ITR: Income tax returns (ITRs) for the previous two years must be filed, along with balance sheets, profit/loss statements, and income computations that have been certified by a CA or auditor. This displays your company's financial performance.
- Documents for Business Registration: Submit a declaration for sole proprietorships, a certified copy of the partnership deed for partnerships, and certified copies of the board resolution approving the loan application and the memorandum and articles of association for corporations.
- Documents for Know Your Customer (KYC): Provide proof of identity and address for each promoter, partner, and director of the company, such as an Aadhaar card, a passport, a voter's ID, and a driver's license.
- Identity Proof: To prove your identity, you must present a copy of your passport, driver's license, voter ID, or Aadhaar card.
- PAN Card: The business, firm, or person requesting the loan must have this. The PAN card defines how the business operates.
- Proof of Continuation: To demonstrate that your company is still in operation, submit your ITR, trade license, and establishment/sales tax certificate.
- Additional References: During the loan evaluation process, submit any additional documents that the loan provider may request, such as bank account statements and business references.
How to apply for a Term Loan from Loan Walla
Step-by-step guide to apply for the Term loan
- If you are eligible for a Term loan, then click on the Apply Now to proceed.
- Enter your details on the form, such as
- Your Full name
- Valid Phone number
- Valid Email Address
- Select your state and City
- Choose the loan type and fill up the required loan amount
- Additionally, you can write some messages.
- Click the Submit Application button located at the bottom of the form.
Why Should You Choose Loan Walla Term Loan?
Choosing an appropriate term loan partner is a crucial decision for any business owner. By taking time to understand your precise financial requirements and comparing the costs and features, you can zero in on a term loan that's perfectly suited to your needs. Here are a few reasons why you should apply for a term loan with Loan Walla :
- Highly Competitive Interest Rates: We at Loan Walla are aware that term loans are intended to support entrepreneurs rather than to burden them. In light of this, we offer our clients business financing at extremely competitive interest rates, beginning at just 13% annually. This guarantees that your term loan EMIs stay within your means so you can concentrate on growing your company. Additionally, depending on your credit score, yearly turnover, business experience, and other qualifying factors, you may be eligible for the lowest interest rate on a term loan.
- Customized Loan Amount: You can select the loan amount at Loan Walla based on the specific financial needs of your company. A term loan can be applied for as little as Rs. 100,000 or as much as Rs. 90 lakhs. This guarantees that you can meet all of your business-related financial needs, including purchasing inventory, renovating your current workspace, hiring a skilled workforce, and much more. Additionally, you can even apply for a top-up on your term loan to obtain additional funding if the acquired term loan amount appears inadequate.
- Flexible Loan Tenures with Multiple EMI Options: You can choose the length of your term loan with Loan Walla based on your ability to repay it. A suitable tenure of 12 to 60 months is an option. You have the option to spread out your loan repayment over a longer period of time if you wish to pay back the entire amount in smaller EMIs. Otherwise, you can choose a shorter tenure if you want to pay back your term loan in bigger EMIs and pay less in interest. Additionally, if you choose a Structured EMI Plan, you can adjust your EMIs over the course of the repayment period.
- Minimum Documentation: You only need to submit a few documents to be approved for a term loan with Loan Walla. As previously stated, your KYC documents, business proof, income proof, and bank statements are all part of our term loan documentation. We'll make sure you won't have to scramble to secure funding for your company. From the comfort of your home or place of business, you can easily apply for business funding online and upload the necessary paperwork to our website. For a hassle-free borrowing experience, we can also set up the documents' doorstep pickup.
- Get Collateral-free Funding: Even if you don't want to risk your personal or business assets, you can still be eligible for a term loan with Loan Walla. We offer financing without collateral to make sure that financial difficulties never stand in the way of your company's expansion goals. However, you are more than welcome to pledge something as collateral in order to obtain the lowest interest rate on a term loan.
Conclusion
These term loans are among the most popular lending and borrowing options because of their many benefits, which include flexible loan terms, simple repayment through inexpensive EMIs, a simple application and documentation process, and low borrowing costs. A loan Walla is a finance company based in Ranchi that uses technology to give the borrower the money they need at the best rate without requiring any collateral. Term loans are loan arrangements with set terms for repayment.
