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What Is the Quick Way to Get a Business Loan?

Business loans are extremely important and helpful for ambitious entrepreneurs struggling to find the right finance. There are many quick ways to find a business loan.

You can avail of a loan for start-ups from a bank or any other financial body in order to raise funds for the business. The essential thing about loans is getting to know the interest rate charged by the bank or the financial center. The interest rate depends upon the amount of loan availed and the time to repay the loan.

Here’s an article that discusses 8 ways to get business loans and will prepare you to get an instant business loan. Here are some methods to get quick business loans, which will make it easier for you to choose.

1. Apply for government schemes

A. Pradhan Mantri Mudra Yojana (PMMY)

This scheme is under the Micro Units Development and Refinance Agency (MUDRA), and it offers loans to the following sectors; manufacturing, trading, and service sector activities. The scheme offers loans of amounts that range between Rs.50,000 and Rs.10 lakh. The following people can avail of the Mudra loan.

  • Artisans
  • Shopkeepers
  • Vegetable sellers
  • Machine operators
  • Repairers

B. Bank Credit Facilitation Scheme

This scheme is under National Small Industries Corporation (NSIC), which aims to provide business loans to MSME units. The NSIC partners with various other banks to provide this business loan. The loan’s repayment must be made between 5 years and 7 years, but it can be extended up to 11 years in special cases.

C. Credit Guarantee Scheme (CGS)

The Credit Guarantee Fund Trust heads CGS for Micro and Small Enterprises (CGTMSE). New and existing MSMEs can avail of this loan in the service sector and manufacturing sector but not educational institutions, retail or agriculture, Self Help Groups. An instant business loan of up to Rs.2 crore can be borrowed under this scheme.

D. Standup India

The SIDBI heads this loan scheme, and it extends to various enterprise sectors, such as the manufacturing, trading, and service sector. Under this scheme, loans can be taken between Rs.10 lakh and Rs.1 crore. The repayment of these loans can be made in seven years, while the maximum moratorium period allowed is 18 months.

E. Sustainable Finance Scheme

The SIDBI also heads this Business loan scheme, which aims to offer loans to industries that work in renewable energy, green energy, technology, and non-renewable energy. The government started this scheme to support the producers of clean energies and sustainable development projects.

F. (Website)

This is a digital platform to avail of an instant business loan to establish a new business. This scheme has eligibility criteria and can give loans of up to Rs.10 lakh under the Mudra Loan scheme, as discussed earlier. It can also give up to Rs.5 crore under the MSME loan scheme, also mentioned above.

2. Loans from Banks

Banks are often considered the top priority when availing of a business loan. Private and public sector banks are an option for this as they are a reliable and convenient way of getting money for businesses. Banks can provide funding through term loans and working capital loans. However, the rate of interest, the loan amount, and the repayment of the loan can differ from bank to bank.

3. Business Loans: NBFCs or MFIs

People who don’t have a lending history can find it difficult to avail of an instant business loan from private or public banks. In that case, you can look for Non-banking Financial Companies (NBFCs) or Micro Finance Institutions (MFIs) to avail of a loan for your start-up. You must remember that the rate of interest offered by these NBFCS and MFIs are comparatively higher, as compared to banks.

4. Business Credit Cards

Credit cards for getting a business loan have risen in recent years. If you require a loan that does not have a very large amount, then using credit cards for transactions and timely repaying the amount can be a good option. To avoid the debt or extra interest rates which are charged as penalties, credit cards can be an angel.

5. Crowdfunding

Crowdfunding is the collection of funds from multiple investors via the internet using social networking sites and various web-based platforms for business purposes. Crowdfunding web portals raise help to funds for social causes, charity purposes, unique ideas, disaster-relief, certain events, etc. This idea helps in giving an instant business loan to start-ups or new business owners and also, in some way, promotes socio-economic development.

6. Lending from peers

This type of money borrowing might not be very effective in obtaining a business loan. Nonetheless, it does work if you have good connections with financers. You can make a private individual or company invest in your business. No intermediaries are involved in this process. Lending happens at the disposal of the lender. Lenders can earn from borrowers as they set up their interest rates as compared to banks or NBFCS, and MFIs. RBI regulates peer-to-peer lending institutions because lenders create investment in the economy.

7. Look for an Angel Investor

Angel investors are individuals with surplus cash, and they are individuals who are interested in investing in new businesses in India. They can give you an instant business loan. However, there might be risks involved in these kinds of investments by Angel investors compared to financial institutions.

Hope you find this article helpful! Choosing the right way to obtain loans for business is crucial before getting a business loan. Quick business loans are the desire of all new fresh entrepreneurs. NBFCs like Lendingkart provide business loans to MSMEs without the hassle and help small businesses grow. A Business loan can help you achieve your dreams of being powerful and impactful.

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