A small business loan is beneficial when some additional funds are needed for the business. Whether it be for purchasing inventory, investing in new marketing techniques, for the working capital needs, or expanding the business.
The business owner might need to take a loan for the second time for the business after applying for the loan the first time.
The second time loan can be availed from the same lender or a new lender. An important thing to decide here is if you want to opt for a secured loan or an unsecured loan.
The second time loan can be availed from an NBFC.
An NBFC gives loans at minimum eligibility criteria and documentation. The application process for an NBFC is also online. Once the application is filled, it is processed, it is approved/disapproved, and the loan amount is then disbursed just within a few days. So going for an NBFC can be beneficial.
Here’s how you can apply for a business loan the second time:
1. Search a lender
Firstly, decide on the lender, whether you want to avail the service of the same lender you had taken a loan from previously or you want to go for a new lender. If you go for your previous lender, it will be less time-consuming since your KYC documents will already be with them. But documents like the updated financial documents like the ITR and bank statement will have to be submitted.
If you go for a new lender, you may get the loan at a lower interest rate than before. And if you go for an NBFC, the loan application process will be much quicker.
2. Check the eligibility
Even if you avail the loan from the same lender, your eligibility would be verified again because of the change in the financials of the business over time. You can also check the eligibility criteria of the lender on their website.
3. Loan application and documentation
You will also have to check the terms and conditions of the lender so that you are sure that you can go ahead with the loan application process, are fine with the EMI of the loan, and you will be able to repay the loan amount of time.
Once you have checked the eligibility and the terms and conditions, you can apply for the loan. You will need to fill your personal as well as business details while filling the application form.
Next step is to upload the documents in PDF format or as asked by the lender.
4. Loan approval and disbursement
The lender will then process your application after verifying all the information and the documents provided. If the application is approved, the loan amount will be disbursed within a few days.
You will also need to sign an agreement, so make sure you read it carefully.
If you want to apply for a loan for the second time, you can get in touch with Gromor Finance for unsecured loans at affordable interest rates!