Jaipur is one of the most famous cities in India for its heritage. The city witnesses many travelers from across the country and globe every year. And with that, travel and tourism is the most prospering business in Jaipur. The other big businesses in the city include traders, professionals, manufacturers, and service providers.
And as said earlier, Jaipur is the best location for holiday making, the city offers an excellent opportunity for small businessmen to improve and expand. But like all small business owners, the small businessmen in Jaipur as well sometimes face a shortage of fund. So, if you too are a small business owner in Jaipur and are facing a paucity of funds to run and expand your business, the best option for you is to avail a business loan in Jaipur.
You can choose to avail a secured or unsecured working capital loan. There are various financial institutions operating in Jaipur that help small business owners to meet their financial needs. These financial institutes offer business loans both online and offline. You can use the business loan in Jaipur to repay your financial liabilities and expand your small business. You can also invest more in your business to increase your sales and thereby profits.
What are the Various Financing Options available in Jaipur?
The rising lenders have become very popular in recent times and they offer various facilities and different loans to small business owners in Jaipur. The business loans in Jaipur are meant to be used for various small business related activities. And the funds availed under the loan should not be used for personal purpose.
Let’s take a look at some popular funding options available for your small business in Jaipur:
Unsecured Business Loans: The unsecured loans are the business loans which do not require any collateral hypothecation. The loans are approved on the basis of the creditworthiness of the borrower. The borrower can use the funds as per his discretion but only for business. The repayment tenure for unsecured loans ranges between 6 months and 24 months. This type of loan is ideal for small business owners as they are not always in a position to hypothecate an asset.
Secured Business Loans: Secured loans are the opposite of unsecured business loans. The business owner has to hypothecate an asset to secure the business loan amount. The loan amount can be used to acquire assets, furniture, machinery etc. The amount sanctioned by the lender is directly proportional to the value of the asset mortgaged by the business owner.
Working Capital Loan: Working capital loan can be secured and unsecured in nature. This type of loan is availed to meet the short-term financial requirements of the business. The usual repayment tenure is 12 months. Usually, the amount availed can be used to repay urgent expenses, such as taxes, payments, salaries, wages, utility bills, etc.
Machinery Loans: Machinery loans are the most popular type of loans among business owners. Machinery and equipment are the life of a manufacturing unit. An equipment loan can be availed to purchase equipment and machinery. And new machinery or equipment can help in upgrading the production capacity and improve the quality of the products. These loans are very beneficial for small business owners as machinery can impact the entire business production and thereby sales and profits. Most of the loan lenders in Jaipur and India offer machinery loans at minimal documentation and low interest rates.
Flexi Loans: Flexi business loans are a new type of loans that is becoming the most favorite of business owners. These loans are a type of overdraft facility. The business owner sanctions an amount limit for a time period. The businessman can withdraw funds from the account for any business purpose at any time without applying for a loan time and again. Simply put, he applies for a loan once but can take its benefits for the entire time for which the loan is sanctioned. Notably, the interest is only charged on the amount withdrawn by the business owner. And the businessman can repay the loan in easy monthly installments. The usual time limit for these loans is 12 months.
Debt Consolidation Loan: If you are running on various loans and find it hard to remember the dates of the EMIs, you can consolidate all the loans into one and easily repay it in EMIs. This also lowers down the interest rates. This facility is also offered by various loan lenders in India.
As conveyed earlier, unsecured business loans are an ideal option for small business owners who want to strengthen their business without affecting and stressing their cash flow. However, we would always suggest you to only avail the amount which is required by you. If you have availed amount more than your requirement, you will have to bear additional interest cost which will be a burden for you in a long time. And as your business starts to make profits and you have funds to repay the loan, you can also opt to foreclose the loan account – many lenders offer the facility of foreclosing loan account.