Here's how NBFCs have eased business loan eligibility for MSMEs

Despite the expanding number of possibilities in the market, getting a business loan in India can sometimes still be a challenge. A borrower can now get a business loan from a bank or choose an NBFC as the lender. When it comes to NBFCs, some of them, like Kinara Capital, offer a rapid loan application process and reasonable interest rates on business loans with more flexible terms and conditions.

What is the process for applying for MSME loans?

Now that you have decided to apply for an unsecured business loan online, you should know that applying for MSME loans does not have to be a complicated process. The best way to get started is with an eligibility check on the lender’s website.Fill out the form with the relevant information and submit it through their website.

MSME business loan eligibility:
Business loan eligibility varies from lender to lender. But some of the parameters that must be fulfilled are:
● Your business must be registered
● You should have GST and Udyam Registration
● You should have an Aadhaar and PAN card

When applying for MSME loans, you must provide the following information:

● Registered CompanyName
● Business PAN card
● Address proof of the registered company address
● Company registration documents
● Bank statements for 6 months

These details can vary from lender to lender.

The role of digital processing

Borrowers that are now comfortable with applying for loans online, this has given a boost to digital lending. Smaller banks and NBFCs have benefited from the procedure, which has allowed them to provide better customer service, make better judgments, save money, and cut down loan application and approval turnaround times. On average, digital lending can handle corporate credit applications for SMEs in a day, but traditional lending can take as long as 3-4 weeks, if not more.

Why should NBFCs be the preferred choice?

NBFCs have simpler loan requirements, making them a better option than banks. Their lenient documentation requirements make loan acceptance simple and quick. Furthermore, because NBFCs are more flexible in dealing with such circumstances, a small business owner who is new to formal lending may get a loan. Their simple business loan eligibility criteria make it easier for micro-small-and-medium enterprises to get loans. They provide loans to entrepreneurs and small company owners in various industries to assist them in fulfilling their financial needs and growing their businesses.

Although it must be noted that not all NBFCs have easy business loan eligibility criteria, only some NBFCs like Kinara Capital have eased the lending norms. They offer machine loans, asset purchase loans and special loans for women entrepreneurs. Visit their website and explore more.