Metro cities are the popular home to offices of global companies, promising start-ups, and numerous business concerns. Naturally, the demand for a business loan is higher in these cities. To serve this demand, almost every financial enterprise tries to maintain a presence in metro cities. If a metro-based business considers a business loan, there are various unique features and aspects that it needs to consider, which would otherwise not be applicable in the rural or sub-urban financial services landscape.
We look at the various aspects that businesses need to keep in mind while applying for a business loan in a metro city in India.
Weigh your options
One of the great benefits of operating a business from a metro city is the presence of numerous borrowing options. The presence of the leading private and public sector banks can be seen across the country. This means that you have a greater number of options to choose from and shop around for a business loan. Choose the right one that offers competitive business loan interest rates and flexible repayment options so that you are not overburdened with the responsibility to pay back the loan.
Get the paperwork right
The basic KYC document requirements are usually the same, no matter the city you live in. However, some documents might differ from city to city. For example, if you are in Delhi, the shop and establishment certificate would be different from any other town or city. Some lenders may ask for the GST certificate of the business. As such, you will have to understand the documentation requirement of your selected lender and obtain such documents beforehand, be it a utility bill or a rent agreement notarized at the local court.
Maintain a good banking record
A bank statement, usually for the past six months, is an important factor in determining business loan eligibility in any location. While applying for a business loan in a metro city, having a bank statement with a good transaction history can reassure the prospective lender. Transaction values are generally higher in cities, and the same should reflect in your bank statement too. This shows that your business is active and is an added incentive for issuing a business loan.
Healthy credit history
The repayment history of the business is an important consideration in processing business loans. A healthy credit score improves the chances of loan approval with more favorable loan terms. With a better credit score, the business loan interest rate can also be significantly lower.
Business loans have helped many metro-based self-employed individuals, as well as partnerships and companies. Avail of a business loan to fulfill your operating requirement, business expansion plans, and other financial needs.