{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/how-do-business-loans-work\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/how-do-business-loans-work\/","headline":"How Do Business Loans Work?","name":"How Do Business Loans Work?","description":"SUMMARY: Financial aid in the form of a business loan can provide necessary capital to start or expand a business, purchase equipment, hire employees, and invest in marketing. IndusInd Bank\u2019s Business Loans offer opportunities for innovation, allowing businesses to stay competitive and seize growth prospects. Business runs on capital. Not only do you need money...","datePublished":"2023-07-17","dateModified":"2023-07-18","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/#Person","name":"IndusInd Bank","url":"https:\/\/www.indusind.com\/iblogs\/author\/indusind\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8169561f34fb61e737060f1a537a86e2?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/AdobeStock_111678099.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/AdobeStock_111678099.jpg","height":400,"width":1060},"url":"https:\/\/www.indusind.com\/iblogs\/categories\/manage-your-finance\/how-do-business-loans-work\/","about":["Manage your Finance"],"wordCount":973,"keywords":["business loan","getting a business loan"],"articleBody":"SUMMARY: Financial aid in the form of a business loan can provide necessary capital to start or expand a business, purchase equipment, hire employees, and invest in marketing. IndusInd Bank\u2019s Business Loans offer opportunities for innovation, allowing businesses to stay competitive and seize growth prospects.Business runs on capital. Not only do you need money to start a business, but also need extra funding during its key phases to grow adequately. But even before you apply for a business loan, it is important to understand why it is important, how it works, and other factors associated with it.Why Businesses Should Use Business LoansGetting a business loan helps a business seamlessly manage its expenses and focus on what it’s good at!Business Loans are commonly used to inject funds in the following areas-Startup expensesOperating expensesReal estate purchases or remodelling for existing premisesOverall debt consolidation\/refinancingBuying equipment or inventoryAcquisition, expansion or franchising needsMarketing and advertisingThe Process of Acquiring a Business LoanMost loan lenders have the same operating mechanism. A financial organisation lends you (the business owner) money for your business. In exchange, your business agrees to repay the loan (principal plus interest and fees) in regular intervals for a predetermined period of time.Here is a step-by-step guide:-Fill out the loan application (either in-person, or online)Provide required documentationThe lender runs a credit checkThe lender reviews the financials of your businessThe lender approves or denies your loan amount, or offers a lower amountYou sign the required loan documentsYou receive the loan amount in your business bank accountYou use the fundsYou make repayments as per the pre-agreed scheduleIndusInd Bank Business LoansIndusInd Bank\u2019s Business Loans give you timely cashflow that you can inject into your business to achieve your business goals with ease. Salient features of an IndusInd Bank Business Loan include:Up to a 48-month repayment windowUp to INR 50 lakhs of loan amountMinimal documentation, hassle-free processingDoorstep banking servicesGetting a business loan depends on a few factors. Most banks of repute typically want to make sure that they are lending money to trustworthy borrowers. IndusInd Bank requires the fulfilment of the following prerequisites for their business loans.Financial Criteria:Minimum TurnoverINR 1 crore in most recent financial year with audited financials for 2 yearsProfitabilityA positive profit before depreciation and tax (PBDT) in last 3 yearsPaid up capitalEqual to or more than INR 10 LakhsNon-Financial Criteria:Age of the borrowerBetween 25 – 70 years (for 2nd generation businesses, borrower\u2019s minimum age should be 21 years)Business vintageMinimum 3 yearsPast payment historyA clean repayment history for 12 months for a minimum loan amount of Rs. 4 lakhsOwnershipProperty ownership is requiredTake charge of your entrepreneurial dreams and get access to the financial support you deserve. Don’t wait any longer – apply for IndusInd Bank\u2019s business loan today!Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and informationShare This:"}