The first and safest option is to go to your nearby bank or the bank you maintain a financial relationship with to apply for a loan. But, before that, you do some research to get it done quickly.
Some of the schemes under which Bankers provide business loan are:
- Term loan
- Working capital
- CGTMSE Scheme
- Scheme for Financing against Warehouse Receipts
- Loan for Professionals
- Scheme for loans to Owner-Drivers of Taxi Cars, Three Wheeler, Station Wagons, Tempos, Etc.
A ready Business Plan:
Once you have researched the business loan schemes available with the Bank, prepare a business plan that is inline with the Bank’s scheme.
Passing the Bankers Interview:
The Bankers Interview is the next step in the business loan syndication process. As they say, “First impression is the best impression”, it is important to be well prepared for the Bankers interview to maximize the chances of securing the bank loan.
Do you have margin money?
The promoter must have some money that is will be invested into the business as equity from savings, friend, family or investors to match the margin money requirement.
What is the present and projected financial performance?
Bankers will delve into the financial portion of the business plan wherein the present and/or projected financial and operational performance of the Company is discussed in detail. Unlike venture capitalists or private equity firms, Banks typically do not fund losses and businesses that incur losses.