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Business » Business Loans |
Business Loans |
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Business loans are available to self employed professionals, firms and corporations, to meet their operating expenses, finance capital expenditure towards starting or expanding a business. Even industrial units are given business loans, to exchange existing high-cost debt from other bank / financial institution . Apart from providing funding, bank can also issue letters of credit or give a guarantee, on behalf of the client, to the suppliers and even government departments, for the procurement of services and goods on credit. Small Business Loans in India are offered under commercial business Loans only. Business Loans Interest Rates depends on the financial category or the professional background or the business echelon of the person who is willing to take the loan.
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The business loans are offered as professional loans in Commercial Loan rates to the professionals who practice in India as a Health Professional or any familiar field's professionals. The greatest amount of business loan that can be sanctioned varies from bank to bank. However, the minimum loan amount is Rs. 25000 and maximum loan tenure is 5 years. No security is needed for business credit up to a certain limit. For business loans above the limit, banks generally need a collateral security or a percentage of business loans as margin, in the form of fixed deposit with the bank.
Business loans are similar to an overdraft and are accessible like a limit on current account. In this case, the interest is charged only on the actual amount utilized, rather the entire amount of loan.
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