If you are planning to set up a business or willing to expand the existing one, and are in need of monetary assistance, Business Loan is the go-to option. To help you cater to your various business needs, Business Loans serves as the perfect solution to suit your requirement. Take the next step in shaping up your future while we have your back. Axis Bank Business Loan is designed keeping in mind the self-employed professionals and non-professionals for private and partnership firms, to utilize the funds for setting up business.
Axis Bank offers Business loans as Secured and Unsecured loans Business loans. As the name suggests, a Secured loan can be availed by securing the assets like, land, property, or machinery. Secured loans can be availed for a longer tenure and higher amount compared to unsecured loan where the borrower does not pledge anything to avail the loan.
In order to save their funds from getting defaulted, lenders secure the loans with specific assets. The biggest advantage of the loan is a low-interest rate and longer tenure. Since the loan amount is secured with an asset, the lender will be happy to offer a lower interest rate on your loan. Typically, the loan amount will depend on the value of your collateral. Your lender will hire a market valuer to estimate the value of a property or equipment and will decide on the loan amount.
While it’s not an idea everyone is in favor of, for offering collateral for your loan, it is how you get the most affordable financing for your business. When you refuse to offer a collateral to the lenders, your business will seem riskier and you will receive an expensive loan in the end. Collateral not only makes it easier for you to get access to funds but will also ensure that you get the loan at friendly terms of repayment.
The most important thing in any loan is the timely payment of dues. If you default, you could end up losing your valued assets to the lender. The lender will not sell your asset immediately as you default but he will take the necessary steps if the default continues. If you default for one month and have a reason for the same, the lender will not sell your property. However, if there is consistent default and the lender is of the opinion that you might not be able to make the repayment on time, he could take steps to sell the property in order to recover the outstanding funds.
Below we will discuss, different types of collaterals you can pledge to avail Axis Axis Bank Business Loan or you can also check sbi business loan online.
An alternative to collateral is a personal guarantee which helps secure the loan. When you agree for a personal guarantee, you become the cosigner of the loan. This basically means that your personal assets will be put on the line and not only your business assets. … Read More