Myths about Business Loan - Busted

1. Myths about Business Loan - Busted Arrangement of funds for Business is quite simple using a business loan. Banks and other private lenders offer best business loan with attractive deals. There are many myths about Business loan which we often listen from others, be aware and don’t be misguide from them. Are you looking for Business loan for your business startup or expanding the business then Business loan could be a better option for funding. Business loan can help a borrower to expand their business, Invest in Office space, invest in Office equipments, and help to improve cash flow. But because of some myths about Business loan we often confused about business loan and its process. Some Myths are here about which you have to consider before applying a business loan - Business loans are inconvenient and difficult to apply A Good CIBIL track is not necessary for Business loan approval Personal loan is better than Business loan Use savings instead of applying a business loan Enormous Banks are the suitable place for applying a business loan Business loans are inconvenient and difficult to apply

2. We often listen from people that the business loans are quite difficult and inconvenient to apply. But with a good CIBIT track and fair documentation a business loan is more difficult as they say. For a fair business loan approval you only need following things- Good Credit History Reason behind your business Amount for which you are Appling Your Employer Your Monthly Income As compared to personal loan, a business loan needs less documentation. A good CIBIL track is not necessary for Business loan approval With the status of your business, your CIBIL track also matters when you are going to apply for a business loan. In facts a good CIBIL score is required for any kind of loan. A CIBIL score proves your worthiness. CIBIL score helps in the faster approval of the Business loan. Personal loan is better than Business loan There is a myth that personal loans are better than a business loan. But in real world, Personal loans are one of most expensive loan as compared to the business loan. Personal loans are unsecured loans so they don’t need any collaterals therefore they come with high interest rates. Business loan comes with low-interest rates as compare to personal loan and can be eligible for tax benefits. Use savings instead of applying a business loan People snuggest us to use personal savings for expanding or business startup. This is quite risky to use your savings for business. Suppose you use your savings for business and unfortunately business fall down then there will be nothing for backup. It may causes problem for you and your family. Result fully you will need to go for a loan with high interest rates. Enormous Banks are the suitable place for applying a business loan Avoid such stupid gossips and compare with different banks before applying for a business loan. Competing lenders provide various offers and money saving deals for business loan. Many Small banks and NBFCs offers best business loan at low-interest rate and with exciting offers as compare to the big banks. Avoid the myths about Business loan and go online to compare among various lenders for a best business loan. Choose the best bank and apply with Banknomics for easy interest rates and simpler approval process. Read our blogs for decoding the business loan myths.