For a business to get off the ground, it requires capital. It is essential for an entrepreneur to secure enough funds to set up operations, hire staff, procure equipment, technology, develop products and services and what not! So how does one get enough capital to start off? One of the easier ways is to apply for a business loan. Now, a business loan can be used for various purposes - whether it is to set up a new business or to meet requirements of a business which is already up and running.

How to apply for a business loan?
There are plenty of ways in which an entrepreneur can apply for a business loan. We have listed them down for you -
  1. Online application - One of the most common, and widely used methods in today's times, online applications are easy, simple and quick. The need for an entrepreneur to go a bank and submit a physical application is eliminated with digitization. Right from banks to NBFCs, everyone provides a seamless loan application procedure and you can submit your application in a matter of minutes. Another benefit of going through an online channel is that you can check your eligibility by yourself and also find out your credit score.
  2. Phone banking - You can also apply for a loan by reaching out to your bank via phone and place a request for a business loan. The bank then assigns a customer representative executive or a loan officer who will help you in submitting the application and then processing it later.
  3. Branch application - If you are not comfortable with the idea of an online application or placing your request through phone banking, you can always walk into the nearest branch of your bank and apply for a business loan. A loan officer will take you through the procedure in detail and help you submit your application.
Before you go about applying for a business loan, check your eligibility and also your credit score. If your score is not good, then take the necessary steps to increase it - for instance, you can pay off your outstanding debts immediately. Alternatively, you can also consider taking a joint loan with a partner whose credit score is good. This may increase your chances of getting a business loan. Apart from the credit score, make sure you have all the necessary documents and requirements with you. It is easy to get a business loan if everything is in order!

Find more about the business loans from Aditya Birla SME Finance.

* Terms & conditions apply. 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.