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Will I Get a Business Loan after Corona Virus Slowdown?

Highlights

  • Get a Business Loan even during a lockdown happening due to Coronavirus.
  • Try to make an online request for the business loan instead of visiting the branches.
  • Check the Status of the Loan online and clear your queries through a phone call to the representatives.

The Coronavirus Outbreak has put the whole economy into a financial crisis. The Indian economy has also been affected due to lockdown and many businesses are getting into losses. Therefore, financial institutions can help you to get out of this problem through business loans. You can take a business loan even after the Coronavirus Slowdown and it might help you to bring your business back on the normal track. Every business needs working capital to run the business so you can borrow the sum required for working capital by taking the business loans. Apply for the business loan now to fight the financial crisis occurring because of the Coronavirus Outbreak.

Benefits of Taking a Business Loan

Most of the businessmen prefer taking an unsecured business loan rather than taking a secured business loan. So, as per the government orders, all the banks and ATMs are working during the Coronavirus slowdown and this gives you the opportunity to take a business loan in the Covid-19 Crisis. The business loans can help you to boost up the financial position of your business. 

Let’s see some of the advantages of taking a business loan during the Covid-19 Crisis.

Fast Disbursal

As per the government guidelines, everyone is advised to stay at home. So, in order to avoid social contacting, some banking institutions have digitalized the method for taking a loan. Now, you have to upload your necessary document on the bank’s website or sent it through email or WhatsApp to the bank’s representative. If the bank finds all the documents up to date then your loan will get disbursed into your account. 

The digitalized acceptance of loan application and processing all the formalities online has resulted in quick disbursal of the loan amount. It will also help the individuals to maintain social distancing and prevent Coronavirus from spreading.

Minimum Paper Work

Now, most of the banking institutions have minimized the paperwork for taking a business loan. They only need your residential proof, identity proof, and business income proof. If you are successful to prove your income, residential status, and your identity according to the requirement of the bank then you can easily get a business loan.

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All the paperwork has been digitalized by most of the banks to prevent the customer from getting into direct contact with any other individual. You can either upload all the necessary documents on the official website of the bank or directly send it to the bank’s representatives.

Competitive Rate of Interest

The banks provide a competitive rate of interest to their existing customers. So, in such a financial crisis you can take a business loan at a low rate of interest so that you can reduce the repayment burden.

If you are having an existing business loan then you can take a top-up on the existing amount at the same rate of interest. Basically every banking institutions have a different rate of interest on a business loan. Your relationship with the bank decides the rate of interest. If you are an old customer and have a good repayment record then you might get a business loan at a low rate of interest.

Longer Tenure

Most of the financial institutions give an unsecured business loan for a maximum of 36 months 48 months. But you can find some banking institutions that give a business loan for 5 years. But if you are willing to take a business loan for more than 5 years of tenure then you must take a secured business loan. In the secured business loan you have to keep some of your assets as collateral. 

Switch to Online Business Loan

All the banking institutions are working even after the Coronavirus Slowdown but it is not a preventive move to visit the bank’s branch and apply for the business loan. So you have the option to apply for the business loan online. Now almost every banking institution has their own website where you can apply for the loan and their representative will get in touch with you to process the loan further.

It is possible for you to take a Business Loan even after the Coronavirus Slowdown but you have to take certain precautions for doing so without getting into direct contact with anyone.

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Apply on Official Website

The only way to fight Coronavirus is to maintain social distancing. So, you must apply for a business loan online rather than visiting the branch. Almost all financial institutions have an online business loan application form that you can fill in order to apply for the business loan. 

You have to fill your name, income, PAN Card Number and the desired amount you want for a loan and then click on submit. Once the bank receives your request for the business loan, one of its representatives will call you to discuss further the loan amount, interest rate and tenure.

You can also apply by filling the form given above. The benefit of applying to Wishfin is that you have multiple options for the financial institutions to take a business loan. The representative of Wishfin will get in touch with you and suggest the best business loan plan to you according to your requirements.

Submit the Document Online

While taking a business loan always remember that direct contact with any individual is not good during the Coronavirus crisis. It is better to submit your documents online through an email or via Whatsapp.

You can ask the representative for the Whatsapp number or the Email Address in order to share all the documents related to the business loan. This online process of submitting the document will help in maintaining social distancing and prevents Coronavirus from spreading. If you are an ICICI Bank customer then you can use ICICI Stack API that is a digitalized platform for submitting documents and applying for the business loan.

Take Follow-up on Phones

You are free to call the bank’s representatives and take a follow-up of the process. On the other hand, you can check the status of your business loan online on the official website of the respective bank. The Coronavirus Slowdown will not affect your business loan application or getting the loan disbursal.

You will be also fulfilling the solo Moto for preventing Coronavirus Outbreak that is Maintain Social Distancing via managing your business loan status and application online and through phone calls to the representatives.

Clear the Queries on Calls

If you are having any queries related to your loan then you must avoid visiting the bank’s branch because it may be risky and unhealthy for your family. Just save the representative’s contact number and call him or her whenever you have any queries related to the business loan.

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Even during the Coronavirus Slowdown, you can get a business loan to bring back all the activities into the original schedule.

Documents Need to be Submitted Online

  • PAN Card of the Individual / Partnership Firm / Company.
  • One Identity Proof Voter ID / Driving License / Passport / Aadhar Card.
  • One Address Proof Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement
  • Ownership proof of either residence or office.
  • Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed 3 years old as the Business Continuity Proof.
  • Loan Sanction Letter, if you have any loan, is running or closed in the past 6 months.
  • Passport Size Photographs of all applicants and co-applicants.

For Self-Employed Individuals / Sole Proprietors

  • Latest ITR and financials for the last 2 years having Balance Sheet, Profit & Loss A/c., Computation of all Incomes.
  • Bank statements of the last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet.

Proprietorship for Self-Employed Professionals

  • Latest audited ITR of the last 2 years including Balance Sheet, Profit & Loss A/c., and Computation of Income.
  • Bank statements of the last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet.
  • Doctors, Architects, Chartered Accountants Professional Qualification Certificate and Degree Certificates.

Partnership Firms / Private Limited Companies

  • Latest audited ITR of the last 2 years including Balance Sheet, Profit & Loss A/c., and Computation of Income.
  • Bank statements of the last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet.
  • Partnership Deed and partnership authority letter for partnership firms.
  • Memorandum of Association and Articles of Association and Board Resolution from the company.
  • Certificate of Incorporation (COI) for companies.
  • Latest shareholding patterns for Private Ltd. / Public Ltd. companies.

Conclusion

Now, you can see that it is possible to get a business loan after Coronavirus Slowdown. But you have to take the precautions mentioned above. Try to keep social distancing and follow the online method to apply for the business loan. You can easily take the loan and improve your financial crisis even if you are lockdown. All you need is proper internet access and a smartphone, tablet, or laptops.

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