Many people are applying for a business loan but it might take a few days or weeks to approve it or reject it. But what exactly is the strategy to get as soon as possible business loan? Let’s understand here.
If you already have an account with a bank or financial institution, you may get pre-approved loan offers. These are usually for customers with good credit or healthy bank balances.
How It Works: The lender decides a loan amount based on your financial history and can give you the money quickly without needing a lot of paperwork.
Benefits: The approval process is faster, and interest rates are often lower.
Important: Ask your bank if you qualify for a pre-approved loan, as it can save you time and effort.
FinTech platforms have changed how loans are given by making it fast and easy for businesses. Search on Google “best fintech apps or platforms in India”.
How It Works: These platforms use technology to check your creditworthiness based on things like online transactions and GST filings, allowing for quick loan approval.
Advantages: You can get your loan approved in just 24-48 hours with little paperwork.
Important: Make sure your business has a digital presence (like using digital payment systems or filing GST online), as this can improve your chances of getting a quick loan from a FinTech lender.
A business line of credit is a flexible way to borrow money. You can take out funds as needed, up to a set limit. It works like a credit card but has better terms for businesses.
How It Works: Once you're approved, you can take money anytime and only pay interest on what you use.
Benefits: You get quick access to funds, lower interest rates, and can use the credit multiple times.
Important: A business line of credit is great if your business needs short-term financing often. Many banks offer this type of credit.
The government has created several programs to help Micro, Small, and Medium Enterprises (MSMEs). These programs offer quick loans at good interest rates with little paperwork.
Here are some popular schemes:
Pradhan Mantri Mudra Yojana (PMMY): Provides loans up to ₹20 lakh for micro and small businesses without needing collateral.
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE): Offers collateral-free loans up to ₹2 crore for small and medium enterprises.
Stand-Up India: Focuses on women entrepreneurs and SC/ST individuals, offering loans between ₹10 lakh and ₹1 crore.
Important: Applying through these government schemes can ensure quick approval as they are designed to meet the urgent needs of MSMEs.
If your business owns property, you can get a Loan Against Property (LAP) for quick cash. This loan usually has lower interest rates than unsecured loans and gets approved faster because it is backed by your property.
How It Works: You use your property as collateral, and you can borrow up to 60-70% of its market value.
Advantages: You can get higher loan amounts and faster approval, especially if the bank has already valued your property.
Important: LAPs are a good choice if your business has valuable property, but remember that if you don’t repay the loan, you could lose the property.
Collateral-free loans (or unsecured business loans) are great for businesses that don’t have assets to use as security. Many banks and non-banking financial companies (NBFCs) offer these loans to businesses with good credit scores and a solid business plan.
How It Works: These loans are approved based on your business’s financial statements, cash flow, and credit history.
Advantages: You get quick funds without needing to provide any assets as security.
Important: Because these loans are riskier for lenders, the interest rates might be a bit higher than secured loans.
Your CIBIL score is very important for getting a quick business loan. Lenders look at your score to see if you are a good risk. A score of 750 or higher gives you a better chance of approval and better loan terms.
How to Improve Your CIBIL Score:
Pay your existing debts on time.
Keep a good credit utilization ratio.
Don’t take too many loans in a short time.
Important: Regularly check your CIBIL score and fix any mistakes in your credit report that could lower your score.
Before applying for a loan, it’s important to check the eligibility criteria for different lenders. This helps you avoid wasting time on loans you can't get. Common factors include:
Annual revenue
Time in business (usually 1-2 years)
Credit score
Business type (like manufacturing, retail, or services)
Important: Always read the loan terms and conditions carefully and make sure you meet all the lender's requirements.
| Strategy | Details | Benefits |
|---|---|---|
| Pre-Approved Loan Offers | Check with your bank for pre-approved business loans based on your account history. | Faster approval with favorable terms. |
| FinTech Platforms | Use digital lending platforms for quick and hassle-free loans. | Approval in 24-48 hours with minimal documentation. |
| Business Line of Credit | Apply for a flexible line of credit to withdraw funds as needed. | Only pay interest on the amount used. |
| Government Schemes for MSMEs | Avail loans through government schemes like PMMY and CGTMSE. | Quick loans with minimal paperwork and lower interest rates. |
| Loan Against Property (LAP) | Use your property as collateral to get higher loan amounts. | Faster approval with lower interest rates compared to unsecured loans. |
| Collateral-Free Loans (Unsecured) | Apply for unsecured business loans through banks and NBFCs. | No need for collateral, quick approval for businesses with good credit. |
| Maintain a Good CIBIL Score | Ensure a strong CIBIL score to increase your chances of approval. | Better loan terms and faster disbursal with a good credit score. |
| Check Eligibility Before Applying | Verify loan eligibility criteria with different lenders. | Save time by applying only to loans you're eligible for. |
Getting a quick business loan is possible if you use the right strategies. You can use FinTech platforms, take advantage of government schemes, and keep a strong CIBIL score to access the funds you need quickly.
Always pick a loan that fits your business needs, and make sure you understand the terms before applying. With careful planning and responsible borrowing, you can create a strong financial foundation for your business and achieve long-term success.
How can EazyBankLoan help you in taking a loan?
We understand that getting a loan can be very stressful with confusing documents, unclear communication, and various other challenges. That is why we take care of your loan application process, saving you time and hassle by handling the paperwork and communicating with the loan providers.
Check the details here at EazyBankLoan
Need help? Reach out at support@eazybankloan.com
Depending on the lender, you can get a loan within a week.
Most lenders prefer a CIBIL score of 750 or above for quick business loan approval.
Yes, many banks and NBFCs offer unsecured business loans (collateral-free) based on your creditworthiness and business performance.
Yes, schemes like PMMY and CGTMSE offer fast business loans with minimal documentation and lower interest rates, especially for MSMEs.
FinTech platforms generally provide faster disbursal with fewer documentation requirements, but traditional banks might offer lower interest rates and more personalized services.
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