Though applying for a business loan by physically visiting your nearest lender’s office has been a norm for a long time now, practically it is not always possible. Especially things have changed a lot ever since the pandemic struck. Now you can apply for a business loan quickly within a few minutes and get approved. This is a blessing for small and medium-scale organizations that want immediate funds to fulfill various business requirements. Due to technological advancements, your online loan application process has become safer and easier than an offline loan application process. Let us find out why online business loan application is preferred by modern-day organizations.
Lenders who offer business loans online are also getting tremendous popularity because of the way they handle the loan application process. They are preferred over other financial organizations that offer business loans.
If you are applying for a business loan in delhi, we suggest you should apply for it online. This is because of the following reasons.
Faster processing time
One of the main advantages of applying for a business loan online is the time factor. If small entrepreneurs do not obtain the capital on time, they will lose the opportunity at hand or they will need to pay more to grab the same opportunity through other financial organizations. In such cases securing business loans through traditional finance organizations will take time as their loan application process is usually slow. It takes around 30 to 45 days the processing the documents. Thus, the actual disbursal of the amount takes much longer. If you want funds on an emergency basis, an offline loan application cannot help you at all.
However, things are not same with the online lenders. They do faster processing of the loan application and the subsequent verification of documents. Some lenders even process the loan application on the same day it is submitted and approve it after three or four days. Most importantly the money is disbursed to the recipient’s account within three or four days.
Also Read: Sources of business finance
With an offline loan application process, there is a lot of paperwork needed to be done. But with an online business loan application, you will require only a few necessary things such as your Aadhar card, PAN card, bank statements for 6 months, identity proof, ITR of last 1 year, etc. The lenders do the verification of these documents through governmental portals.
Freedom of repayment
The flexibility of repayment is another factor that is found in the online business loan application process. Online lenders give you the freedom to choose the repayment tenure under various options to suit the individual financial condition of each borrower. This helps the business owners to pay back the loan without any stress.
Evaluation of eligibility criteria
The eligibility for the business loan is the same whether you apply online or offline. But the checking of the eligibility factors takes much time if it is done offline. This happens because, with an offline loan application, you will go to the financial organization and have a face-to-face discussion with the loan officer about how much loan you will be eligible to get. On the other hand, with an online loan application, the loan limit is already given on the lender’s website. You can check the limit all by yourself by clicking on the eligibility form. When you put the requested details on the form it will immediately tell you. Whether you are eligible to get the loan or not irrespective of the location. Though you cannot bargain the loan amount online, you can find many such lenders who offer loans at the most competitive interest rates to take part in the competition.
The benefit of an online business loan application is that as a borrower you can use an EMI calculator. An app essentially featured on all online lender’s websites. To have an idea of how much you can avail even before applying for the loan. This further helps you to compare different lenders online within a few minutes to grab the best deal in the market. This kind of comparison is not possible with an offline loan application.
Customization credit facility
The repayment capacity is one of the vital factors that every lending organization looks at while giving away business loans. The lenders usually determine the loan interest rate and other terms depending on your individual requirement. Because of this, the lenders offer several business loan options for the borrower. To present the best opportunities to avail of the loan. This kind of customized credit facility is present with online lenders.
One thing you should remember is that while applying for a business loan. You should always examine how a specific type of loan will cater to your requirements. Once you become confident about a certain type of loan, you should start the online loan application process. As we have stated, the business world is rapidly changing after the pandemic. And it is adjusted to the current scenario where people prefer to stay indoors and carry out their activities. So, seeing this, an online business loan application is preferred over an offline loan application. If you are looking for a business loan in delhi or other locations it is better that you should apply online by finding a good lender.