Shriram Finance Business Loan

Shriram Finance calculates business loan interest using the reducing balance method. Under this method, interest is calculated on the outstanding balance of the loan, not the initial principal amount. This means that as you repay the loan, your interest charges decrease, making it a fairer method of calculation for borrowers.

 The choice between a line of credit and a business loan depends on your specific needs. A line of credit is flexible - you only borrow what you need and pay interest only on the amount borrowed. It's beneficial for managing ongoing operational expenses or unforeseen costs. A business loan, on the other hand, provides a lump sum amount and is useful for funding larger one-time expenses, like purchasing equipment or expanding operations. Consider your business needs, repayment capacity, and the cost of borrowing to make the right choice.

 Shriram Finance offers a maximum repayment tenure of up to 60 months or 5 years for their business loans. This period provides enough time for businesses to comfortably repay the loan in installments while managing their ongoing operational expenses.

 Shriram Finance accommodates a broad range of business registration proofs. These include the Goods and Services Tax (GST) registration certificate, a shop and establishment certificate, trade license, partnership deed, certificate of incorporation, and memorandum and articles of association. This wide-ranging acceptance of various forms of proof allows a greater diversity of businesses to avail their loan services.

 To determine your eligibility for a business loan from Shriram Finance, you can either visit their website or utilize their online eligibility calculator. The eligibility criteria include being a business owner or self-employed professional aged between 23 and 65 years at the time of loan maturity. In terms of business specifications, your business should have been operational for a minimum period of 3 years and should have a minimum annual turnover of 20 lakhs. Any previous loan commitments must be openly declared, and residential proof is a necessity.

Applying for a business loan from Shriram Finance is a simple and straightforward process. To begin, visit Shriram Finance's official website and select the 'Apply Online' option. You will then be prompted to input your mobile number, pin code, business registration status, and GST registration status. Following this, you'll need to provide your personal and business details, along with the necessary documents such as identification proof, address proof, income proof, and business registration proof. Once you've submitted your application, you will receive an approval status. If your application is approved, the loan amount will be transferred to your bank account within 24 hours.

 Shriram Finance does not require collateral for an unsecured business loan. However, for secured or mortgage-based business loans, collateral such as property, machinery, or equipment might be required.

 Yes, Shriram Finance applies a penalty of ₹500 per cheque bounce on their business loans.

Yes, Shriram Finance allows pre-closure of the business loan. You can close your business loan ahead of the tenure by paying the outstanding principal amount along with the applicable pre-closure charges, which are 5% of the outstanding principal amount.

 If a borrower fails to make timely repayments on a Shriram Finance business loan, the company charges an overdue penalty. This amounts to 3% per month on the overdue amount.

Unsecured loans are granted based on the borrower's creditworthiness and repayment capacity. The lender evaluates the borrower's income, credit score, business vintage, cash flow, and other factors to determine eligibility and interest rate.

 Unsecured business loans are beneficial because they provide businesses with immediate access to funds without the need for collateral. These loans can help businesses manage cash flow, seize new opportunities, expand operations, and even improve their credit score, providing greater financial flexibility.