The state of Kerala has always been the leading tourist and business destination in India. Tourists from across the country visit Kerala to enjoy its scenic beauty, romantic ambiance and excellent infrastructure facilities. The thriving tourism industry of the state is the main reason behind this factor. However, lack of financial availability has not prevented people from enjoying the beauty of Kerala in terms of tourism and commerce.
There are several lenders in the state who are willing to help the small and new businesses avail a suitable business loan in Kerala. These lenders have a lot of advantages over other traditional financial institutions such as banks or other large financial institutions. The major advantage of approaching a lender directly is that the lender does not charge any kind of application or documentation cost which makes the process less cumbersome and time consuming.
There are two types of loans available for the businesses in Kerala. One type of loan is secured, loan and other one is unsecured type of loan. The former requires you to pledge any of your property as security with the lender in return of availing a loan. However, if you fail to repay the amount in time then the lender may confiscate your property. This is one of the major reasons for which people prefer to opt for unsecured form of loan for their small businesses.
Since the interest rates for the small businesses are comparatively low, they are a preferred choice of the borrowers from all the walks of life. At times, individuals also apply for a small business loan from their relative's home. However, it must be remembered that the repayment capacity of the borrower also matters a lot. If the individual has a good repayment track record then he can easily pay back his loan amount on time without any hassle.
There are various types of loan schemes available which can help you meet the repayment requirements of your business. There are secured business loan schemes which are offered by most of the lenders in Kerala. You can borrow funds at relatively low interest rates. Besides this, you can get a flexible repayment tenure. Therefore, it can be said that the interest rates and repayment terms vary according to the type of loan you take.
Unsecured business loan is generally provided on the basis of your future income. As a matter of fact, your future income or the revenue streams can be used to estimate the repayment capacity. If you are planning to start a new business then you can avail a low repayment plan. As per the rules and regulations, it is essential . . . . . . to make timely payment of the loan amount. For this purpose, you can consult your financial adviser or you can discuss your requirements with the concerned loan provider. Based on the profile of your business, your repayment structure can be chosen.
Business loan is categorized into two forms: secured and unsecured. For the secured business loan, you need to pledge some assets as security for the loan amount. These assets can be bought at any future date. Since the interest rates are little higher in case of secured loans, it becomes imperative for you to choose the suitable repayment structure. The repayment duration is also important in case of secured business loan.
Unsecured loan on the other hand is available without pledging any collateral. Since there is no need to place any security, the interest rates are quite low. Small businesses can also apply for online business loans from online lenders in Kerala. These loans are approved very quickly as compared to other loans.