Small Business loans can be a new lease of life for many businesses. And, if you are an investor looking for an SME business loan – you are in for a pleasant surprise! According to a new report, over 64% of the loans distributed in 2018 were to SME Loans. The total loan amount financed to SMEs stood at a mind-boggling USD 16 trillion in 2017. But, unfortunately, that’s not the complete picture!
Many small business owners are failing to pay up. Nearly 16% defaulted on their payments in 2018. So, yes, while borrowing has gotten more comfortable, the repayment for various reasons isn’t really happening as it should. So, here are four simple steps to ensure your next SME financing gets you closer to your dreams.
Customized Interest Rates
If you have looked for small business loans, you must have hated financial institutions that do not put up the interest rates on their website? Right? However, this trend from specialized agencies is beneficial for customers. Major private banks cater to high-risk, and high loan amounts upwards of Rs. 1 crore. On the other hand, Many financial agencies specialize in SME business loan. So, if you are a small business owner, do look out for financial agencies which offer flexible and customized interest rate depending on your need and period of borrowing.
Borrow Small and Dream Big
Many SME loan lenders offer extremely flexible options. Nowadays, you can borrow as little as Rs. 15,000 with everyday repayment options if necessary. Such points are crucial points to consider for small business owners. If you own a medical store, a grocery store, or just any other small-sized business, you might always need a little extra capital to run your daily operations. The one who has rented their premises and needs working capital to move around swiftly will be hit the hardest. A small business loan will free you from your worries about the operations, get you moving quickly towards your profit-making objectives, and help you pay back without a sweat! Take a small step first – remember, every marathon starts with a single step.
Nil pre-closure charges
Many small businesses may feel harassed due to pre-closure costs after taking out an SME business loan. After all, why should you be harassed for paying your dues early? However, this is a common practice in the industry. So, be aware of the pitfalls and look out for financial agencies that do not charge for pre-closure.
A loan with Insurance Coverage
If you are planning to take out a significant investment committing to more than a year, perhaps getting insurance along with it is not a bad idea. There are financial agencies that provide coverage as part of the SME loan package. Loans can be a massive commitment to you and your family. So, when you are dreaming big to open that new store – make sure your family is with you in spirit at every step.
So, are you ready to sail the ocean of big ideas and adventure of being an entrepreneur? SME financing agencies like Muthoot Fincorp offer a wide range of loan features mentioned above. With their help, you will never feel away from home.