IDFC Bank gives impetus to small and medium enterprises with well-designed loans for business.
Every business needs a timely infusion of funds in order to progress. However, it is churlish to imaging that this infusion of funds will come only from bagging major contracts and regular prospects. Every business cycle is characterised by a lull followed by a period of high activity. But whatever the phase that your business is in currently, you still need funds to run the office and pay overheads.
Previously, banks in India were not amenable to approving loans for smaller businesses, citing lack of security and the company’s relative inexperience as two of many factors for refusal. But times have changed and the Indian banking sector today is more amenable to helping enterprises in the MSME sector. This is why leading banks like IDFC Bank have devised a range of small business loans to give a timely boost to businesses’ efforts for progress. These loans for business help companies realise their short-term financial goals while also charting out a course for the future.
What is an SME loan?
An SME loan is a small business loan granted to companies in the MSME space. It is bank funding that helps the company meet its goals; the company gets access to a structured loan for business which it agrees to repay at a pre-decided SME loan interest rate. The loan may meet needs like hiring new staff, new marketing initiatives, new product launches, inventory and warehousing needs, working capital needs, opening an office or warehouse in a new location, etc.
The online SME loans you can get from IDFC Bank
IDFC Bank offers different kinds of small business loans to the MSME sector. Leveraging the power of the digital medium, you can even apply for the SME loan online and have the approval for it in the shortest time frame. IDFC Bank has flexible repayment solutionas to offer as well.
The bank offers the following loans for business:
* Cash/credit overdraft: This is bank funding that is approved based on the applicant company’s annual business turnover. The bank issues an advisory on working capital requirements, flexible collateral, and good interest rates.
* Term loans: IDFC Bank offers term loans for business to companies that are looking to expand the size and scope of their operations, or venture into a new geographical territory or new market. The SME loan interest rate is the best in the industry, with a tenure of five years.
* FD-backed loans: This small business loan offers up to 90% of the fixed deposit amount already invested and the interest on it is charged as per prevailing FD rates.