InvestorQ : What is a business loan?
Karim Sahu made post

What is a business loan?

Anusha Savla answered.
3 years ago

A business loan, like any other loan, is an amount lent by a bank or a non-banking finance company (NBFC). As the name suggests, the purpose of a business loan is to finance any requirement an individual may face in his/her business.

In such a situation, business loans can come in handy as they provide much-needed financial assistance to companies so that they can grow more competitively in their chosen markets. In other words, it is the financing you opt for to meet your urgent business needs. These needs can vary from expanding your existing business, to buying machinery, or boosting production, etc.

You can avail a business loan or an SME loan from various banks/NBFCs at attractive interest rates. You can avail of this loan without pledging any of your assets and get access to credit that can be repaid over a specific period of time.