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Small Business Loans

Small Business Loans need to be borrowed by most small business entreprenuers. There are many sources to secure a businees loan for small business entreprenuers. Banks, large business organizations and government are all to too keen to lend a hand to small businesses in India. Business Loans differ in need and character. Some small business loans are as follows:

Micro loans

Micro loans refer to the small loans given to set up new small businesses. Though the amount varies, the maximum term of repaying micro loans are generally six years. You can get a Micro loan if

  1. You are trained in Business concerned

  2. Have a good business plan

  3. Stand to make a profit

Government loans

The Government of India being soicialist in nature offers various kinds of loans to lend a helping hand to it's small businesse entreprenuers. There is generally no limit on loan amount, convincing the government official and certain amount is red-tapism is the issue. Some documents required are:

  1. Complete details along with a solid business plan stating the probable profits.

  2. Schedule of repayment

  3. The person applying should not have any criminal record.

The Government also offers special loans to worthy businesses or to the people who are unemployable like:
Loans for the elderly people to start a small businesses
Loans for the minority people to start small business
Loans for rent, equipment and other office expenditures for the worthy small businesses

Loans from Banks

Banks provide loans to small businesses if its future growth prospect and prospective profit figures are presented clearly to the bank. Otherwise getting a small business loan from a bank may prove difficult. There is Debt and Interest associated with a bank loan and it is essential to make a general agreement between the bank and the borrower. The several ways to ask for a bank loan are: