Introduction
Many people have the desire to start a self-employment and grow into a great person with individuality and individual status. Let’s find out what to do about it. We approach the bank manager to start the business and ask for a loan to take the business we are going to do. Lending bank manager, the first thing that tests us is trust.
How to Debt Consolidation Loans – Getting a Debt Consolidation Loan, Even With Poor Credit But we have to make sure that we will succeed in this industry. Explain the activities of the business they are going to undertake.
Make sure you keep track of the miles you have and if and when they expire. Your commitment will only make it impossible for the lending bank manager to trust you. According to him, if I lose my job, I will do another job and pay off the debt, which will destroy our confidence. So put unrealistic confidence in the business you are about to undertake first. It will attract the bank manager.
To Start Business
Once you have decided that this is the business you are going to do, you need to prepare a plan for it. First you need to have information about yourself, who you are, what you were doing, and what you are going to do next. What do you know about the business you are going to start, how do you know, what innovations are you going to make in that business; Where to get the raw materials for you; Be clear about who your customers are. Have an approximate account of how much income you will get per month through this business.
Bank Procedures
The DSCR will definitely see the ratio. That is, if you earn Rs. 15,000 a month, you will get Rs. 10,000 to go, only if you have at least Rs. 5000 that is, you can easily get a loan only if the ratio is above 1.5. Make sure you have this income in the business you are doing and approach the bank and talk enthusiastically.
That is, the RBI has said that no mortgage should be sought for business loans up to Rs. 10 lakh rule. Due to this rule, loans up to Rs. 10 lakh are available without any mortgage. If the banks ask for a mortgage, it should be considered as an illegal act. Besides, to promote small and micro enterprises, the Central Government are lending up to Rs. 1 crore under the Credit Guarantee Scheme without any mortgage. But, you have to register to get a loan in this scheme.
You can only get a loan by mortgaging the assets you have at that time. If you need maybe two crore rupees, you can get a loan of up to one crore rupees without a mortgage through a credit guarantee scheme and a mortgage on the remaining one crore.
Let us know how much money we need in the business plan. We must have our own money in the ratio of at least 1: 4.5 of that amount. That is, if you bring in one lakh rupees as capital, the banks will lend up to Rs 4.5 lakh. This rule cannot be said to be permanent. Only very rarely do banks lend if it goes below this rate. Bank officials will decide on a number of factors, such as the business you do and the location of your business. However, first-time entrepreneurs may have difficulty accessing credit if they have less than this ratio of capital. So this is because banks expect investment in your business to be substantial.
Each bank sets a target of lending a certain amount per year. Banks lend in competition to that goal. But if credit is not available to entrepreneurs, it is because of a lack of proper planning. If your requirement is Rs. 25 lakhs, you can approach the nearest banks. They will lend themselves Rs. When it goes above Rs 25 lakh, each bank has its own small business branch (SME branch) to promote business loans.
If you approach the authorities there they will give you the advice you need and also below documents are needed,
- Certificate of Identity,
- Certificate of Address,
- Certificate of Address for Place of Occupation,
- Project Report,
- Income Expectation (Until Debt Repayment),
- Certificate of Barrier from Local and Other Government Offices (if required),
- Certificate of Occupation or Contract Certificate
If Rental Place Documents must be provided, Apart from these, what other documents are required will be in the loan application itself. If you give them too, surely the bank officials will buy your loan application and give you the loan you ask for and it will be helpful for your precious life.
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