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Equipment Financing – 5 Steps to Apply And Vital Benefits

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Equipment financing is availed to either upgrade to a new version or revamp a broken piece. The buying and revamping of equipment are one of the key aspects of business operations in India. Every small and large business may have some equipment and financing one at the right time may lead businesses to newer heights. 

However, if you don’t have the required money to do that, you can rely on equipment financing.The facility is available in India from leading lenders. You can apply for business loan online and get a considerable amount as per your eligibility and lender’s policies. 

On that note, you can check out the benefits of applying for the equipment financing and simple steps to apply for it online!  

What are the benefits of equipment financing?

 

  • Large loan amount of up to Rs.45 lakh 

 

You can avail a considerable loan amount of up to Rs.45 lakh and fund your working capital needs. The loan amount can also be used to buy or upgrade to new equipment – something that may give wings to your firm. 

 

  • Unsecured loan 

 

You don’t need to submit any collateral to get the approval for the equipment financing. If your CIBIL score is 750 and more, you can get the approval for the unsecured equipment financing at a lower rate. In turn, it can help you repay reduced EMIs. 

 

  • Flexi loan facility 

 

The Flexi loan facility is offered by leading financial companies in India. Under the Flexi loan facility, you are free to use a portion of your total loan limit. You can withdraw an amount out of your total loan limit as many times as possible. The best thing is that you only need to pay the interest on the utilised amount as the EMI. This way, you can pay up to 45%* lower EMIs. The remaining principal amount can be repaid at the end of the tenor. 

 

 

  • Easy to meet eligibility and documentations 

 

Applying for the equipment financing in India does not mean running from pillar to post to know about the eligibility parameters and documents needed. It is because the precise eligibility norms and document lists are mentioned on lenders’ websites. One can go through the same and be better prepared. 

You are now aware of the benefits that the equipment financing can offer to you. You don’t have to worry if you wish to apply for business loan. Let’s check out the standard ways you can follow to apply for the equipment financing in India. It may differ from lenders to lenders.   

  1. Browse the website of the lender that you wish to apply for the equipment financing with. 
  2. Land on the equipment financing page and click on ‘Click Here’ to apply option. 
  3. Once done, a new online loan application page will open. 
  4. You will be asked to enter a few of your mandatory details on the online form and click on ‘Submit.’ 
  5. The representative of the lender will contact you with an offer that is suited best for you. 

You can land on the website of the creditor that you wish to apply the equipment financing with. It is because the application procedure may vary from lenders to lenders.

For availing the best possible equipment financing, you can compare all loan options. You can do that on a lender’s website and pick one that suits your needs and budget the most.    

Bajaj Finserv offers pre-approved offers on business loans, personal loans, home loans and more. It is to simplify loan processing and make it less time-consuming. You can check out your pre-approved loan offers today after sharing your basic details like your name and mobile number.      

 

   

       

 

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Finance

Tips to Help Motorists Secure Auto Insurance Quote Online

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Auto Insurance Quote Online

Car insurance coverage can cover the individual driver, passengers, the other motorist and pay for loss and damage costs in the event of an accident. A car insurance policy is an essential cover in most states. It is essential to shop before securing a cover from any provider because the cost for quotes varies. 

One of the most convenient ways to shop with minimal movements is online. Today, many insurance providers engage their clients online, allowing them to renew expired policies or purchase a new one. You can engage hershey auto insurance on their online platform and see how convenient it is. 

How to get an auto insurance quote 

You can get a free quote by using either of the following:

  • Quote comparison tool
  • Auto insurance broker
  • Direct online quote
  • In-person quote
  • Quote by calling

What next?

All of these methods of acquiring auto insurance quotes are effective n-but may vary in few ways. However, the basic requirements are the same. Make sure you have:

  • Personal information- for the multiple drivers in your household including teenagers. You’ll need to know their date of birth and occupation.
  • Information about the car in question- the model, make, vehicle identification number (VIN), and mileage.
  • Average miles per year
  • Record of your driving history and that of the multiple drivers’ too
  • Updated coverage details

How often should you shop for auto insurance quotes?

Insurance companies are in a competitive field and so quote costs get revised often. Motorists are advised to shop every 12 months when renewing their policy. It is also crucial to shop if you’ve moved to a different location or gotten married.

Comparison helps you find a different rate allowing you the opportunity to make a better purchase. When shopping, compare the difference in the limits, deductibles, and the cover.

The following issues can inform your decision to shop even when your policy runs valid:

  • Change in your marital status
  • Age bracket changes-e.g. from a teen to an adult driver
  • Moving in with family and deciding to combine policies
  • Move to a different location, thus different ZIP code.
  • A significant change in your credit score
  • Change to a job that needs less driving
  • Three years have elapsed since you violated traffic regulations or found at fault in an accident.

Should your current insurance provider operate in your new location, there’s no need to shop. Similarly, if you’re comfortable with the services offered, you do not need to change or shop.

Factors that determine auto insurance rates

One of the most significant factors to consider when shopping is the financial status of your insurance provider. A reliable insurance provider honors claims without fail. 

On your part, you must also be a keen driver, have a clean credit record to attract discounts.  A risky client pays more for auto insurance cover. 

Parting Shot

Car insurance cover compensates for your loss and damage in the event of an accident. Secure the best auto insurance cover by shopping online and comparing what each provider has to offer. When you settle for one, you can minimize the cover’s cost by asking for a discount, giving evidence for good credit history, safe driving record, and leveraging on your loyalty.

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Finance

Working Capital Loan – Everything You Must Know | Of Business

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Working capital credit

Working Capital Loan: Vital Aspects You Should Know

The primary goal of running a firm is making profits, but the underlying motive from the get-go is to never run into cash flow deficiency. But, as your business evolves and grows, deficiencies in working capital can become a recurring problem. And it’s in these stages of scaling that companies, especially small and medium ones, struggle predominantly. To that end, a working capital loancan relieve the financial distress caused by cash flow deficits and allow your business never to lose the positive momentum. However, it’s crucial to know the dynamics of this financing option to manage working capital more deftly.

Working Capital Loan: Meaning

It’s a short-term financing facility that allows businesses to fund their day-to-day operations. A working capital credit is excellent for resolving cash flow problems spontaneously, without any hassle. Several financial institutions in India, like banks and NBFCs, offer these loans.

Working Capital Loan vs. Term Loan

Take a look at their differences and how each of them are ideal for different use-cases.

Tenure – Financial institutions usually grant such loans for a repayment period of up to 5 years. However, it involves a shorter payment term for working capital credit, typically, 3 to 6 months.

Purpose – Companies avail a term loan to undertake significant business expenses that will have a long-term bearing. Working capital credit is usually acquired to meet the operating expenditures of a business, like buying equipment.

Eligibility – Financiers usually expect businesses to satisfy rigorous criteria to be eligible for a term loan. But, the eligibility criteria for working capital credits are less rigid and are easier to qualify.

Working Capital Loan: Types

1.    Equipment Loan

As the name suggests, this loan type is specifically customized to provide financial assistance to companies to buy new equipment or machinery. Such a loan usually entails an end-use restriction, meaning you cannot utilize the quantum for anything other than purchasing equipment.

2.    Bill Discounting

Numerous enterprises use the bill discounting service to finance their various working capital needs. With this facility, you can release the amount blocked up in unsettled invoices ahead of their maturity dates.

3.    Overdraft

It’s a line of credit extended by banks to various businesses. You can avail this facility if you are on good terms with your bank. An overdraft facility allows you to draw cash from your account even when its balance reaches zero but is capped at a predetermined limit. You can thus address your working capital concerns efficiently with such a line of credit.

Working Capital Credit: Eligibility Criteria And Documents Required

The eligibility criteria for a working capital finance depend on the type you’re availing and also on the financial institution. Usually, the parameters based on which a financier extends working capital finance are

  • Business vintage
  • Clientele
  • Annual turnover
  • Credit rating
  • The credibility of owners/directors

To give you a rough idea, a financier would usually be lenient to provide you with a working capital loan if your company holds a robust credit rating. You may need to furnish documents for verification. Hence, it is essential to keep all relevant papers handy. With such information in tow, you can easily apply for a working capital credit that suits your financial requirements.

Wrapping Up

Cash flow scarcity is a commonplace occurrence in any growing business, and a working capital creditis an ideal device to alleviate such monetary crunches. Working capital requirements will naturally vary across companies, and by gathering information about its features and different types, you can use this credit facility optimally.

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Finance

Things to Know Before Applying for Personal Loan

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An easy way to deal with financially difficult times, a personal loan could help manage expected and unexpected expenses as well as consolidate your debts. Whether it is paying for emergency medical bills, dealing with home renovation expenses, or funding your dream vacation, a personal loan does not have any end-use condition and can be used for any purpose. 

While they do not require any security or collateral, one must be aware of numerous visible and hidden charges associated with it before filing the online personal loan application. While the loan amount offered by the bank may vary depending on the candidate’s eligibility and requirement, one must perform an in-depth investigation of various associated factors such as credit score, processing fee, foreclosure charges, EMI amount, etc. before making a final decision.

Scroll down to know more about the things one should know before applying for a personal loan.

Things to Know Before Applying for a Personal Loan:

  • Compare Interest Rate

The rate of interest on the personal loan varies from bank to bank and one should perform a thorough research of comparing the interest rates offered for the same loan amount as it plays a crucial role in deciding the final repayment amount. Along with it, the borrower should also pay attention to whether the interest rates are fixed or floating during repayment tenure. Complete information about the interest rates can be gathered from the official bank websites or through the respective customer support services. 

  • Evaluate Multiple Charges 

While availing a personal loan from any issuer, the borrower should be aware of all the charges associated with it such as processing fee, foreclosure charges, late payment fee, etc. The bank usually levies a heavy fee to new borrowers and one must bargain to get a clear estimate of expenses and plan finances accordingly. In addition to it, make sure to identify any concealed charges such as cheque bounce charges, loan cancellation charges, etc. to avoid any mishap at a later stage.

  • Maintain good credit

A good credit health validates your ability to handle debts while a low credit score demonstrates bad debt management which might affect your loan application. Hence, you should pre-analyze your credit history and make sure to keep your CIBIL score above 750 to avoid any rejections. One can maintain a healthy credit history by paying their credit card bills in full and on time as well as not exceeding more than 30% of the credit utilization ratio.

  • Evaluate the EMI amount

EMI amount management is a key factor to focus upon while submitting an online personal loan application. The EMI amount can be calculated in advance based on the eligibility, loan amount, interest rate, and repayment period to close the loan on time.

  • Avoid fake loan offers 

The lenders offer gimmicky schemes on personal loans to the borrower which might provide a low rate of interest initially but prove to be a financial burden in the future. Be sure to read the fine print to understand the terms and conditions mentioned in the loan agreement carefully as most of the hidden costs and obligations are buried in the paperwork.

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