Businesses need funds to grow and to run their business, while they need funds to run their day to day business, they also need funds to invest in long term business planning and investments for future growth. Such needs require term loans, which is essentially a long term loan under which businesses receive a lumps amount at the beginning and then need to repay the amount to the lenders which a predetermined amount that is to be paid periodically, most commonly it is repaid monthly using equated monthly instalments or the EMIs as they are commonly known as.
Some use cases of a Term Loan
Here are some common use cases of Term Loans across several business types and industries.
Hotels need to regularly revamp the customer convenience facilities and also timely add features like a conference set up for business clients or a kitchen and a bar set up all these require an investment that could be paid over a period of time. Term Loans help hotels to grow by getting the funds for such investments and also get better reviews by offering betters services and more offerings.
Restaurants nowadays need funds to invest in establishing delivery kitchens or the cloud kitchens as they are commonly known as they might also need funds to revamp the ambience and offer a refreshed menu which needs investment in kitchen equipment and so on. These investments can be made by utilising funds from term loans and could be repaid over a period of time.
The manufacturers need funds to set up a better infrastructure or invest in the modern pieces of equipment to increase the products that will help them to support future growth prospects. Such arrangements can be paid by utilising the term loans from the leading lenders and then the manufacturers could repay in easy EMIs.
Similarly, other businesses also need the funds to grow and invest in future, such funds could be availed with easy term loans from the top lenders. LoansJagat provides a simple and transparent platform where one can get access to over 40 Banks and NBFCs to get the best term loans for their business needs. the two commonly known term loans are:
- Secured Term Loans
The secured term loans are based on the value of collaterals like a residential or a commercial property which is evaluated to underwrite the creditworthiness of the business, the assets are hence pledged and a term loan is granted against the same. While a secured loan might fetch a better interest rate, it does take more time to avail the same and also not everyone might get access to the same as a lot of businesses run on rented or leased premises.
- Unsecured Term Loans
Unlike the secured loans, the unsecured term loans are based on business transactions and do not require any property to get access to business loans. The unsecured term loans are faster as they do not need property valuations and lengthy documentation. However, the unsecured term loans attract a higher interest rate as the lenders need to cushion their risk of providing unsecured term loans.
Whichever, term loan a business opts for, LoansJagat makes it absolutely simple for businesses to avail the term loans, Here’s the simple process to avail the best Term Loans using LoansJagat.
- Fill Basic Details - A user can simply fill the basic personal and business details to establish identity, it is a simple online form which does not require any documentation.
- Check Eligibility - One needs to provide information which is needed to establish the loan eligibility, this includes information like income, turnover, taxation information and so on. This is used by lenders to evaluate your creditworthiness.
- Submit Documents - LoansJagat enables a user to submit the documents online or also offline if it suits the applicant. LoansJagat provides a dedicated loan officer who helps users to complete their documentation. The documentation includes personal and business documents like identity proof, business registration, address proof and so on.
- Verification - The general verification of address and also user gets to evaluate the best offers based on the loan application.
- Sanction - As the applicant chooses the best-fit term loan offer by evaluating the terms and conditions like interest rate, tenure and other details made transparent and comparable by LoansJagat, the loan eventually gets sanctioned by the respective lender and LoansJagat notifies the applicant for the same.
- Disbursal - Post-sanction, the applicant is needed to sign the agreement and provide any other necessary documentation as may be needed by the respective lender. LoansJagat assists the applicant through the complete process and lender transfers the amount to the applicant’s bank account pot the same. The entire process is made simple and transparent by LoansJagat with a real-time update on the progress of the term loan.