The number of young entrepreneurs in India in recent years has been significant, with most of them primarily occupied by start-ups.
As welcoming this inclusion is, financing remains one of the major concerns these venturists face two to three years after having set up the business. Thankfully, unsecured financing options like a business loan are easily available to young entrepreneurs against simple requirements.
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Tips to receive easy business financing for young Indian entrepreneurs
Entrepreneurship comes with inherent risks that may jeopardise the overall financing availability if not undertaken with caution. Also, given that the sustainability prospect of the venture and the prospect of unthoughtful business decisions underline the associated risk for lenders, financing can sometimes be a challenge for this segment of borrowers.
Here are a few tips for doing away with or at least reducing these risks for easy availability of business financing for young Indian entrepreneurs.
Check if you fulfill all eligibility criteria
Unsecured business loan options come with strict requirements for eligibility criteria fulfilment. Thus, the first step towards easy venture financing would be to see if you meet all requirements set by lenders in the market.
While the age and monthly income requirements are pretty simple, availing the unsecured loan usually requires you to hold a business vintage of 3 plus years. Plus, you also need to be a residing Indian citizen to avail funding.
Focus on loan affordability
When borrowing financing options like a small business loan, check if it is suitably affordable per your venture’s financial standing. To check affordability, you can use a business loan EMI calculator.
Through it, you can check affordability parameters like total loan liability, total interest payable, and EMIs payable for a prudent borrowing decision. Make sure to select a lender offering a low business loan interest rate to keep the cost of your loan in check.
Apply with a high credit score
Further, make sure that your individual and business credit scores are not lower than 750 as it is the ideal credit score to have when applying for loans. Check the score and work on your credit profile in advance if you plan to avail funding soon.
Apply under a Central or State Government-backed scheme
You must also choose a financing institution that is more eager to provide financing to young entrepreneurs than others. Better yet, find a lender that provides funding under a Central or State Government backed scheme to surpass this hurdle of lender willingness. There are several benefits of these MSME loans as well which can benefit the venture.
Lending institutions like Bajaj Finserv further provide pre-approved offers for quick and simple loan processing. You may get this offer on financing options like personal loans, business loans, and credit cards as well. Provide contact details only to check your pre-approved offer.
Once you have seen yourself through necessary changes to your borrowing profile per the available tips, availing a business loan becomes simple and convenient. Then, you can proceed to narrow down a suitable loan offer whose features fit right per your financing needs, and apply for it.