Please help me sir, I want to start a small business and need a loan where the interest rate should not be very much high. Should I go to a bank or any other place?
For taking a business loan, you will first need to visit a bank, or a NBFC - Non Banking Financial Company, to know what their interest rates are. It is best to compare and choose a lender that has a competitive interest rate and is trusted by other small-to-medium business owners. Remember, most banks and NBFC’s will require some important documents before they sanction the loan, so make sure that you have -
A good Credit Score – You can negotiate a better interest rate.
A clear (and safe) Business plan – Risky businesses may attract a higher interest rate.
Healthy and Sound Financial balance sheet - If you are already running a business and applying for a business loan, the financial balance sheet (Profit & Loss statements, cash flow etc.) will be required by the bank/ NBFC for scrutiny.
Guarantee or Security- Interest rates can very depending on the loan against a Collateral security or Primary guarantee.
Wish you success and prosperity. Good luck!