- Overview of Business Loan in Patna
Overview of Business Loan in Patna
Patna: Business Opportunity & Landscape
The history and heritage of Patna trace back to the earliest history of mankind. Kusumpura (Patna), formerly the seat of the illustrious Mauryan emperor Ashoka, saw many name changes before becoming Patna: first, it was Pushpapura, then Pataliputra, and finally, Azeemabad to become Patna.
The city is also the origin of prominent styles of music, including Kajli, Khayaal, Dadra, and dhammar. Patna has traditionally been an important agricultural center and focus of commerce. Patna is an active exporter of grain, sugarcane, sesame, and rice. There are various sugar mills and factories in Patna City. It is a significant commercial and luxury brand hub in eastern India.
Here, the Greek philosopher Megasthenes resided during the reign of Chandragupta Maurya. The great 3rd CE traveler Fa-Hien and 7th CE traveler Hiuen-Tsang also examined and explored the city. Many notable intellectuals like Kautilya resided here, and works like ‘Arthashastra’ were authored in this area. In ancient times, this city served as the source of the fountain of knowledge, wisdom, and power.
The ancient Patna, or the current Patna City, had a wall all around at one point, the vestiges of which can still be seen at the entrance to old Patna.
As per the census of 2011, Patna’s population is 5,838,465 (Males – 3,078,512 and females – 2,759,953). The overall Literacy rate is 70.68 %. Hindi being the state’s official language, English is also used frequently. The local dialect is Magahi. Other dialects from other parts of Bihar spoken commonly in Patna include Bhojpuri, Hindi, and Maithili. Other languages spoken in Patna include Bengali, Urdu, and Oriya.
Patna has enjoyed major economic expansion since 2005. The economy has been propelled by a boom in the FMCG industry, service sector, and Green revolution enterprises. World Bank in 2009 named Patna the second-best city in India to open a firm. Patna’s GDP per capita as of 2015 was 1,06,000. The city’s GDP growth rate was 7.29 percent.
Patna’s average annual growth rate is predicted to be 3.72%, ranking it as the fifth-fastest-growing city in India and the 21st fastest-growing city in the world.
Why do you need a business loan?
A business loan may be a valuable tool for any entrepreneur. It is a major investment that may assist entrepreneurs in expanding their businesses and attaining new heights.
- A corporate loan gives Capital to preserve cash flow and Credits to attain more business demands.
- Use for any expenditure, such as acquiring equipment or products, paying debts, or hiring staff.
- You may employ the cash from company loans to get your firm up and operating, which will, in turn, assist you in building your credit and constructing your reputation as an established institution.
- A business loan may help you establish your own organization, or it may also aid you in increasing your present one.
Moreover, receiving finance for your firm without selling its shares is a fantastic approach.
Read More: How to Get Business Loan in HDFC Bank?
Reasons you should take a business loan in Patna
Some of India’s top banks and NBFCs have their headquarters in Patna. Do you need a business loan in Patna and are still determining your options? You’ve landed on the right spot. Keep reading.
Here are three reasons in support of Patna’s unfulfilled destiny, partly based on the World Bank’s report in 2009:
Starting a company in Patna is Easy:
Patna has been ranked 2nd for starting a company, only behind Delhi, and also took the top spot in the World Bank’s Ease of Doing Business Index in 2009, out of the 17 Indian cities analyzed.
Entrepreneurship in Patna is an affordable option:
In relation to income, Patna has the least expensive licensing fees for new businesses. The World Bank estimates that the process only consumes 38% of the per capita income.
Ample amount of land, perfect for developing inexpensive houses:
Patna has plentiful big stretches of barren land and copious river water. This offers lots of space for vertical expansion leading to additional housing units at cheap pricing.
Which are the best business loans in Patna?
Commercial loans are one of the finest ways to fund your company. Following are the various kinds of business loans accessible in the city:
Working Capital Loan:
Working Capital financing is not employed to acquire long-term assets.
These loans are granted to established enterprises to help with capital expenditure growth. Term loans offer flexible payback periods and little paperwork.
It is available for both SMEs and MSMEs sectors. Credit amount, Repayment duration, and interest rate differ from bank to bank.
Letter of Credit:
A letter of credit is a sort of credit limit utilized mainly in trading firms in which the bank or lender delivers a financing guarantee to organizations that operate in foreign trade.
Loans under Govt. Schemes:
The Government of India has introduced many credit programs for individuals, MSMEs, women entrepreneurs, and other organizations involved in the commerce, services, and manufacturing sectors.
Top 5 Banks & NBFCs Offering Loans in Patna
Kotak Mahindra Bank
For the demands of your business, Kotak offers a variety of specialized loans without collateral with various repayment choices ranging from Rs. 3 lakhs to Rs. 75 lakhs.
- The borrower must have been in business for three years and have a 40 lakh rupee yearly revenue.
- When the loan matures, the principal applicant must be 25 years old but not older than 65.
- Processing cost is 2% of the loan (+ GST)
The bank offers financial services to big and medium-sized companies, SMEs, and retail companies. A few of the many financial products available include working capital financing, InstaOD, import and export financing, and more.
- A loan of up to 50 lakh Indian rupees may be requested.
- The loan would have a 36-month payback term.
- Interest rates are between 14.25% to 18.50%.
- The processing fee is set at 2% of the requested loan amount.
Bank of India
Over the last several years, the Bank of India, one of the largest commercial banks, has dramatically expanded its local and international operations. The Bank of India provides its customers with various banking and financial products, including business loans to individuals, sole proprietors, companies, and organizations.
- All MSMEs who are involved in manufacturing or trade are eligible.
- The account’s rating must fulfill entry-level requirements and be at least investment grade, and units must have a valid GSTIN.
- Finances for operations of facilities (based on funds or without funds)
- Both the minimum and maximum amounts are equivalent to Rs. 10 lacs.
AU Small Finance Bank
MSMEs and other business groups can access secured business loans (against property) created to suit their development goals. Based on the property’s current market value, the bank gives the greatest amount of finance to assist you with working capital, growth, equipment acquisitions, and infrastructure requirements.
- A Rs. 2 lakh loan is the minimum amount.
- Easy loan offers and quick loan approvals.
- Complete guidance and total openness with the client.
- Simple and flexible loan repayment terms.
- Regardless of profile, location, or quantity, there are tailored loan choices for each company’s requirements.
- Both registered and unregistered businesses/entities are eligible for a loan.
Tata Capital’s business loans offer SME, machine, and equity loans. Every loan has options for structured EMIs that help you customize it to meet the demands of your business. This will help you forecast the behavior of your cash flow.
- Custom business loans vary from Rs. 5 lakh to Rs. 75 lakh.
- The interest rate is 19% per year.
- No need for collateral.
- There are 12 to 36 months between payments.
- The processing fees range from 1% to 2.5% of the loan amount.
Read More: How To Get a Business Loan in Tata Capital?
Conditions for loan eligibility
|Generally between 21-68 years
|Minimum of 12 lakhs p.a.
|Minimum of 1 year
|750+ or higher
|Pvt. Ltd. firms, MSME sector, Sole Proprietorships, Retailers, etc.
|Property ownership- residential/commercial.
Documents required for a business loan
The following documents are needed to be attested with your Business Loan application:
- PAN Card – For Company/Firm/Individual
- A copy of any of the following as identification proof: Aadhaar Card \Voter’s Card \PAN Card \Driving License \Passport ID
- A copy of any of the following as address proof: Aadhaar Card\Voter’s Card \Driving License\Passport ID
- Bank statement of the preceding 6 months
- Latest ITR, together with the calculation of revenue, Balance Sheet, and Profit & Loss details for the last 2 years
- Other Mandatory Documents
Process to apply
The process to apply Online:
- Visit the bank website and fill up the application form.
- Complete the KYC process.
- Documents will be attested.
- The application form will be validated.
- Get your loan authorized.
- The money will be credited!
Is a business loan available without security?
Yes, you may get a business loan without providing security or collateral.
What are the repayment options of a business loan?
PDCs, ECS, and Direct Debit are all methods of repayment.
How much money can I borrow in total with a business loan?
Depending on one’s credit score, you may be able to get up to 75 lakhs or even more.
What is the EMI amount for a commercial loan?
The loan amount determines your EMI. Please use Business Loan EMI Calculator to get your precise payment amount.
What is the repayment time of a business loan?
Your company financing has a maximum 36-month repayment period.
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