Loans and Credit

In this real world you cannot think about growth before birth . In the case of business finance is the root or the very foundation of any company or production, it has a beginning and its growth fully depends on the investment or funding which is done through a Commercial Loans. They are basically business loans , which may be used for starting new businesses or for financing the expansion of any established one. These type of loans are available from '50,000 to '50,000,000 and lenders offer up to 79% LTV (Loan to Valuation) with variable rates which depends on your credit history, personal standing, etc. The decision of taking one commercial loans must be fixed in between 1 to 5 days and can be available for 12 months to 25 years.Whatever, there are some specific loans available for precisely this function that are termed under the category of business or commercial loans. It is very popular category of loans offered by almost all banks in both public as well as private sector. This type of loan always help traders, businessmen and professionals, start or expand their commercial activities.This type of loans not only help you to cover the cost of every aspect of your business requirements but also you can used to buy necessary equipments, recruitment of manpower, stationeries, renting office premises, expanding, improving business, etc. as your requirement. Mainly there are two types of commercial loans , which are Professional loans and trade loans .This type of loans are mainly for self employed professionals such as doctors, chartered accountants, etc. , may be the amount will be vary from bank to bank, but it is from Rs 25,000 to Rs 25 lakh .For this professional loans some documents is required Complete business plan, financial statements of the person Collateral to secure the loan if the loan amount exceeds Rs. 15, 00, 000, Incorporation documents, proof of ownership or sale certificate if the business was purchased , Credit references and tax returns. In trade loans there are given to traders and businessmen. Now a days trading requires heavy initial investment and flowing in continuous financial resources. It is for their set up or expand their which amount is from Rs. 25, 000 to Rs.35L, and for that some banks may be asked for security or collateral.For this trade loans some documents is required , which are residential proof , at least two years business existence proof, business place proof, last three year’s financial statements including Balance Sheet and P/L statement. In the commercial loans , may be professional or trade ,the interest rates always between 8 per cent and 15 per cent.