muthootfincorp

Procuring business funding with bad credit can be a daunting prospect. Lenders view a bad credit score as a red flag. It can be discouraging to see the rejection for a business loan request just when your company is in critical need of fund infusion. But, getting business funding with bad credit need not be an insurmountable task.

How is it possible to get a loan for small business in India with a bad credit score? It can happen if you can persuade lenders with an alternative set of factors to determine creditworthiness. Your advantage lies in the fact that regardless of a bad credit score, there are several options for you to acquire business funding, thanks to the tremendous increase in the number alternative lending institutions. However, such a business loan may cost you a little more than if you carried a good credit ranking.

Here’s how to ensure you get your business loan requirements despite bad credit.

Create a convincing business plan

Draft a strategic business plan, which will project a substantial improvement from the current state of your business, and which generates positive revenues in the future. If you can manage to present your business as a viable association in the long run for the lender, you will be able to generate substantial business funding despite bad credits. This is a simple, straightforward strategy for obtaining those critical funds.

Go a step further and analyze why you ended up with bad credit. Tell the lender what measures you are going to take to improve the credit score, and why it will only improve from here on. Lenders clearly do not expect overnight changes, and may be willing to wait, provided you have a sound plan for the future. With a bad credit score, you are already in the red zone. You need a rock solid strategy for future operations in order to induce the lenders to sanction your business loan requirements. This makes a well-thought-out business plan of critical importance, one that will attract funding, and have potential to turn around your business prospects.

Get into partnership

This is another intelligent strategy. Sign up with a partner with good credit history and create a promising partnership. The partner can now apply for the loan and get the required business funding. Attracting a business partner may not be easy. But if you have that impressive business plan in place, you can definitely find one. Remember, what you want is a good business partner—not someone who adds to your woes. Before getting into a formal partnership in search of business loan requirements, give careful thought to how you want the partnership deal structured. It could be equal distribution of day-to-day activities, or a silent partner who simply serves as an investor and gives you free run of the business. Some investors may prefer to be 100% hands-on operators. Share your preferences with the potential partner and go ahead only if you both find common ground. Also, before finalizing the agreement, it is a good to agree on the repayment modalities—how the loan for business in India will be paid, who will be responsible, and so on. Occasionally, in their haste to save the business, owners end up signing a deal with partners who are hard to get along with—that is something to avoid at all costs.

Tap into your personal contacts

Approaching friends and family to ask for business funding may also be a good idea. Thanks to the long association and personal good will, you may stand a good chance of funding your business loan requirements, poor credit score notwithstanding. Such deals will work more on trust and that aforementioned solid business proposal. Nevertheless, prepare to face some tough questions and close scrutiny of your finances. Some personal lenders interested in business funding may wish to own a part of your business or hold an active management role in it. Make sure the decision is in the best interest of the business and not based purely on personal equations. Handle it firmly and professionally, and get the best possible deal for your business.

Explore loans from alternative lenders

Non-traditional lenders give you a better chance of procuring business funding even without good credit rating. Traditional lenders have a stringent processes, eligibility criteria and repayment terms for business funding tagged with bad credit, because of the attached risks. Their collateral requirement may also be much higher. Non-traditional lenders may overlook the risk, and be prepared to stretch the collateral requirement by a margin, but will in turn burden you with higher interest rates. If you are prepared to shell out more in return for immediate fund infusions, this option may be worth considering.

Whatever the source, it is advisable to be on track with your credit payments. Keeping them under control makes for sound business sense, and also eases the way for future loan requirements. Looking for business funding at the last moment, or entering into a hasty partnership to save your business are situations best avoided by smart entrepreneurs. A poor credit record need not mean the end of the road for you; being resourceful and adopting a well thought out strategy is sure to get you a loan for business in India form big financial companies like Muthoot finance

Owning a two-wheeler in India is a dream come true for many women. Scooters or two-wheelers is a ticket to independence for many women. However, the slowing economy has put a dent in the coffers for many. Many urban families have put off purchases of a two-wheeler.

Moreover, sadly, many used two-wheelers often become the first ride for ladies in urban Indian families. But you don’t have to compromise anymore. Select loan offers to purchase a new two-wheeler are here. 

Below are five features of these special offers. 

100% Finance

Companies, whether it be insurance companies or finance companies, consider women to be the better when it comes to handling finance. Various lending institutes offer up to 100% finance for women to purchase their dream two-wheeler. While loan schemes like Bharatiya Mahila bank finance up to 90% of the total costs, lenders like Muthoot Fincorp offer 100% financing options. So, if you are dreaming of getting a new two-wheeler, time to wait is over!

Low-Interest Rates

There are many different loan schemes to choose from for ladies. However, the most important deciding factors for most are the interest rates. Schemes like Muthoot Fincorp two wheeler loan for ladies start from as little as 0.99%. There are major banks in the business that offers loans as well. However, this is likely to be the best deal you will find. 

Income Proof 

Loan schemes for women are a pleasant surprise as ladies can avail two-wheeler loans with or without income proof under some plans. Moreover, you can also avail of a two-wheeler loan for ladies with asset proofs. While these options are also available to men, lenders do take the extra step for women. For example, Muthoot Fincorp two-wheeler loan for ladies can provide large sums at the start of their career with up to 1-year gross income as the loan amount at the beginning of your first job. So, put on that helmet and get ready to drive to work every day! 

Choice of Bikes 

When choosing a two-wheeler, you will find no shortage of opportunities. Schemes like Muthoot Fincorp two-wheeler loans for ladies’ finances electric vehicles, regular scooters, mopeds, and anything in between. So, if you like a bike you see on the road – do not hesitate to ask for its price. It can be yours if you wish.

Flexible EMI 

Loan schemes can vary widely when it comes to the loan durations. However, most loan schemes provide 4-5 years period for you to pay back the loan. It is excellent as if you purchase a two-wheeler for Rs. 60,000; you can pay the loan back with as little as Rs. 1,500 per month. Additionally, the small amounts will ensure that you never have to worry about losing your job or any other uncertainties in life. Great deal, right? 

So, are you ready to go for a long ride this Sunday afternoon? What about a road-trip with your friends? A bike is a ticket to freedom for most. Don’t let anything stop you from living your life to the fullest this year.