If you are a micro, small, or medium-sized enterprise, you might need a constant and reliable source of cash flow. However, it is normal that this optimal condition is not always possible, and an extra line of credit has to be created to meet the business needs. In such cases, an online loan can help.
Earlier, taking a loan for business required a lot of efforts, paperwork and time. There were many hurdles to entry, especially for businesses of small and medium scale. However, with the ease of policies and encouragement by the government towards MSME sector, many sources have opened up for loans for business.
If you are a micro, small, or medium-sized business and want to take an online loan for MSME, here are a few different categories of loans available online that you can consider for your business.
1.Online Business Loan
It is advisable to take an online business loan instead of a personal loan. A personal loan may be easier to access but if you mix business and personal, it can create hurdles for your organization later. So, if you are opting for an online loan, choose a business loan MSME for your business to get favourable interest rates and repayment plans that suit your organization.
2.Online MSME Loan
Some online banking apps or financial institutions have a subcategory or a specific offering for MSMEs. If you are eligible and submit all the correct documents, you can get access to MSME loans easily. MSME loans may be of smaller cap with easier eligibility criteria, so if your business plan fits with an MSME loan better than a business loan, you should opt for the former.
3.Gold Loan
Yes, some MSMEs can even take out loans by pledging gold. This can be a good option for micro level enterprises which are not yet ready to commit to a full fledged online business loan. You just need to find the right app which offers these services, verify its credibility submit all the documents and collateral properly. Some online apps even offer gold loan at home services which you can opt for convenience.
4.Loan For Women
Many government schemes and businesses now actively encourage women entrepreneurs. Recognizing their unique challenges, many financial institutions now offer loans for women. If you are a female entrepreneur in need of financial assistance, you can now opt for an MSME loan for women from certain online loan applications. Such targeted MSME loans tend to have favourable interest rates and flexible repayment plan options.
Apart from these, you can also look out for online loan apps that offer loans to businesses of certain sectors and compare between them to pick the one that suits your business needs. If you are still unsure, you can use an MSME loan calculator which will help you determine the number of installments and the interest that you have to pay when you avail of a loan.
In any case, make sure to do your research properly, compare between apps, and submit all the documents carefully for a smooth MSME loan application process.