What are commercial loans in India ?

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What are commercial loans in India ?
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What is a commercial loan?

• Business owners use this loan to meet capital
  expenditures
• They can also use it to finance operational
  expenses.

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Commercial loan features

• Has predefined terms and conditions
• You need to repay the loan along with interest
  over a specific time frame.

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Different types of commercial loans in India
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Term loan

• Has a fixed repayment tenure
• Can be short-term or long-term

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Overdraft facility

• Even if your account shows zero balance, you can
  withdraw funds from it

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Letter of credit

• If you fail to repay the creditor, the financial
  institution will pay on your behalf

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Bank guarantee

• If you fail to meet your payment commitments,
  financial institutions will compensate the
  creditor's losses

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Collateral-free SME loans

• Unsecured loan, suitable for start-ups or SMEs

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Construction equipment loans

• Secured loan, ideal for businesses wishing to
  purchase construction equipment

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SME credit cards

• Available for village industries, retail traders,
  etc.
• Has a repayment tenure of three to five years

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Commercial vehicle loans

• Can be used to purchase a vehicle for business
  purposes

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Eligibility criteria for commercial loans

• Available to businesses and self-employed
  professionals
• You must have high turnover and consistent
  revenue flow
• You should have been in your business for at
  least a year
• You should be an Indian citizen between 21 and 65
  years

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Documentation for commercial loans

• Application form along with PAN card
• Business continuity proof
• Income proof

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• Before taking a commercial loan, research well
  about how it works, the options available, how
  the loan is approved, and more.

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Thank You !
Would Love to hear from you.
Hero Fincorp Limited
09, Basant Lok, Vasant Vihar, New Delhi -
110057
Tel [phone]
Email corporate_at_herofincorp.com
Website https//www.herofincorp.com/
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