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Small Business Loans need to be borrowed by most small business entrepreneurs.

There are
many sources to secure a business loan for small business entrepreneurs. Banks, large business
organizations and government are all to too keen to lend a hand to small businesses in India.
Business Loans differ in need and character. Some small business loans are as follows
Micro loans
!icro loans refer to the small loans given to set up new small businesses. Though the amount
varies, the ma"imum term of repaying micro loans are generally si" years. #ou can get a !icro
loan if
$% #ou are trained in Business concerned
&% 'ave a good business plan
(% Stand to make a profit
Government loans
The )overnment of India being socialist in nature offers various kinds of loans to lend a helping
hand to its small business entrepreneurs. There is generally no limit on loan amount, convincing
the government official and certain amount is red*tapism is the issue. Some documents re+uired
$% ,omplete details along with a solid business plan stating the probable profits.
&% Schedule of repayment
(% The person applying should not have any criminal record.
The )overnment also offers special loans to worthy businesses or to the people who are
unemployable like
Loans for the elderly people to start a small businesses
Loans for the minority people to start small business
Loans for rent, e+uipment and other office e"penditures for the worthy small businesses
Loans from Banks
Banks provide loans to small businesses if its future growth prospect and prospective profit
figures are presented clearly to the bank. -therwise getting a small business loan from a bank
may prove difficult. There is .ebt and Interest associated with a bank loan and it is essential to
make a general agreement between the bank and the borrower. The several ways to ask for a
bank loan are
$% /e+uest for credit
&% /e+uest for partnership in small business
(% /e+uest for grants with debts
0% /e+uest for free assistance
Loans by Large Business Houses
Large Business houses too give loans to small businesses on a partnership basis. Before granting
a business loan, large business organizations consider not only the location of the small business
and the market of the business but also the growth potential of the small business involved. Some
types of business loans offered by larger business houses in India are
Franchise Loans * Some franchise companies provide financial assistance to the small
businesses or help them to get a loan.
Export Financing * These loans support e"port financing to small businesses. These loans are
provided only on the guarantee of timely repayment of the loan.
.ocuments needed to avail any of the above mentioned business loans are
$% 1 Business 2lan
&% 1 Statement of 2ersonal 3inancial Status
(% 2aper on ,ash 3low 2ro4ections
0% 2ast Business Ta" /eturns
5% 1 ,redit rating /ecord