{"id":12933,"date":"2023-08-28T13:18:38","date_gmt":"2023-08-28T13:18:38","guid":{"rendered":"\/blog\/?p=12933"},"modified":"2024-09-19T16:59:25","modified_gmt":"2024-09-19T11:29:25","slug":"commercial-finance-from-nbfcs-a-guide","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/term-loan\/commercial-finance-from-nbfcs-a-guide\/","title":{"rendered":"Commercial Finance from NBFCs: A Guide"},"content":{"rendered":"\n<p>From infrastructure development, employment\ngeneration to wealth creation and capital formation, Non-Banking Finance\nCompanies (NBFC) play a formidable role in the financial sector of India. Often\nthe standard-bearer for commercial finance, NBFCs provide financial assistance\nto various Micro, Small, and Medium Enterprises (MSMEs) at highly convenient\nterms. <\/p>\n\n\n\n<p>Different enterprises can access a wide\nvariety of commercial finance to maximise cash flow and maintain operational\nexpenditure. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Business term loans<\/li>\n\n\n\n<li>MSME loans<\/li>\n\n\n\n<li>SME loans<\/li>\n\n\n\n<li>Machinery loans<\/li>\n\n\n\n<li>Working capital loans<\/li>\n\n\n\n<li>Overdraft loans<\/li>\n<\/ul>\n\n\n\n<p>Moreover,\ncommercial finance in India is available to self-employed professionals,\nprivate limited companies, sole proprietorship firms, public limited companies,\nand partnership firms. <\/p>\n\n\n\n<p style=\"color:red\"><strong>Additional Read:<\/strong> <a href=\"https:\/\/tata-blog.osian.dev\/blog\/wealth-management\/benefits-of-a-term-loan\/\">Top\nBenefits of a Term Loan in India<\/a> <\/p>\n\n\n\n<p>Here is a comprehensive overview of\ncommercial finance from NBFCs:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Application process<\/strong><\/h2>\n\n\n\n<p>There are five primary steps to obtain a\ncommercial loan from NBFCs:<\/p>\n\n\n\n<p>Step 1: Choose a suitable NBFC and apply\nfor a business loan online or offline.<\/p>\n\n\n\n<p>Step 2: Once you receive your eligibility\ncriteria, furnish the requested documents.<\/p>\n\n\n\n<p>Step 3: Next, the NBFC will verify your\nloan application and furnished documents, usually involving a personal\ninterview. <\/p>\n\n\n\n<p>Step 4: Once the required documents are\nverified, NBFC approves the loan and starts the loan sanction process. <\/p>\n\n\n\n<p>Step 5: Finally, the NBFC disburses the\nrequired loan amount in the bank account of the borrower. <\/p>\n\n\n\n<p>In addition to the application form,\nborrowers may need to submit a loan processing fee. Also, the applicant may\nhave to pay variable charges, including stamp duty, pre-payment charges,\namortisation fee, cheque swapping fee, and more.<\/p>\n\n\n\n<p style=\"color:red\"><strong>Additional Read:<\/strong> <a href=\"https:\/\/tata-blog.osian.dev\/blog\/wealth-management\/planning-to-avail-a-working-capital-loan-it-just-may-be-the-best-thing-for-your-business\/\">Planning to avail a working capital loan? It just may be the best thing for your Business<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Eligibility criteria <\/strong><\/h2>\n\n\n\n<p>Eligibility criteria are usually different\nfor different NBFCs. Nonetheless, specific requirements remain the same across\nNBFCs, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Applicant should meet the minimum annual income\nrequirement as a company<\/li>\n\n\n\n<li>Company in need of the loan should be business\nfor a considerable amount of time<\/li>\n\n\n\n<li>Applicant should be able to meet the age\ncriterion, usually between 21-65 years<\/li>\n\n\n\n<li>The business should have an upward turnover\ntrend<\/li>\n\n\n\n<li>The company should show only incur profit for\nthe last three consecutive FY<\/li>\n\n\n\n<li>The business should be able to deliver a balance\nsheet audited by a registered CA<\/li>\n<\/ul>\n\n\n\n<p>Besides, companies should prepare the\nrequired documents well in advance and improve the chances of loan approval. An\nNBFC usually demands the following documents: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Filled loan application form<\/li>\n\n\n\n<li>GST returns <\/li>\n\n\n\n<li>Income Tax Returns <\/li>\n\n\n\n<li>All the KYC documents of the company<\/li>\n\n\n\n<li>KYC documents of the business owner\/owners<\/li>\n\n\n\n<li>Company bank statements <\/li>\n\n\n\n<li>Balance\nsheet <\/li>\n\n\n\n<li>Board\nresolution<\/li>\n\n\n\n<li>Business\ncontinuation proof (Trade license, ITRs)<\/li>\n<\/ul>\n\n\n\n<p>Once the requested documents are verified, and the loan application is approved, NBFCs start the loan sanction process. Besides, loan disbursement is quicker in case of unsecured commercial loans as compared to secured ones. <\/p>\n\n\n\n<p>At Tata Capital, you can secure tailor-made\nfinance solutions to offset expenses when the profit is slow. Get quick and\neasy business loans at competitive terms, custom-built to meet your unique\nbusiness requirements. Enjoy flexible repayment terms and structured EMIs for a\nconvenient, hassle-free loan tenure.<\/p>\n\n\n\n<p>Get in touch for further details.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>From infrastructure development, employment generation to wealth creation and capital formation. <\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/term-loans\/commercial-finance-from-nbfcs-a-guide\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":12934,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[56],"tags":[],"class_list":["post-12933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-term-loan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Guide to Commercial Finance from NBFCs - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"NBFC vs bank: Know which\u00a0financial\u00a0entity to choose to get a\u00a0loan. 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