How To Get A Long-Term Business Loan For A Fresher In India?

If you're considering applying for a long-term business loan, take these quick steps to get started. To know more visit us online at IIFL Finance.

18 Sep,2022 18:51 IST 222
How To Get A Long-Term Business Loan For A Fresher In India?

Entrepreneurs with a recently formed business need capital for scaling, expanding, and sustaining in the long term, which they secure through a business loan. However, as the business is new, they don’t have enough cash flow to repay the loan in a short period with high EMI amounts. In such a case, an ideal option for entrepreneurs is to take a business loan with a long tenure.

What Are Long-Term Business Loans?

When business owners take loans from lenders such as banks and NBFCs, they must repay the loan within the set loan tenure. The loan tenure for business loans can stretch anywhere from 12 months to 60 months, which effectively constitutes the period within which the borrower has to repay the loan.

Long-term business loans are a type of loan product with a high loan tenure to allow the borrowers more time to repay the loan. Such loans result in lower monthly EMIs as the tenure is longer.

Benefits Of Longer Term Loans For Business

Here are the benefits of long-term business loans:

1. Increases Creditworthiness

A credit score is one of the most influential factors in getting a loan approved. However, a good credit score is based on timely repayment of financial liabilities such as loan EMIs. A business loan with a long tenure will have more EMIs to be repaid, and when paid timely, it contributes to increasing the credit score and creditworthiness.

2. Nominal Interest Rate

The interest on long-term loans is nominal and lower than on short-term business loans. A high loan tenure directly affects the interest rates and the resulting EMIs. The higher the loan tenure of a business loan, the lower the interest on long-term loans.

3. Increased Savings

Business loans with a long tenure result in lower EMIs, which the borrower has to repay over a stretched period. Hence, borrowers do not have to pay as much as EMIs every month, leaving them with higher savings for other purposes.
Sapna aapka. Business Loan Humara.
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How To Get a Business Long With A Long Tenure For A Fresher in India?

Lenders such as banks and NBFCs have designed business loan products targeted toward fresher entrepreneurs with an operational business but want to scale it to new heights. If you are such a fresher, the first thing to do is research and compare lenders based on their loan tenure of business loans. Once you have found a quality lender and the ideal loan product tenure, you should ensure that you fulfill the eligibility criteria. Afterwards, you just have to fill out the application form and submit relevant documents to get your business loan with long tenure approved and disbursed.

Avail Of An Ideal Business Loan With A Long Tenure From IIFL Finance.

IIFL Finance is India’s leading financial services company that provides comprehensive and customised business loans in India with both short-term and long-term tenure to fulfil your capital requirement. IIFL Finance business loan offers instant funds up to Rs 30 lakh with a quick disbursal process. The loan for the business application process is entirely online with minimal paperwork, an attractive interest rate and flexible repayment options.


Q.1: What is the loan tenure for IIFL Finance Business Loans?
Ans: The loan tenure for IIFL Finance Business Loans ranges from 12 months to 60 months.

Q.2: What are the interest rates on IIFL Finance loan for e-commerce?
Ans: You can take a business loan for an e-commerce company with an interest rate starting from 11.25%.

Q.3: Do I need to pledge collateral to take a business loan from IIFL Finance?
Ans: No, IIFL Finance business loan does not require pledging any asset as collateral to take the business loan.

Sapna aapka. Business Loan Humara.
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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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