HOME LOAN

A whole of money borrowed from a financial institution, banks, NBFC, to buy a house. Home loan comprises of a movable or settled interest rate and installment terms.

The property is sold to moneylender as a security till the reimbursement of the loan. The Bank/NBFC/ financial institution will hold the deed to the property or title deed till the credit has been paid back with interest due for it.

The maximum loan amount offered by banks is 90% of the present market value of the property and for NBFC this value is 80%. There are also certain tax benefits accessible on your home loan under section 80EE of the Income Tax Act. Be that as it may, the wage charge deduction can be claimed on home loan interest first time home buyers as it were.

WHY HOME LOAN?

Home loans make buying home a reality for individuals who need to claim property. Getting a home loan frequently takes a significant venture (closing cost, down installments, time to apply), but these forthright costs can be recovered by a property holder over time in case their property esteem increases in value.

BASIC CONCEPTS OF HOME LOAN

  • Principal amount: The amount that one is borrowing. This amount is typically the purchase price deducting the down payment, closing cost and other related fees.
  • Duration: The time in which you have to repay the entire loan. The duration of a home loan can range between 5-30 years.
  • The rate of interest: It is the yearly amount one need to pay to the shylock to borrow the money, shown as a percentage of the current principal balance.
  • The reimbursement frequency: It means how often one makes payments. Borrows usually pay back their loan on a monthly or weekly basis.
  • Borrower: The person borrowing who either has or is creating an ownership interest in the property.
  • Lender: It is usually, banks or the financial institution or NBFC.
  • Completion: Legal completion of the mortgage deed and hence the start of the loan.

 ELIGIBILITY CRTITERIA FOR HOME LOAN

Any person who wants to avail home loan must fulfill following conditions. These criteria may differ from lender to lender:

  • AGE: 18-65 YEARS
  • EMPLOYMENT: 2 years of experience (salaried class) and MIN. 5 years of experience ( self-employed class)
  • CREDIT SCORE: 750 or above

DOCUMENTS REQUIRED FOR HOME LOAN

Following are the basic documents required for availing home loan:

  • Age proof ( Birth certificate, class 10 mark sheet etc)
  • Address proof (voter ID, passport copy or utility bills etc)
  • Income proof ( salary clip or ITR details)
  • ID proof ( PAN, passport,)
  • Existing loan if any
  • Documents of property to be purchased.

HOW ASA WILL HELP TO GET HOME LOAN

Everybody wishes to have a house which they can call it their own. Well this dream doesn’t seem too far from reality to achieve. ASA will assist you in getting HOME LOAN from banks, NBFC’s or lender without much hassle.

Our team of experienced professionals will make you aware of all the interest rates from the banks or NBFC’s. Our experts will help you in getting the loan at the best interest rate.

Our advisors will provide you the best service they can and will do every possible thing to make your dream come to reality.

 

LOAN AGAINST PROPERTY

Loan against Property (LAP) is a loan that one avail by keeping their property as mortgage with the banks. The loan is agreed as a certain % of the (MV) market value of the property. Usually bank lends 50-60% of the value of the property.

Since, property is kept as collateral with the bank, it is a secured loan. In case any person fails to repay the loan, the lender has the authority to auction the property mortgaged and recover the money.

WHY LAP?

Loan against Property (LAP) can be used for any persistence, like:

  • Funding of child’s education abroad
  • Funding any medical emergency
  • Wedding of child
  • Funding the vacation
  • For Business Expansion

ADVANTAGES OF LAP

  • Lower interest rate: As the credit is taken keeping the property as collateral, the rate of interest is usually lower when compared to personal loan. Loan against property interest rates generally ranges between 12-15% while in case of personal loan the interest rate ranges between 15-25%. 
  • Lower to no prepayment charges: One can close the loan against property by making prepayments toward the loan. Lenders usually don’t charge prepayments charges in case of LAP. 
  • Easy to avail: As these loans are secured loans, banks are more than willing to provide these loans. Therefore, one will not find it difficult to avail this loan. 
  • Lower EMI: There is an inverse relationship between time period and EMI. Longer the time period, lower will be the EMI, and vice versa. 

PROPERTY TO BE MORTGAGED

A self-occupied house or a rented residential property or a piece of land can be mortgage. Although, it is important that the property must be free from any kind of mortgage of legal case. So practically, the title of the property should be clear.

ELIGIBILITY CRITERIA FOR LAP

The eligibility criteria for LAP may differ from lender to lender but following are basic factors which every lender might consider:

  • Borrower’s income
  • Debts
  • Savings
  • Track record of repayment
  • Market value of the mortgaged property
  • Employment status of the borrower
  • Age
  • Financial capability of the borrower
  • Credit score

INTEREST RATES AND TIME PERIOD

The rate of interest on LAP may range between 9-15% per annum, this although may differ from lender to lender. The time period of LAP can be between 7-15 years. Therefore, the borrower has the option to choose between a lump-sum and an overdraft facility.

DOCUMENTS REQUIRED FOR LAP

Following are the basic documents required by most of the banks or financial institutions:

  • Application form with attached photograph
  • Valid photo identity
  • Proof of current residence
  • Latest salary slips (MIN. 3) For salaried class
  • Proof of business existence with Proof education qualifications. ( for self-employed, professionals and business class)
  • FORM 16: With last 3 years of Balance sheet and P&L statements, ITR and business profile (only for businessman)
  • Bank statements for last 6 months and cheque for processing fees.

HOW ASA WILL HELP YOU AVAIL LAP

Financial setbacks are something which comes unannounced at the most unlikely time and will disrupt plans. So in that case LAP is something can help you out of those crises.

ASA’s team of experienced professionals will help you in availing the LAP at the best interest rates possible. Our experts will do all the necessary research about the banks and financial institutions and provide you the best service possible.

Since, these loans are available for longer period of time; our representatives will wisely and thoroughly assess your repaying capabilities and will also make you understand all terms and conditions that come with it before selecting LAP.

AUTO LOAN

An auto loan may be credit taken out in order to buy a motor vehicle. They are ordinarily organized as installments credits and are secured by the value of car, truck, motorcycle or SUV being purchased

An auto loan may be a sort of secured loan, which implies that the borrower must up an important thing to serve as collateral. In case the borrower is incapable to pay back the loan, the bank can at that point seize the collateral and offer it in order to recover their losses.

Since, auto credits are utilized to buy motor vehicles, the vehicles that’s being bought is what serves as collateral.

WHY AUTO LOAN?

  • Auto loans usually have lower rate of interest and one can choose the time period in which he/she can repay the loan which is usually up to 7 years. This makes the repayment of loan a lot easier. Having an amazing credit score can prove to be beneficial and one can negotiate the rate of interest with the bank.
  • The cool thing about getting an auto loan is that the borrower does not have to provide any collateral. The vehicle that is being purchased will serve as collateral. So the borrower does not have to put any of their assets as security.

WHAT FORMS AUTO LOAN?

Auto loans are generally formed as an installment loans which suggests that the credits is paid off in an arrangements of regular (monthly) installments. A typical auto loan will have a term that’s anyplace from 3-7 years long. The longer the credit is outstanding, the greater the sum of interest that accrues and the more the loan costs overall. In any case, auto loans with longer terms will ordinarily have lower month to month installments, as each installment will represent a smaller fraction of the principal loan amount.

Most auto loans are also amortizing which is a reasonable standard for installments credits. With an amortizing credit, each installment made goes towards both the principal and interest. This guarantees that each installment made goes towards paying off the loan.

RATE OF INTEREST

The rate of interest is the yearly rate fetched by a moneylender from the borrower on borrowing the cash for an auto loan. A moneylender ordinarily cites an interest rate as a yearly rate or APR which is the cost to borrow cash including additional charges and expenses. A borrower with great work and credit history generally qualifies for a lower interest rate, which comes about in lower installments.

TIME PERIOD

AN auto loan generally features a length of 3-7 years long. A longer-term loan ordinarily encompasses lower month to month installments than a shorter-term loan, but one has to pay more cash in finance charges over the life of a long-term loan.

ELIGIBILITY CRITERIA FOR AUTO LOAN

  • Age: 18-75 years
  • Salary: INR 10,000 (MIN.) per month
  • Employment experience: MIN. 3 years for salaried/self-employed & MIN.2 years for business/profession
  • Type of car: New or used
  • Residence area: MIN.1 year stay in urban/semi-urban/rural area

DOUMENTS REQUIRED FOR AUTO LOAN

  • Age proof
  • Identity proof
  • Passport size photograph
  • Residence proof
  • Income proof
  • Bank statement
  • Signature verification proof
  • Pro-forma invoice or rate list

HOW ASA WILL HELP YOU IN APPLYING FOR AUTO LOAN

Owning a car or SUV or motor cycle is a dream of almost every common man. Now, owning these vehicles is not something which is improbable.

ASA’s team of professionals will assist you in obtaining auto loan. Our experts will give you all the information about which bank or financial institution is offering the reasonable rate of interest and EMI’s which a common man can afford which much burden on his/her pocket.

Our experts will also take load of all the necessary paperwork required. While we work for you, you can search for the best and suitable vehicle for yourself.

Reach out to us for making your dream a reality, all you need is a few documents to make this happen.

 

MSME LOAN

MSME stands for micro, small and medium enterprises, now and then it is abbreviated to SME for small and medium enterprises. But, in pith, MSME AND SME loans are offered to start up proprietors, small commerce proprietors and ladies business visionaries on a short-term premise. The term of MSME/SME loan changes from lender to lender.

As MSME/SME loans are unsecured loans, there are a few least qualification necessities in order to diminish the hazard for loan specialist.

MSME credit plans are majorly utilized by trade proprietors and ventures to meet their working capital prerequisites, to upgrade cash stream for commerce development purposes, buying gear and apparatus and much more. Numerous moneylenders too offer MSME credit without collateral. The interest rate offered for MSME business loan may shift from loan lender to lender.

BASIS OF MSME/SME LOAN

Following are the few factors on which MSME/SME loan is based:

  • Desired loan amount
  • Repayment time period
  • Nature and time period of business
  • Profile of applicant
  • Money related history of the applicant
  • Financial soundness of the applicant
  • Repayment capability

PURPOSE OF MSME/SME LOAN

Following are the few reasons as to why MSME loan is required:

  • For Meeting working capital requirements
  • For business expansion
  • For buying raw material, vehicles, tools etc
  • To control the cash flow in business
  • To install new plant or machinery
  • To store inventory
  • To pay off rent, salaries, hire staff or others

FEATURES OF MSME/SME LOAN

  • Interest rate: The interest rate of MSME/SME loan starts from 13%.
  • Amount of loan: The amount of loan should range between Rs. 10,000 to 1crore.
  • Repayment time period: The time period for repayment ranges from 12 months to 5 years which also be extended in some special cases.
  • Collateral: In case of MSME loans, collateral is not required. It is only required in term loan.
  • Credit facilities: It also offers credit facilities like bill discounting, overdraft, cash credit, bill of purchase etc.
  • Flexibility: The repayment options are quite flexible in this case.
  • Less time consuming: It takes minimum loan processing time which makes it a less time consuming process.
  • It also offers easy and real quick documentation.

ELEIGIBILITY CRITERIA FOR MSME LOAN

Following is the common criteria considered by most of the banks or NBFC before lending MSME loan:

  • Age 18-66 years
  • Company type: can be private or public company/ sole proprietorship/ partnership firm/ LLP
  • Business turnover: depends on the lender
  • Business time: should be MIN.2 years and in profit
  • Should be Indian citizen with zero criminal record
  • Excellent credit score and repayment capabilities
  • Necessary documents shall be certified by CA
  • Must have filed 2 years of ITR and last year’s GST return.

DOCUMENTS REQUIRED FOR MSME LOAN

Following is the common documents required:

  • The business plan
  • Filled Application form to apply for MSME loan
  • Passport sized photograph
  • Id proof ( PAN card, passport, voter id etc)
  • Address proof ( water bill, telephone bill etc)
  • Age proof
  • Applicant’s income proof
  • Proof of business existence
  • Rent deed, sales deed, MOA & AOA
  • Copy of licenses or COR ( if required)
  • Bank statements for past 12 months
  • P&L statement and balance sheet for past 2 years
  • Sales tax documents
  • Municipal tax documents
  • Business registration proof
  • PAN card copy of proprietor/company
  • Partnership deed copy

HOW ASA WILL HELP IN GETTING MSME LOAN

Grow your business with the help of MSME/SME funding and make it more efficient and effective.

ASA will help you avail MSME/SME loan at the best interest rate from the best banks, NBFC or financial institution. Our expert professionals are well aware of the pertaining rules and regulations and necessary documents required for availing MSME/SME loan.

Our representatives will assist you in the best way possible so that you can avail MSME loan and your business prospers. We’ll help you in availing the loan while focus on the main thing that is expanding and make your business more efficient than ever.

 

PERSONAL LOAN

A personal loan is a short to medium term unsecured loan taken by people from a Bank or NBFC to meet their personal needs. It is given on the premise of key factors such as:

  • Income level of the borrower
  • Credit and business history
  • Reimbursement capacity etc.

Unlike, domestic or auto loan, a personal loan is not secured against any resource since, it is unsecured loan the borrower does not have to put up any collateral like gold or property to avail it, the bank in case of default, cannot sell off anything that borrower claims.

The interest rates on personal loans are higher than those on domestic, auto or gold loan because of the more noteworthy risk when sanctioning them.

Also, like every other loan, default in paying off the personal loan is not great because it would reflect in the credit report and can cause issues in future when applying for credit card or any other credit.

BENEFITS OF PERSONAL LOAN

Following are the benefits of availing personal loan:

  • No restriction on utilization: The primary and foremost vital benefit of personal loan is that unlike, home loan, it can be utilized for any purpose. In case of any prerequisites, personal loan can be one of the easiest ways to urge cash.
  • Quick disbursal: In the event where the borrower meets the eligibility criteria and have a great credit score, he/she will be able to get the personal loan in 72 hours time.
  • No collateral required: In order to avail personal loan, no collateral is required. Since, it is an unsecured loan it is simpler to avail it than other credits.
  • Time period flexibility: The time period of the loan goes up to 7 years hence, the borrower got the flexibility to select the time period according his/her suitability. Longer the time period, lower will be the EMI’s and vice versa.
  • Fixed interest rate: Personal loan is by and large accessible on a fixed interest rate. So the compared monthly installments will stay fixed for the complete loan tenure.

PURPOSE OF PERSONAL LOAN

Following are the few most common reason as to how a personal loan helps:

  • Debt consolidation
  • For medical extremity
  • To improve creditworthiness
  • To Sponsor vacation
  • For enlargement of business
  • For refurbishment
  • Higher education
  • For funding wedding
  • For paying off credit card bills
  • Funding a big-ticket purchase

ELIGIBILITY CRITERIA TO APPLY FOR PERSONAL LOAN

Personal loans can be given to individuals, salaried or self employed. However, the eligibility criteria differ from lender to lender. Following is the most common criteria:

  • Age : 21-60 years
  • Monthly income : Rs.15,000 or above
  • Experience : at least 2 years
  • Year of Current residence : should be at least 1 year

DOCUMENTS REQUIRED TO APPLY FOR PERSONAL LOAN

  • Identity proof: PAN card/passport/Aadhar Card etc.
  • Address proof: utility bill/passport/ration card
  • Passport size photograph
  • Job proof: current employment certificate
  • Income proof: salary slips of past 2 months
  • Existing loan (if any) : payment track record
  • Proof of business existence (if any)
  • Bank statement: passbook for past one year

HOW ASA WILL HELP YOU AVAIL PERSONAL LOAN

Availing personal loan is not as difficult as it may sound. There are no confinements on the utilization of the personal loan, which makes it simpler to get.

ASA’s team of experience professionals will help you avail personal at best rates. Our experts will compare the offers of various banks for you before settling on any.

Our experts will assist you about the interest rates, time period of the loan, processing fees and other necessary information which will be required at the time.

Our experts will also help in acquiring necessary documents required. Now that vacation you dreamt off or planning your fairytale wedding is all possible with just a few documents and right assistance.

 

GOLD LOAN

Gold loan, also often referred to as loan against gold is a secured loan taken by the borrower from the lender by swearing their gold articles inside a range of 18-24 carats as collateral. The amount of loan that is provided could be a certain rate of the gold, ordinarily up to 80%, based present market value and quality of gold.

Gold is only precious metal which other than being used for industrial, commercial and investment purposes can also be used to avail loan at the time of financial crises. Gold is one of the easiest and fastest ways to gain funds when it matters the most.

Even if your creditworthiness is not great but you sufficient amount of idle gold in your locker then the gold loan can be the monetary solution for you. The loan amount which is sanctioned is a certain percentage of the gold’s value which has to be paid in easy monthly installments. Unlike other credits, there is no restriction on the utilization of the gold loan.

PROCESSING OF GOLD LOAN

The whole process of gold loan is very comparable to other secured loans. In this, the borrower takes the gold articles to the bank/lender with the specified set of documents. The loan specialist/lender assesses the gold articles and verifies the submitted documents. As per the evaluation, the lender/bank sanctions the loan amount. As per the loan agreement, the borrower pays off the foremost sum in conjunction with the interest rate and gets the promised gold articles back.

ADVANTAGES OF TAKING GOLD LOAN  

Following are the few benefits of obtaining gold loan:

  • Gold loans are secured against gold coins or adornments as compared to an unsecured personal loan. Gold loans taken from NBFC have hassle free documentation and no handling fee. Gold loan can be obtained in no time if the borrower satisfies all the vital criteria.
  • The rate of interest in gold loan is comparably lower than in case of personal loan. The interest rate charged on a gold loan from a bank/Nbfc can be around 10-16% per annum. This saves huge interest payments.
  • Gold loans taken from NBFC have no prepayment charges and processing fees unlike, processing fee charged on personal loan which is 2-2.5%.
  • Customized products are being launched by NBFC such as loan products where the interest varies based on the time period of the gold loan.

ELIGIBILITY CRITERIA TO AVAIL GOLD LOAN

Following is the eligibility criteria for availing the gold loan in India:

  • Anyone who has gold can avail gold loan
  • Age : 21-65 years
  • Purity of gold provided should not be less than 18-24 carat.
  • Only Indian resident can apply
  • Good credit is not required

DOCUMENTS REQUIRED TO AVAIL GOLD LOAN

Following the basic documents required for availing gold loan:

  • Id proof: Aadhar card/Pan Card /voter ID etc
  • Address proof: utility bills/ration card/passport
  • Passport size photograph
  • Signature proof
  • Fulfill KYC norms

HOW ASA WILL HELP YOU AVAIL GOLD LOAN

There might be a time of financial crises in everybody’s life where desperate need calls for desperate measures. In that case availing gold loan is the best route for raising cash particularly for medical or other emergencies.

Obtaining gold is the easiest way to get credit. It requires minimal documentation and is hassle free process.

ASA will assist you by giving you all the information about private or nationalized banks or NBFCs who offer gold loans at affordable Interest rates.

Our experts have been a part of this industry for quite a long time and they very well know all about the process. They keep a close eye on the gold rates every day. We assure to provide the best service we can and help you in the best possible way.

 

EDUCATION LOAN 

An education loan is a sum of money borrowed to fund post-secondary education or higher education-related costs. Education loan are intended to cover the cost of educational cost, books and supplies and living costs whereas, the borrower is in the process of seeking degree. Payments are frequently conceded while a student is still in college and depends on the lender, in some cases they are conceded for an extra six month period after gaining the degree. This period is sometimes alluded to as a grace period.

Education loans are generally of two types:

  • Federal loan sponsored by federal government: these are generally offered at lower interest rate and a few moreover offer subsidized interest.
  • Private-sector loans: they generally take part as more of conventional process for application, with rates that are typically higher than federal government loan. 

The Indian government has launched a portal, Vidya Lakshmi, for students seeking educational loans and five banks including SBI, IDBI and Bank of India have integrated their system with the portal. Vidya Lakshmi was launched on the occasion of Independence Day in 2015 for the benefit of students seeking educational loans.

To bridge the constraint of increasing intuitional fees, NSDL e-governance in India launched Vidyasaarathi portal to help students seeking scholarship for students in India or abroad.

MAXIMUM LIMIT ON AN EDUCATION LOAN

Many lenders have the maximum limit of Rs.10-15lakhs for studies within India, while the maximum limit on education loans abroad studies can range between Rs.20-30lakhs. In case of some moneylenders, the person can get the higher loan/credit amount sanctioned provided bank-accepted collateral is delivered.

TENURE OF EDUCATION LOAN

The average time period for education loan is 5-7 years in most cases of lenders.

TYPE OF COURSES COVERED

It can be taken for a full-time, part-time or professional course and graduation or post graduation within the areas of designing, administration, therapeutic, inn administration, engineering, etc.

BENEFIT UNDER INCOME TAX ACT

Section 80E of the I-T Act permits for deduction on the interest paid on the reimbursement. This deduction is permitted as it were for the people paying interest on the loan for himself, companion or children or for the student to whom you are a legal guardian. You can deduct the complete interest amount paid from your assessable salary. This deduction is permitted for a most of 8 years. The principal sum does not qualify for any charge derivation.

ELIGIBILITY CRITERIA FOR EDUCATION LOAN

Following are the few common parameters to that most of lenders consider:

  • The applicant should be an Indian resident only
  • The applicant should have a confirmed admission at time of loan is availed.
  • The applicant should be in between 16-35 years of age.
  • The applicant should have a co-borrower most likely a parent who acts as guarantor for the loan.
  • Collateral in the form of fixed deposit etc. is required for the loan amounts higher than Rs.4lakhs.

DOCUMENTS REQUIRED FOR EDUCATION LOAN

  • Age proof
  • Address proof
  • 2 passport size photograph
  • Admission confirmation letter
  • Schedule of expense for the course such as, tuition fee and others
  • Bank a/c statements of last six months
  • Schedule AL (assets and liabilities) of borrower

HOW ASA WILL HELP YOU AVAIL EDUCATION LOAN

Education loan is probably the very first loan that someone takes in their life. It helps them not only in funding the expenses for their course but also helps them to build a great creditworthiness. The repayment of education loan on time without much default makes it easier for the person to get other loans in future easily.

ASA will help you build your career by assisting you in get the education loan at the best interest rate and without much hassle.

Our team of dedicated and expert professionals will gather all the information for you about the interest rates, bank charges related to processing fee, prepayment fee, payment of EMI’s and others.

We will provide you the best service possible and help you get education loan so that your dream of studying in your dream college becomes reality.

 

 

WORKING CAPITAL LOAN

A working capital credit is a loan that’s taken to back a company’s everyday operations. These credits are not utilized to purchase long-term resources or speculations and are, instep, utilized to supply the working capital that covers a company’s short-term operational needs. Those needs can incorporate costs such as finance, lease, and obligation installments. In this way, working capital credits are essentially corporate obligation borrowings that are utilized by a company to fund its every day operations.

In some cases a company does not have satisfactory cash on hand or resource liquidity to cover day-to-day operational costs and, in this way, will secure a loan for this reason. Companies with high seasonality or recurrent deals may depend on working capital loans to assist with periods of decreased trade action.

Working capital loans are frequently tied to a business owner’s individual credit, so missed installments or defaults may harm their credit score.

REASON FOR GETTING A WORKING CAPITAL LOAN

There could be many reasons as to why a working capital loan is required depending on the nature of business. Following are the most common reasons:

  • Seasonal deals fluctuation: working capital loan may come in handy for seasonal businesses that have to pay trade cost where the sales are moderate. They might also utilize working capital loan to buy stock before holiday to get ready for expanded sales.
  • Inconsistent cash flow: if the business does not receive money on time from its customers then it becomes tough to pay bills on time and run business. Working capital loan give access to the cash that is the need of the hour.
  • New business chance: working capital loan can assist the businessman to buy modern hardware, contribute in preparing, or give you the assets you would like to extend your trade and take advantage of openings when they emerge.
  • Help start-ups: start-ups have difficulty in making end meets hence working capital loan help these new businesses to cover day to day expenses, pay off their employees, hire new staff and other. 

TYPES OF WORKING CAPITAL LOAN

  • Installment loans: These are issued to borrowers in lump-sum. Borrowers are at that point anticipated to pay back that sum, with interest, in standard fixed installments. Installment advances are an incredible choice for set up businesses searching for long-term credits to back working capital.
  • SBA loans: The Small Business Administration (SBA) is a government organization that helps businesses in part via a number of loan programs. The most popular is the 7(a) loan, which can be used for various business purposes, including working capital. The SBA guarantees a part of your loan, so if you don’t have the collateral necessary to get a low-cost loan on your own, a 7(a) loan is a very good option.
  • Line of credit: A working capital line of credit can be a great way to achieve more consistent cash flow. Since, the businessman get access to a certain amount, he can draw from this line of credit at any time. Credit lines are revolving means, as one pays off the debt, can again draw from the funds.
  • Short-term loans: These are issued in lump-sum to borrowers and are paid off in regular fixed installments. Short-term working capital loans are easier to qualify for than medium or long-term loan. 
  • Invoice financing: Invoice financing is a catch-all term for invoice factoring and loans in which invoices are used as collateral. Both options allow you to utilize due invoices to use instant funds for wc. 

ADVANTAGES OF WORKING CAPITAL LOAN

  • Short period loan: It is a short period loan. The repayment can be done in 9-12 months. Borrower does not have to plan for long-term EMI’s.
  • No collateral required: No security or collateral is required to obtain a working capital loan from bank or NBFC.
  • Helps in lean period: It helps during seasonal fluctuations. These loans can help in overcome the blows otherwise created by lack of adequate spending potential.
  • Handle monetary crises: In times of financial crises nothing can be better than a working capital loan. Applying and utilizing the working capital loan when required the most can keep you business when shortages occur.

ELIGIBILITY CRITERIA FOR WORKIN CAPITAL LOAN

In case you’re running a SME and are looking to apply for a working capital loan in India, you need to represent a trade that has been in movement for a number of a long time or your commerce ought to have a certain yearly turnover. In any case, these prerequisites depend on the sort of trade you own. Working Capital Credits are to a great extent advertised to MSMEs, Sole Proprietorship Firms, Organizations and Private and Open Restricted Companies.

DOCUMENTS REQUIRED FOR WORKING CAPITAL LOAN

  • PAN card
  • Passport size photograph
  • Identity proof
  • Address proof
  • Income proof
  • Last 3 yrs’ ITR and detailed Income statement
  • CMA (Credit Monitoring Arrangement) report, if business turnover exceeds ₹ 5crore
  • Last 2 years’ audit report financials
  • Partnership deed
  • Certificate of registration
  • Certificate of incorporation
  • List of current directors
  • MOA and AOA
  • Loan statement with sanction letters in the last one year (of other banks as well)

HOW ASA WILL HELP YOU IN AVAILING WORKING CAPITAL LOAN

Working capital loan is the best possible way for a businessman to raise immediate funds at times of financial crises.

ASA is here to help you out in the time of need. You can count on us for providing the most authentic information about the interest rates and other necessary things related to loan.

Our experts who are experienced and well aware of all the terms and conditions will make sure that you understand all of the loan’s rates and fees. Our experts will ensure that you know everything you can about the loan’s interest rate, additional fee and more before you avail the loan.

Reach out to us and we’ll help you get the best deal.