All about Long Term Business Loans

1. All about Long Term Business Loans Term loans, a loan for all purpose. A borrower can apply for term loans for both personal purpose as well as business purpose. A borrower can avail for term loan as per their requirement and financial status. Many types of term loans are available in the market such as long term loans, Midterm loan and Short term loan. An applicant can apply for them as per their eligibility and needs. There are basically two types of term loans: 1.Secured term loans 2.Unsecured term loans Secured term loans: In this type of term loans, the collaterals can be your land, your business premises, property and machinery. Secured term loans comes with low interest rates as compared to the unsecured term loans. Unsecured term loans: In unsecured term loans there is no need of any collateral against your term loan but the interest rates of these loans are quite costly as compared to the secured loans because they are unsecured. In term of Business growth, term loans are best for expanding business or business start up. An applicant can avail Long term business loan with flexible interest rates for better business establishment. Long Term Business Loan

2. With business startup or business expansion, a long term loan can help you in setting up your office, to buy commercial carriers or in upgrading business equipments. The special highlight of long term Business loan is that the borrower can pre-pay the loan to pay-off of their loan. In long term Business loans, a borrower can apply for a higher loan amount to resolve their biggest commercial issues. The maximum tenure of long term Business loans is 10 years to 15 years in general. Interest rates of term loans can be vary depending upon the tenure of the loan. With the legal collaterals, the regular source of income is also required to apply for long term Business loan. Long term business loans are comes with lots of features. They are as follows: Low interest rates Higher loan amount Pre-payment of loan amount

3. Tax benefits Easy EMIs Collaterals submission Low Interest rates: Since the tenure of long term business loans is quite higher therefore bank and NBFCs offers Low interest rates for such loans. Higher loan amount: In long term business loan, an applicant can apply for higher loan amount. Since this kind of loans are covered with the collaterals hence the Bank or other lending entities are not tensed to allow higher loan amount to long term business loan applicant. Pre-payment of loan amount: This is the most important feature of long term Business loan. It allows an applicant to pre-pay the whole loan amount before the loan tenure to pay-off the loan faster. Tax Benefits: An applicant of long term business loan can avail the tax benefits. All benefits are the subject to the Income tax acts. Easy EMIs: Bank and NBFCs allows an applicant to pay the loan in Installments. They offer flexible EMI option to pay-off the loan in easy way. The EMIs of long term Business loans are generally made up of two components that are principle and interest.

4. Collaterals submission: In long term business loan the lender offers higher amount for your business hence they asks for some legal collaterals against the loan amount. This helps lenders to recover the loan amount in case of business loan defaults. Eligibility criteria for long term Business loans It is necessary to fulfill the eligibility Criteria to apply for long term Business loan. The criteria for long term loans are as follows: Regular source of income Applicant’s Age must be between 18-35 year Applicant must be an Indian citizen A guarantor is required to sign the loan application Long term loan is a broad category of loans and there are numerous sub-categories of loans under it.Type of loan that is paid off over an extended period of time greater than 3 years is termed as a long-term loan. An applicant can apply for long term business loan with the maximum tenure of 15 years. Best financial consultancies like Banknomics can help you to avail the right long term business loan for you. So go online and compare among various banks then apply for best Long term business loan with Banknomics India.