The early years of the decade 1990 occupies a special place in the history of Indian economy. It is because at that time Dr. Manmohan Singh, India’s then finance minister was the one person who was solely responsible for changing the renovating the entire economy which is why today loans in business are playing a very vital role in the shaping of the economy.
Today, almost every kind of loans is available in the market. But till few years back loans in India was an abhorred term. It is because most of the people in India had the perception that availing any kind of loans is the symbol of a person depleting financial condition. But as the economy changed so did the perception in the mind of people changed. This ultimately resulted in the blossoming of the loan market in India.
The 1990 incident also opened the doors for many foreign investors to come and invest into this potentially rich economy. Finally, all this led our country to the overall development of economy. In which there was the emergence of numerous entrepreneurs, sole proprietors and the corporate houses. But this was not enough as at that time the loan market was only starting to develop. Hence, there is an acute need of loans for business.
These loans for business are nowadays available at quite reasonable rate of interest. Such loans are available in the bracket of Rs. 25000 to Rs. 10 lacs. People interested in availing these loans avail them for the purpose of financing the business, investing or for the expansion of business. These types of loans are available in both the secured as well as the unsecured version. While in the secured loans, the loan aspirants need not to put any of his/her asset as security with the money lender or with the money lending authorities. Since, there is involvement of asset hence; the rate of interest in these types of loans is on the lower side. On the other hand the unsecured loans for business do not require any asset of the loan applicant to be pledged as security with the lending authorities. But the only thing that can put a borrower in a spot of bother is the rate of interest that is charged by the lenders on these types of loans.
Normal perception about these loans for business is that they are very difficult to avail and at the same time are also very difficult to repay back too. But now as the policies of government have liberalised to large extent therefore now people don’t hesitate or think twice before availing loans for business.
Another famous type of loans that has emerged in the recent times is the NRI loans. These types of loans are exclusively meant for the Non Resident Indians. These loans allow the Indians living abroad to come to their native place and purchase a residential property for themselves. The rate of interest on these loans is very affordable and also the mode of repayment is very flexible. The most important condition to avail these loans is the concerned person should be a graduate. The borrower should have a regular source of income i.e. either he should be a salaried professional or a business man. If the person is a business man then it is necessary for him to display the past record of his business i.e. balance sheet and other important documents. This will help his cause of availing the loan.