Almost everyone needs to borrow money at some point. Maybe it's for a new home. Maybe it's for college tuition. Maybe it's to start a business. Maybe as working capital. Maybe to buy consumer durable or maybe just go for a vacation....

​

Loan types vary because each loan has a specific intended use. They can vary by length of time, by how interest rates are calculated, by when payments are due and by a number of other variables.

​

Starting a small business will certainly require credit to manage all the operational costs. Though there are plenty of avenues to get a loan for business growth, a business loan from the Government will come at better terms and flexible repayment options. The Government is currently routing the business loans through public and private banks.

​

Funding acts as fuel for the business which helps them to be alive and functional. Business loans are those financial tools that are intended to fulfil the funding needs of a business. From meeting working capital requirements to inventory purchase and from paying the staff to paying rent for the workspace or factory space a business loan has the potential to help you with all these. Hence, it will not be wrong if we say that a business loan plays a vital role in business-specific growth.

​

Whenever you decide to borrow money – whether it is to pay the bills or buy a luxury item – make sure you understand the agreement fully. Know what type of loan you’re receiving and whether it is tied to any of your belongings.

​

Also, familiarize yourself with your repayment terms: what your monthly obligation will be, how long you have to repay the loan and the consequences of missing a payment. If any part of the agreement is unclear to you, don’t hesitate to ask for clarifications or adjustments.