How do Business Loan Works in Ahmedabad

Business Loan Guidelines and types of Business Loan 

To know how business loan works you should be aware about the types of business loan in Ahmedabda you can apply for :


1. Term Loans – With tenure of 2-10 years, a term loan is a type of loan provided for acquisition
of long term fixed assets like machinery, building and land. Term loans have a fixed
repayment schedule but its interest rate is either fixed or floating.
Assets financed by term loan:
Land and building, building construction, infrastructure creation, renovation, purchase of
equipment, machinery, vehicles.

2. Loan Against Property – The funds raised by the business by giving residential, office or
vacant land as collateral security to the bank for any purpose including advertising, research,
business expansion, staff salary and many more. The normal tenure for the repayment of mortgage loan in Ahmedabad is 3-15 years based on the borrower profile.

3. Gold Loans - Easiest way to lend money against gold jewellery or coin or ornaments for any
purpose with the repayment time period of 12-30 months. According to a policy you cannot
lend gold loan more than 20 lakhs per person

4. Loans against shares or financial Securities- The funds raised by pledging shares or financial
securities is term as loans against shares or financial securities which requires renewal
every12 months
Assets used for raising loan against shares and financial securities:
Bank approved demat shares, mutual fund units, fixed maturity plans exchange traded funds,
insurance policies and savings bonds

5. Cash credit Facility - Cash credit facility are loans granted in the form of overdrafts on the
security of stock in trade /process /raw materials. Cash credit facilities are usually secured by
pledging current assets of the organization like inventory or receivables. Cash credit limits
are based on drawing power which is arrived at after deduction of margin fixed by the bank
over the stocks. It is ensured that the balance outstanding does not exceed the drawing
power. Cash credit facility is ideal for financing working capital – inventory and receivables. It
requires renewal every 12 months.

6. Letter of credit- A letter of credit is a type of credit facility used in international and domestic
trade transactions wherein the bank guarantees that the payment will be received where the
buyer and seller may not know each other and are operating in different countries. In the
event that the buyer is unable to make payment on the purchase, the bank will cover the
outstanding amount and the tenure has to be renewed every 12 month.

The following applicants are eligible for the business loan

• Allopathic doctors, chartered accountants, company secretaries, architects, etc
• Traders and manufacturers

Following entities can avail business loan

• Partnerships
• Limited Liability Partnerships
• Private Limited Companies
• Closely Held Limited Companies

Inox Capital is based in Ahmedabad, Gujarat is financial experts provide loan services across gujarat and advise only after complete research of the market, and due to our knowledge and experience, we have gained the trust of our customers. Our utmost professional expertise helps you to manage your personal business or corporate finances. Let your dreams of business be known to us. visit www.inoxcapitals.com or call  +91 7226007800