Chennai is one of the fastest growing cities in India. Thousands of people relocate to Chennai every day because of its increasing demand of workforce in several sectors of jobs. Private finance companies understand the importance of loan for your business and help you get it in a faster and easier way. The more the investment, the more the capital required, eventually leading to more loans and sanctions by banks. Not every business is approved for the total amount of loan required for investing, as it could be blocking the huge assets of the banks and costing the applicant a high rate of interest which the applicant might find difficult to payback. Private finance not only used for funding public works so that the government doesn’t have to release funds for it, but is also widely used by the private sector businesses.
In the case of private finance, in Chennai you will find several individual money lenders ready to lend you the capital you need, to start or run your already existing business. The city is growing tremendously in the world of finance, private finance on cheque and money market. The private finance lenders work on a P2P platform, they look at you financial situation and gauge if you will be able to pay them back or not. Banks have several paper works and rules to fulfill. Many times, your loan request could be declined by finance companies, but private finance can also help you with the finance if you fulfill some basic criteria to get a loan granted. The private finance company procedures are almost the same as banks, however, there will at least approx. 50% more chance to get your loan sanctioned with private finance money lenders in Chennai.
There is a pre-closure charge of approximately 4 to 5% that the banks and private finance companies in Chennai charge you. You will notice that you will not be demanded of any sort of fees for starting the application process. Specially in cases of immediate requirement of finance, private finance companies will give you first priority as your requirement is immediate. This is something you will not notice happening at banks. Talking about the procedure you will be asked to prove certain identity and financial information. You will be required to present a proof of address, liabilities, position of work, work experience, income, tax returns, your savings, statements, your assets, and your financial situation.
Talking about private finance on cheque basis, it extremely popular and much quicker in Chennai. There is no fees that you need to pay in the beginning to these private finance lenders. There is a lot of competition as hundreds of private finance companies have started their business in Chennai. Your credit history will matter a lot for the private finance companies to decide on the amount of loan you could be loaned by a bank or NBFC. The rate of interest is usually decided on the credit scores and history of your employment. In Chennai, banks and private finance lenders will also introduce to something known as a pre-closure charge that banks, which could be around 4 – 5%. This is negotiable according to the amount of your loan with the private companies.
The procedure of private finance on cheque basis would begin with a thorough check on you. You will have to show proof of address, income, liabilities (if any), job situation, work experience, if the organization or firm you work for is reputed or not, and whether you can submit a collateral. In Chennai, you might even find private finance lenders asking you for your balance sheets, passbooks and bank statements. The reason why they offer you a loan is so that it is returned back to them in a short period of time with interest.
You will have to agree to the interest and sign proper notarized documents and issue PDCs directly to the private finance lenders. One of the best factors in working with private finance lenders is the quickness of the loan getting approved and provided to you. In case you need help with finding the right merchant, there are several middleman you can consult to get in touch with them. You will get complete assistance from these companies from beginning to the time you get the loan.
At TN Finance, we are committed to help your growing businesses with small Business Loans in India.