Blog

January 18, 2023

How to get an instant business loan?

January 18, 2023

By Team Kinara

3 mins read

MSME Loan

Instant Business Loans or Quick Business Loan is a credit facility that provides Micro, Small, and Medium Enterprises (MSMEs) with fast and easy access to capital. MSMEs often encounter the need for extra funding to address their myriad needs, and in such scenarios, business owners often tend to approach family or friends and secure funds informally. Others go to banks but traditional business loans usually take a lot of time and paperwork, making it difficult for MSMEs to get the funding they need on time. This is where Instant Business Loan comes in, often offered by Non-Banking Financial Companies (NBFCs) to address MSME financial requirements.

MSME owners can avail Instant Business Loans online without visiting any bank branch and spending a lot of time on this process. This loan facility is designed to help MSMEs meet their financial emergencies and bridge the gap between their current financial situation and future growth. MSMEs can use the amount to invest in purchasing raw materials, buying new machinery, hiring skilled employees, maintaining inventory, enhancing working capital and so on.

Using Instant Business Loan funds, MSMEs can speed up the growth of their business and take it to newer heights. While MSMEs need access to easy and fast loans, it is equally crucial for them to avail the loan from the correct lender.

Now, how can business owners identify the correct lender? The first step is verifying the lending company is legal and compliant. You must ensure the lender is registered with the Reserve Bank of India (RBI). Then, the second step is to research if there are lenders offering instant business loans and the type of loans they provide. Some of the other crucial parameters to look for before identifying the lenders are eligibility criteria, terms and conditions, and interest rates. Instant Business Loans are available from reliable fintech NBFCs like Kinara Capital with minimal documentation.

Let’s take a closer look at how Kinara’s Instant Business Loans can help MSMEs in times of emergency.

How does Kinara’s Instant Business Loan help meet Sudden Business Demands?

Capital is inevitable for every business. Without adequate funding, it's nearly impossible for any business to scale up. In addition, MSMEs may at times require funds to meet certain unforeseen needs on an urgent basis, including channelling finances to operational changes, planning for the cost of staff and new hires, evaluating the cost of new equipment or machinery purchases to suit demand, etc.

Kinara Capital provides Instant Business Loans to MSMEs, which are needed to meet requirements that would be otherwise unachieved with the limited business budget that businesses often have. It helps MSMEs to expand quickly and continue their operations successfully.

What sets Kinara Capital apart is that MSMEs can easily get unsecured business loans online within 24-hours from Kinara’s official website or by downloading myKinara App. With Kinara’s user-friendly options, the borrowers do not need to provide multiple documents that are otherwise required to get the loans approved. The entire loan approval and amount disbursal procedure are swift, secure, and simple.

Feature and Benefits

Here are some benefits of opting for Kinara’s Instant Business Loan, which is available in the range of Rs. 1 lakh to Rs. 30 lakhs for MSMEs.

Collateral-free Business Loans - Kinara Capital provides Unsecured Instant Business Loans to help MSMEs accelerate their business growth. All registered MSMEs from the trading, manufacturing, and services sectors can easily apply for an Instant Business Loan from Kinara without mortgaging any property collateral.
Minimal documentation - Kinara provides Instant Business Loans to MSMEs with minimal documentation. Businesses can get Instant Business Loan approval online within no time. It helps small businesses to focus on their core and fulfil their business goals rather than going through time-consuming documentation procedures.
Loan in 24-hours - Online submission of the documents helps in processing the Instant Business Loan fast. MSMEs get same-day approvals with disbursals within 24-hours once the documents are submitted and verified.

Why Should MSMEs Choose myKinara Business Loan?

Kinara Capital is one of India's trusted last-mile lending firms that offer collateral-free business loans to MSMEs. By availing Instant Business Loan from Kinara, MSME owners can:

Increase business cash flow
Rent bigger space
Renovate working space
Buy, upgrade, or repair machinery and equipment
Adopt the latest technology
Maintain stocks
Hire skilled employees
Purchase raw materials or stock
Expand business to new geographies
Grab bigger orders to scale

Grow your MSME with collateral-free business loans

Apply Now

Types of Business Loan Kinara Capital offers:

Working Capital Loans:

Working Capital Loans are taken to infuse funds to fulfil various business growth needs such as, purchasing raw materials, adding inventory/stock, conducting machine repairs, hiring additional employees, renting storage, renovating business premises, designing new signages, upgrading point of sale systems, and more. Kinara’s working capital loans are business loans between Rs.1 lakhs to Rs.30 lakhs, wherein the repayment tenure can range from 12 to 60 months, and interest rates are between 21% to 30% per annum on a reducing rate basis.

Existing customers of Kinara are eligible for flexible short-term working capital loans to meet their immediate capital needs. These loans have smaller ticket sizes starting from Rs. 50,000 to Rs. 2 Lakhs. The loan amount can be in increments of Rs. 50,000, Rs. 75,000, Rs. 1 lakh, Rs. 1.25 lakh, Rs. 1.50 lakh, and Rs. 2 lakh. Short-term loans are granted for a duration of 6-12 months to finance working capital and limited capital requirements. For example, for existing customers who borrow Rs. 50,000, the loan tenure will be 6 months. The tenure for customers borrowing Rs. 75,000 will be 9 months and 12 months if it is Rs. 1 lakh or above.

Equipment Finance or Machinery Loans:

Equipment finance or machinery loan is a funding option to purchase new or second-hand equipment or machinery. Businesses that borrow money for machinery or equipment may also gain tax benefits.

Loans for Women Entrepreneurs

HerVikas Loan from Kinara Capital is a special business loan for women entrepreneurs that offers an automatic discount without requiring a separate application process. Women MSME business owners engaged in the manufacturing, trading and service sector can avail a discount of 1% upfront under the HerVikas program and take their businesses to the next level with no additional documentation.

Access to business credit empowers women entrepreneurs to grow and will positively impact their families and communities. This is because women are more likely to spend higher portions of their income on nutrition and the education of their family and hire more women within the local community.

Eligibility Criteria

More than 300 sub-sectors in the Manufacturing, Trading, and Services sectors are eligible to apply for an Instant Business Loan from Kinara Capital. The requirements to apply for Kinara's Instant Business Loans, are:

The enterprise should be registered as an MSME from the trading, manufacturing, or services sectors.
MSMEs must be from one of the serviceable pin codes in one of these locations: Karnataka, Gujarat, Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu or UT Puducherry.
The total monthly turnover of the business should be greater than Rs. 50,000 and less than Rs. 2 crores.

Documents Required for a Business Loan

With the use of AI/ML, Kinara Capital has built data-driven credit decisioning to provide fast service to small business entrepreneurs. Kinara has a simple and minimal documentation process and offers the option to substitute certain documents for others based on availability. Following are the documents MSMEs need to submit to apply for business loans.

1. Proof Of Business Registration

MSMEs have to provide proof of the company’s existence. This may be presented as water or electricity bills, Udyam Registration, Company registration, the PAN card of the business, etc.

2. Proof Of Individual Identity

MSME business owners need to provide their proof of identity as well. This can be fulfilled by Aadhaar card, PAN card (personal), Driver’s License, Passport, etc. While Kinara recommends PAN or Aadhaar for the owner, the co-applicant can provide Voter ID, Driver’s License, or Passport instead.

3. Financial Documents

Finance-related documents such as bank statements, profit and loss accounts, balance sheets, passbooks, account statements etc would need to be submitted. If MSMEs have GST, then they have to submit the GST filings as well.

Conclusion

Instant Business Loans are a great way for MSMEs to improve cash flow, expand operations, purchase new equipment, and even cover unexpected expenses. The best part is that the entire process is automated and can be completed online. This eliminates the need for lengthy paperwork and tedious approvals.

The application process for an instant business loan can be simple and straightforward. MSMEs must provide basic information about their business, such as the business name, address, and a few financial details. Based on this information, the lender will assess the borrower’s eligibility and sanction the loan amount. Once the borrower accepts the offer, the loan amount will be transferred directly to the mentioned bank account within a particular time frame. The loan usually has a fixed interest rate and a repayment period.

Kinara Capital assists MSME entrepreneurs to take their businesses to a greater level by providing collateral-free business loans up to Rs. 30 lakhs! Registered MSME entrepreneurs can evaluate their eligibility for a business loan in just 1-minute by starting the digital-first application process on the website of Kinara Capital or by downloading myKinara App. Once the loan is approved and the formalities completed, the loan amount will be disbursed instantly to their mentioned bank account within 24-hours.

If you are interested in learning more or need assistance to apply for a loan, you can give a missed call at 080-68264454 and talk to our in-house customer support team.

FAQs:

1. How can I get an Instant Business Loan online from Kinara Capital?

To avail an Instant Business Loan online, registered MSMEs must take the 1-minute eligibility check on the Kinara Capital website or download the myKinara App. MSMEs qualified for the business loan can continue with the loan application and submit all the required documents. Once the documents are uploaded, and verification is completed, the loan amount will get disbursed to your mentioned bank account within 24-hours.

2. What are the documents required for availing Instant Business Loans?

Kinara requires businesses to complete the KYC process for Instant Business Loans. Some necessary documents are Aadhaar Card, Udyam Registration Number, Business Registration Proof, and Bank Statements (12 months).

3. Why choose myKinara App ?

myKinara Instant Business Loan process is easily accessible with additional support provided by phone, chat, or doorstep customer service. Further, it is important to know that Kinara Capital is an RBI Registered Non-Banking Financial Company (NBFC), ensuring a fair process for its applicants in compliance with RBI regulations. Our customers choose Kinara Capital for three main reasons.

First, we can provide loans instantly with a fully digital process within 24-hours
Second, we do not require any property collateral
Third, we provide doorstep customer service in the vernacular language