Business Loans For A Beginner
The practice of borrowing loans (in the said case, business loans) or renting properties on lease for a certain period of time has been one of eons. It could be traced back to even the caveman era where factions would loan out resources in good faith, then during the establishment of relatively organized communities via village groups/gatherings (called the panchayat in India). Loaning is also an everyday activity, may it be borrowing some money to buy certain fruits and vegetables, dairy products, various types of gifts, products that are utilized in certain festivities.For example- Purchasing various colors for Holi, firecrackers and lamps for Diwali and so on.
Loans throughthe Ages:
Before the arrival of the now speedily progressing digital age, when it was the age of handwritten documents, even before the time when fax, printers and various machineries were introduced, there used to be written contracts, signed by various officials, requiring approval from specific people, stating the purpose of borrowing the loan, assigned time period during which the money was to be returned and if not returned, the person borrowing the loan would subsequently be facing the respective consequences. The consequences used to be relatively harsh in the imperial era with- instant removal of land ownership, public humiliation to name a few.
In the current era, with almost everything digitized, it was only a matter of time where people would be able to easily take out a loan without having to run around from place to place. There are a variety of mobile applications available on Playstore, a lot of them offer business loans and assure their borrowers that sufficient time will be provided. These business loan applications grant the users the comfort of borrowing light loans starting from Rs. 2,000 with a fairly charitable returning period and added interest. Compared to before where people would only take loans for big investments or for clearing mortgages and the lengthy process of loan application and approval. With recent digitization of this service, users just have to submit virtual copies of their required documents which are easier to store, hence making the entire process less burdensome.
There are certain advantages and disadvantages in taking business loans in the modern world, advantages- Banks don’t try to dictate how the money is spent, they are convenient and easy to access, reasonable rates of interest, and the entire profit is for the borrower. Disadvantages- all the requested money may not be granted, they are secured against assets, and not all businesses will qualify for a loan