Ziploan Business Loan

Small business owners must choose Ziploan to solve their fundamental issue of capital availability. The advantages a business owner can enjoy by approaching Ziploan include-

• It is a technology-enabled lending platform that makes fast funds available in real-time.
• The lending is marked by qa uick and hassle-free process.
• It involves simple documentation.
• The business loan is available at a competitive rate of interest.
• There are no hidden charges.
• They do not require a Balance Sheet of the company/ firm to assess the eligibility.
• The whole process of availing a Business Loan is online, and the customer need not visit in person to get approval for the loan.

• Purpose of loan: Ziploan Business Loan can be availed to meet working capital requirements of the business, inventory build-up, funds for day-to-day operations, for paying essential bills, and salaries. A business can also get funding for upgrading machinery, purchasing new machinery, and replacing old and obsolete machinery etc. You get funding for all that, which helps you to take the business to the next level.
• Quantum of loan: Small Business Loans for 1 Lakh to 5 Lakh basis the eligibility and requirement of an individual business.
• Repayment: Flexible repayment period from 12 months to 24 months.
• Collateral Security: Unsecured loan; No collateral security required.
• Interest: Interest rate ranges from 23 % to 29% (on reducing balance) per annum, depending on the Credit Score of the business and the business owner.
• Zip Score: Ziploan does not rely on the CIBIL Score to assess the creditworthiness of the borrower. But they have their holistic Credit Rating Process called Zipscore. Thus, if you can prove your creditworthiness, you can successfully borrow a Business Loan despite a low credit rating from CIBIL or Experian.
• Processing Fee: The Processing fee is 3% of the loan amount.
• Pre-Closure Charges: No Pre-Closure and Part-Payment charges are collected.

Ziploan uses the following parameters to assess the loan eligibility-

• Self-employed professionals and non-professionals, proprietorship and partnership firms and limited companies can apply for the Ziploan Business Loan.
• There should be a minimum turnover of 10 Lakh.
• Previous year's ITR must be filed for more than 2.50 Lakh.
• The owner should own either a residential property or business premise.
• The business premises should not be the same as the place of residence.
• Business should have been in existence for at least 2 years.
• The borrower should meet the required Zipscore. It is a unique credit rating process assigned by Ziploan.
• The applicant should be above 25 years.

The following documents are required for the Ziploan Business Loan:

• Pan Card
• 2 Years' IT Returns
• Business Address Proof
• Residence Address Proof
• Bank Statement for the last 12 months.

There is an exponential growth in Start-Ups and Small Enterprises in the country. This has been possible with lending institutions like Ziploan, which offer financial assistance in real-time and when the business needs it the most. Business Loans are the best way to fund day-to-day operations as well as to take the business to the next level. But before seeking financial assistance, it is better to understand the types of loans the institution is providing.

Ziploan offers various kinds of Business Loans. They are:

1. Ziploan Term Loan- Small Business Loan

• Purpose of loan: This loan can be used for building fixed assets, purchasing business premise, purchasing machinery, and upgradation of existing machinery.
• Quantum of loan: Loan amount from 1 Lakh to 5 Lakh as per the requirement of the business.
• Repayment: The Entire loan amount, along with interest to be repaid within 12 months to 24 months.
• Collateral Security: No collateral security is required.
• Interest: Interest ranging from 23% to 29% p.a., depending on the Credit Score.
• Processing fee: Processing fee at 3%.
• Pre-closure charges: No pre-closure or part-payment charges.

2. Ziploan Line of credit

• Purpose of loan: This loan can be utilised to bridge the working capital mismatch. It can be used to procure inventory and to manage day-to-day operations.
• Quantum of loan: Line of credit can be raised from 1 Lakh to 5 Lakh.
• Repayment: This is a revolving limit. It is a permanent loan arrangement that a business owner has with the lending institution. Interest has to be serviced every month. The principal is repaid by way of sale proceeds credited to the account. The replenished amount will again be available for utilisation. Interest will be charged only to the extent of utilisation of funds. The loan account will be renewed every year.
• Interest: Interest rates range from 23% to 29% p.a. depending on the Credit Score.
• Collateral Security: No collateral security required.
• Processing fee: Processing fee of 3% of the loan amount.

3. Ziploan Equipment Loan

• Purpose of loan: To procure machinery like generators and other MSME machinery.
• Quantum of loan: Loan amount depends on the repayment capacity and nature of plan ranging from 1 Lakh to 5 Lakh.
• Repayment: Entire loan with interest should be repaid within 12 months to 24 months.
• Collateral Security: Hypothecation of assets procured out of the finance.
• Interest: Interest rate ranging from 23% to 29% p.a. depending on the Credit Score.
• Processing Fee: Processing fee at 3% of the loan amount.
• Pre-Closure Charge: No Pre-Closure or Part-Payment charges.

4. Ziploan Flexi Loan

• Purpose of loan:Loan can be used both for working capital requirements and for purchasing equipment. It is a kind of a pre-approved limit which the borrower can use as and when he or she requires.
• Quantum of loan: Loan quantum ranges from 1 Lakh to 5 Lakh
• Repayment: Flexible repayment tenure from 12 months to 24 months.
• Interest: 23% to 29% p.a. depending on the Credit Score. Interest is charged only for funds utilised.
• Collateral Security: Nil
• Processing Fee: 3% of the loan amount
• Pre-Closure Charge: No Pre-Closure or Part-Payment charges.

Applying for a Ziploan Business Loan is very simple. The loan has to be applied for online, following some simple steps.

• You can download the mobile app from the Google Play Store.
• Fill out the online business application form with correct information and submit.
• Upload the PDFs of the required documents for quick processing.

Their representative will process the documents and update the status through SMS and email. Alternatively, you can apply for Ziploan through MyMoneyMantra and avail free loan assistance along with it. We assist borrowers till the amount is disbursed to their account. 

The main factors affecting the eligibility for the Ziploan Business Loan are as follows:

• Income: The business entities should have an annual turnover of 10 Lakh. The IT returns of the previous year should be at least 2.50 Lakh, i.e., the business entity should have made a profit of at least 2.5 Lakh in the previous year.
• Age: The Age of the promoters should be more than 25 years.
• Relationship with the Bank: If one has applied for a Business Loan earlier with Ziploan and paid back promptly, then getting another loan will be easier.
• Loan Repayment: Existing loans and Credit Card dues should be repaid promptly. It is advised to pay your entire Credit Card dues, and not just the minimum amount a lot of people pay out a minimum amount while using a revolving payment facility. This can destroy your credit rating.
• Too Many Loans: Too many loans indicate the existing financial burden on the shoulder of the borrower. Lending institutions are skeptical about such profiles as in whether they will be able to take up the additional EMI burden. Also, too many loans show the attitude of the applicant to take refuge in loans for any fund requirement.
• Credit Score: The Credit Score determines the eligibility in terms of the repayment capacity of the applicant. Nowadays, even before verifying the documents Credit Score is evaluated. Credit Score is the scale to judge one's financial credibility. Ziploan insists on Credit Score above 700 though the creditworthiness is not solely assessed through this parameter. They also have their own unique Credit Rating called Zipscore to assess the creditworthiness of the borrower.

• Ziploan does not collect pre-payment charges. If funds are available, it is prudent to pre-close the loan since you can save a lot on the interest out-go. Depending on the business cash flow, periodic part payments can be made towards the loan to reduce the EMI tenure and close the loan account earlier. This will bring down the cost of the loan drastically.
• Part payments will reduce the interest outgo since the loan will be closed earlier than the stipulated tenure, and the interest will be saved on the unexpired period.
• Closing a loan account before maturity indicates that the applicant can generate funds other than by way of borrowing from financial institutions. This boosts your credit rating and makes you a safer prospect for the lender.

• Existing Customer: customer.care@ziploan.com
• Call us: 011-4310-9577 (10 am to 6 pm)