Small business owners must choose Ziploan to solve their fundamental issue of capital availability. The advantage a business owner can enjoy by approaching Ziploan include-
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, purchase of new machinery and replacement of old and obsolete machinery, etc. You get funding for all that, that 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 business owner.
Zip Score: Ziploan does not rely on 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 Business Loan despite a low credit rating from CIBIL or Experian.
Processing Fee: 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-
The following documents are required for Ziploan Business Loan:
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 for taking up 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, purchase of 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: 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 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 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 rate range from 23% to 29% p.a. depending on the Credit Score.
Collateral Security: No collateral security required.
Processing fee: Processing fee at 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 Ziploan Business Loan is very simple. Loan has to be applied online following some simple steps.
Their representative will process the documents and update the status through SMS and emails. Alternatively, you can apply for Ziploan through MyMoneyMantra and avail free loan assistance along. We assist borrowers till the amount is disbursed to their account.
A Clean Credit History: A clean credit history is a must for getting loans from banks. Always repay your Credit Card bills and loan EMIs on time, particularly if you seek credit in future. A good credit history improves the Credit Score and minimizes the repayment risk for the lending institution.
Loan Tenure or Period: Choosing a longer loan tenure, in the beginning, is better since it will reduce the monthly out-go towards EMI. Later, depending on the cash flow of the business, part prepayments can be used to reduce the loan tenure.
Credit Worthiness: CIBIL Score is the scale to measure one's creditworthiness. Hence you should always maintain your Credit Score. The required credit score for Ziploan business credit approval is 700 and above. However, the lender will also consider your Zipscore.
The main factors affecting the eligibility for Ziploan Business Loan are as follows:
Increased Number of Unsecured Loans- Maintaining a balance between secured and unsecured loans is a must. Too many unsecured loans indicate the inability of the applicant for arranging funds. More number of unsecured loans will thus bring down your Credit Score.
Multiple Loan Applications- Frequenting different banks in quest of a loan will reflect in the Credit Report in the form of loan enquiries. If such enquiries are too many then the Credit Score will be negatively impacted.
Delayed Payments- Prompt repayment of Credit Card dues and existing loan repayments will keep the Credit Score high. If there is any delay in payment of dues and loan repayments then the Credit Score will decline which will make it difficult to get a loan sanction easily.
Usage of Credit Limit- Credit Card is a tool to be made use of for high-end purchases for which immediate cash is not available. It should be used wisely; and never indiscriminately for anything and everything. If one draws a line up to 60% of the usage of Credit Card, the Credit Score will speak for it. Using the Credit Card up to the maximum level or beyond the limit will bring down the Credit Score.
It takes five years for the data in a Credit Report to change. So, if one has defaulted during the period, it will be reflected in the report, even when the dues are settled down. The reasons for the default could be many. In such cases sometimes, the loan would either be settled or written off, and these remarks would appear in the report.
These remarks make a negative impact on the Credit Score. Even later, when one's Credit Score would come back to the required level, these negative comments will be viewed critically by the lending institutions.
With MyMoneyMantra Business Loan EMI Calculator you can instantly evaluate EMI for your loan. All you need to share is loan interest, quantum, and tenure, in the Calculator and instantly the monthly, as well as overall repayment amount, is shared with you. The interest and the principal will be shown separately to give you an idea about the contribution towards interest and principal amount.
There is no charge for calculation on the MMM EMI Calculator. Enter the details and click the button for computing the EMI. If you find the interest payable on borrowed sum too high, then you can consider changing the loan parameters. You can try different combinations to find the best deal according to your repayment capacity.
How to use MyMoneyMantra EMI Calculator?
Benefits of Calculating EMI before Availing a Loan
When you assess the EMI burden before applying for a loan, you are better prepared to repay the loan. You can plan your EMIs and ensure successful repayment every month. Indeed you can also plan the prepayment of loan and plan to become debt-free as soon as possible. The successful payment of loan builds your Credit Score and makes you creditworthy for future loans.
The prepayment of loan can be planned in multiple ways. You can pre-pay a lumpsum amount and reduce either the EMI or tenor. In both cases, your interest outgo would be significantly reduced.
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You can apply for Ziploan Business Loan for the following purpose:
Ziploan is technology enabled NBFC registered by RBI. They offer Small Business Loans in the fastest and simplest way. Amount will be available in the account within 3 days provided all the criteria stipulated by Ziploan are met with, and the documents are submitted as required. They are present in Delhi NCR, Indore, Jaipur and Lucknow.
Many small business entities are not able to satisfy all eligibility norms of major financial institutions. At Ziploan availing a Business Loan is relatively simpler and faster. The creditworthiness is not assessed by the scores given by the regular Credit Bureau, but following their Credit Rating process. The Ziploan rating system is based on the information they gather from multiple data points. This helps the lender assess the creditworthiness of the borrower more practically and efficiently.
Ziploan is better than many other banks/NBFCs because:
All this extends complete flexibility to the borrowers. In business, liquidity of funds acts as one of the most important factors for capitalising growth.
You can get your loan application processed online at Ziploan. The loan can be applied either through their app, that can be downloaded through Google Play Store or through MyMoneyMantra.
At MyMoneyMantra, you get free loan assistance, and a loan specialist will take care of all the nuances of applying for a Business Loan. The team helps you find the best loan product according to your repayment capacity.
The following documents are required-
It is completely safe and secure to apply for loan through MyMoneyMantra. You personal data/ information including your name, mailing address, phone number, email address, Pan Number, GST number, SMS phone details, phone contacts, location, call logs, Income Tax Returns, Personal Statements, Driving Licence, Income Sources and financial information is only used by Ziploan to evaluate your application. The data is not shared with any third party. Most small businesses do not have all the necessary documents, so evaluation of data helps to streamline in-house Credit Rating Process. All the information collected will be encrypted and the transaction will be safe.
After submitting the application with the required documents, the evaluation will be done. Once this is complete, the loan will be disbursed within 3 days.
The status of the application can be checked in the following ways-
Ziploan allows the borrower to borrow a certain amount over and above the outstanding balance in the existing loan account.
Top-Up Loans come with a lower rate of interest and lower processing charges compared to the existing loan.
If the tenure for the current loan is 12 months, then the Top-Up Loan can be availed after successfully paying 6 months EMI without bouncing. If the tenure for the current loan is between 18 months to 24 months, then the Top-Up Loan can be availed after successfully paying 9 months EMI without bouncing.
You can apply for Top-Up Loan through your existing loan account or through MyMoneyMantra.
The following are the eligibility criteria for Ziploan Business Loan-
Yes, loan can be paid before the stipulated tenor. No pre-closure charges will be collected.
EMI can be paid in 3 ways-
Yes, CIBIL Score will be required, though it is not the only criteria to evaluate your creditworthiness. They have a unique holistic Credit Rating Process called Zipscore in which business evaluation will be done for factors beyond the CIBIL score.