Understanding Secured Funding in India

In this growing world, everybody in some or another other way requires funding. i.e. to meet the expenses, also they may not have personal funds or savings to complete those. Such a need can arise for companies.

If we talk about a business, the need for finance can be for expansion, reconstruction or to pay the dues. At this moment the thought of a loan comes into the picture. Now the loan can be taken in two types-namely secured loans and unsecured loans.

Here, we will discuss getting secured funding in India.

What exactly are Secured loans?

Secured funding is a type of loan where the borrower has to keep collateral of assets or security against the loan. In case of default, the lender has the right to put the asset or security pledged on auction and recover the amount from it. The borrower here does not have personal liability towards the loan. The period of loan offered in secured is high with a low Rate of interest. 

We at Terkar Capital make an easy process of securing loans for our customers. Our team of experts analyzes each aspect properly and works accordingly.

Features of Secured Loan

• The interest rates in secured loans are lower than unsecured due to the presence of security.

• Customer credit is not the compulsory criteria here, banks may or may not ask for a CIBIL score. In the case of secured loans, the borrower gets a loan even if its CIBIL score is less.

• The period of the loan can be both fixed and variable. The borrower has the option to extend the period of the loan.

• In case of default, the lender can recover the amount from the mortgaged asset.

The disadvantage of secured loans

• If the borrower even after the tenure of the loan is unable to pay off his loan amount his CIBIL score will get affected. However, this will also influence his future loans.

• In case of default, the asset will be seized by the lender's company and an auction will be conducted to recover the amount. So, the borrower will lose its asset, which may affect its business directly or indirectly.

• The procedure or time required of a loan is lengthy as the lender has to inspect many things right from assets information to borrowers' business, etc. Heavy paperwork is another disadvantage of secured loans.

Who can apply for Secured Loans?

The businesses or corporates that have fixed assets and need money for expansion, reconstruction, undertaking new ventures, or paying dues can apply for secured loans.

Eligibility

• The applicant should be a Resident of India.

• The age of the applicant should be between 18 to 60.

• The applicant should possess a fixed asset.

• Many times there are income-based eligibility criteria for loans but there are no such fixed structure criteria, it varies. The companies have to provide certain income statements or financial statements as per the requirement of the lender.

Why Terkar Capital?

Terkar Capital is one such financial firm, that provides hassle-free secured as well as unsecured business funding in India. We are one of the most modernized and highly specialized loan facilitators which understand borrowers’ needs, strengths, and weaknesses and work hard to provide the best services. So whenever it is raising funds, it is us!

 

 

How to get Project Funding?

 

Project funding in India

Project Funding

A lot of us have a dream of making our project successful and known to the world. All we need is a little push, it could be motivation, it could be one missing bit of a brilliant idea, or it could be the lack of funds. Project funding in India is one of the most important yet not widely known aspects of aspiring entrepreneurs. Before going ahead with the process to get a project financed, it is essential to understand what exactly project funding means.

What is Project Funding?

There are different kinds of requirements at the time of starting a project. Project funding is among the most basic yet significant parts of any business venture. These are the funds that are generated in order to pay for the initial labor, capital, and other requirements. A project loan is provided for new business setups, reconstruction, or expansion of an existing business enterprise.

What are the Criteria for Project Funding?

Project finance is provided considering certain important aspects on which the amount is decided. The criteria that matter at the time of proposing project finance are as follows:

1. Project Viability Analysis:

The viability of the project is decided based on its economic merits and demerits. If whatever benefits are to be made from the project economically are higher than the costs and expenditure, then the project is considered viable. Such an analysis will allow the funding agency to know if the project is worth financing and if the proposing entity is capable of paying off the loan.

2. Mortgage Available:

In the case of project funding, the mortgage is generally the project itself and the revenue to be generated from it. A loan is provided by the concerned financial institution if there is enough mortgage available on the project. The lender has to see potential in the venture to be able to sanction the loan.

3. Payback Period of The Project:

If the project seems to take too long and there is no sooner way to generate revenue, there are chances that the proposal may even get rejected. There are certain professional consultants who will help you in drafting a proposal that will increase your chances of obtaining project funding.

4. Personnel Profile and Experience:

In other words, the businessperson’s ratings are considered at the time of deciding the amount of funding that can be provided. If the proposing personnel has considerable experience in the commercial world, the chances of getting the project finance sanctioned are quite high. If there are any issues found with the personnel or the project, the project may get rejected. Acquiring professional assistance can help you get through to the funding agencies conveniently and help get your project approved.

Location and Market Demand for Product

The location and the requirement of the product or the service the project seems to sell must be well enough to give the lenders assurance that the project will be successful and the borrower will be able to repay the loan in time as well. If the product is common and easily available, there are chances that this can get the proposal rejected.

Who can provide Project Funding in India?

Even though there are multiple agencies operating in the debt market, there are limited sources to acquire project funding. Mainly, the government and the cooperative banks are the ones that provide such kinds of finances if your project is pleasing enough for them. Else, there are quite limited project funding agencies in India. It is essential to find a trustworthy yet providing funding agency for the project proposal in India as these generated funds are the backbone of your dream project.

Project Funding at Terkar Capital

Terkar Capital provides services of project finance in India. It is known to provide maximum finance with minimum collateral letting even the young and beginner entrepreneurs build an eminent commercial organization. The funds can be generated as per the requirement, be it periodically or all at a time if the project proposal has influenced the provider enough.

Services are confidential and the level of integrity in the utilities is well-maintained. The processes are not hidden from the customer and the services are in the best interests of the clients including HNIs, SMEs as well as startup companies. The safety of the transactions is ensured by helping the seekers build a future for themselves.