Ziploan Business Loan

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-

• It is a technology-enabled lending platform which makes fast funds available in real-time.
• The lending is marked by quick and hassle-free process.
• It involves simple documentation.
• The business loan is available at 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 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, 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-

• 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 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 Ziploan Business Loan:

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

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

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:

• Income: The business entities should have an annual turnover of 10 Lakh. The IT returns of the previous year should be at least for 2.50 Lakh, i.e., the business entity, should have made a profit of at-least 2.5 Lakh in the previous year.
• Age: 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.

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.

• Remarks like 'written off' and 'settled' can change the outlook of the lenders regarding the financial discipline of the applicant.
• If the promoter of the business is sharing accommodation with another person, then a faulty credit history of that person can have an impact on his profile. During the processing of the application if the address is found under a defaulter's list, then chances loan rejection are very high.
• The guarantor having a good Credit Score is as important as the applicant having a good score. Make the assessment of the guarantor before approaching the bank.
• If you have made too many loan enquiries and have too many unsecured loans, the bank will infer that you are a compulsive borrower. They may consider that you are in a financial distress and may not be able to repay the loan on time. In such cases the loan application may be rejected.

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?

• Visit the MyMoneyMantra website.
• Select the EMI Calculator under the financial tools tab.
• Fill in the loan parameters like amount, repayment period, and rate of interest to calculate the EMI.
• Click on the tab calculate.
• The EMI is calculated instantly.
• Try different permutations and combinations, to arrive at an affordable EMI you seek.

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.

• 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 periodical 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 out-go since the loan will be closed earlier to the stipulated tenure and the interest will be saved on the unexpired period.
• Closing a loan account before maturity clearly indicates that the applicant is able to generate funds other than by way of borrowing from financial institutions. This boosts up 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)