Planning to start your own business? HERE is the list of all the banks providing loans for small businesses
Owners of small businesses can apply for loans from a variety of sources, including banks and microfinance institutions.
Small businesses are often considered as the backbone of any economy, and many microfinance banks in Pakistan have been granting loans to them.
Owners of such small-scale businesses can apply for loans from various sources, including banks and microfinance institutions.
Here are some of the steps to get a loan for your business:
Step 1: Choose the category
Before applying for a small business loan, you must learn that banks and microfinance institutions have different loan categories. Therefore, apply for a small business loan following your business type and requirements. You are also required to consider the loan length and its particular terms before applying for the loan.
Step 2: Identify your lenders
The next step is to recognize your lenders. You are required to carry thorough research on your business. It will help you identify the lenders who could provide you loans at the lowest interest rate in line with your business’s nature and type.
Step 3: Review your credit risk capacity
Analyzing your credit risk capacity is very important before you apply for a loan. You are required to assess your profile from the lender’s perspective. Consider the following critical factors while reviewing your profile:
- Assess your credit history
- Analyze your cash flows and unsettled loans
- List down your financiers (if any)
- Make a list of your business assets (if involved)
- Review your business financial statements
- Understand every reasonable point related to your loan application
Step 4: Explain your loan Usage
One of the most crucial tasks is to mention the usage of your loan to its lender. It would confer your financial situation to lenders and help them understand how you will be spending the loan, i.e., purchasing equipment or capital expenses, etc.
In the end, the lender is concerned mainly about the payments of loans on time. Therefore, selecting transparent financing is also required, especially for small business owners.
Step 5: Banks offering loans
Here is the list of some microfinance organizations and banks that give loans to small businesses in Pakistan:
- U-Microfinance Bank Limited
- Mobilink Microfinance Bank Limited
- Pak Oman Microfinance Bank
- FINCA Microfinance Bank Limited
- NRSP Microfinance Bank Limited
- Tameer Microfinance Bank
- Khushhali Microfinance Bank
- Apna Microfinance Bank Limited
- First Microfinance Bank Limited
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