Under special business loan schemes by various banks,such loans are provided to traders,businessmen,entrepreneurs,professionals,self-employed persons. These loans are sanctioned against equitable mortgage of property. Loan can be repaid monthly,quarterly,semi-annually or annually and the tenure can go up to five years. No third-party guarantee is required. Since the loan amount you require is very less,you can secure it against FD or insurance policies,in case you hold any.

I am a graduate and I need loan to start a business. What is the minimum criterion?

Swapan Mishra,Delhi

The loan will depend on what kind of business you want to start. To get a loan,you have to prepare a business plan and have to convince the bank that you have the required knowledge of running that business. Depending upon the banks criteria,the bank may demand security against the loan,which could be your assets or investment in business. You will have to make a part of the investment from your side,since the bank will not provide 100 per cent finance for your business.

I am planning to take a car on loan. How much down-payment do I need to make?

Anindya,Noida

Generally,down-payment in case of car loans range between 15 per cent and 25 per cent. It varies from lender to lender and model of the car. You will have to decide the model first and then approach banks to gather the information required by you.

Is it beneficial to transfer my already existing home loan to another bank,and get it refinanced?

Soumya,Kutubgarh

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It is beneficial,only if the amount to be repaid will be lesser. Here,you have to keep in mind the foreclosure charges and the processing fee to be paid to the new bank. There should be an effective difference,if you are going to get your loan refinanced from some other bank. Another advantage of refinancing a loan is when if you break it into smaller EMIs. In this case,you can get it re-financed if you get smaller EMIs to pay,but the tenure will become longer and you will thus end up paying more.

The expert is Business Head,rupeetalk.com
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