📝Application:
Business owners begin by submitting a loan application to the chosen lender. This includes details such as the intended use of the loan, a comprehensive business plan, financial statements, credit history, and any collateral if required.

✅ Approval:
The lender then reviews the application, evaluating key factors like the business’s creditworthiness, financial stability, industry type, and ability to repay. If approved, the lender presents a loan offer that includes the sanctioned amount, applicable interest rate, and specific repayment terms.

💰Disbursement:
Once the business accepts the loan offer and completes the documentation process, the lender disburses the funds directly into the business’s bank account. These funds are then used to address the business needs outlined in the loan application and agreement.

🔁Repayment:
The loan, along with the accrued interest, must be repaid over an agreed-upon period known as the loan tenure. Repayment terms can vary across lenders and may include options such as fixed or variable interest rates, monthly or quarterly payment schedules, and flexible structuring.

📊Interest:
Interest on business loans is calculated based on the outstanding balance, typically on a reducing balance method. The rate may either be fixed for the loan duration or fluctuate with market conditions, depending on the loan agreement.

🔐Security:
Depending on the borrower’s credit profile and the lender’s policies, business loans can be secured or unsecured. Secured loans are backed by assets (business or personal), offering lower interest rates and greater approval chances. Unsecured loans, which do not require collateral, usually carry higher interest rates and have stricter eligibility standards.

📄Loan Closure:
Once the principal amount and total interest are fully repaid, the loan is officially closed, and the borrower’s obligation is complete. Some lenders may offer early repayment benefits or discounts for timely payment behavior.