What steps ought to I take to avail a mortgage for my subsequent enterprise?
I’m a 49-year-old failed businessman. Hitherto, I’ve been within the development enterprise, and tried my hand at working a manufacturing home and a restaurant. But, I suffered losses in all these ventures. Now, I need to begin afresh. I’ve land belongings value greater than ₹100 crore. What ought to I do to get a mortgage for my new enterprise venture?
—Name withheld on request
It looks as if you have got plenty of belongings and a breadth of enterprise expertise. I might advocate the next steps to navigate your manner in direction of securing a mortgage on your new enterprise.
Assess your monetary state of affairs: Before you can begin any new enterprise, it is advisable have a transparent understanding of your present monetary state of affairs. What are your liabilities and belongings? This ought to embrace all the pieces out of your liquid investments, property and land to money owed or excellent loans.
Evaluate your belongings: You have talked about that you’ve got land belongings value over ₹100 crore. This is usually a important asset. You want to establish the present market worth of those land belongings and method banks for retail lending.
Draft a marketing strategy: If you’re going for a mortgage quantity increased than ₹5 crore for your corporation; then lenders, particularly public sector banks, will need to see a marketing strategy which is also referred to as a venture report below the Project Loan Scheme. This ought to embrace an outline of the enterprise, market evaluation, group construction, product line description, advertising and marketing and gross sales technique, and a monetary plan.
Improve your credit score rating: A very good credit score rating can enhance your possibilities of securing a mortgage on beneficial phrases. You can enhance your credit score rating by paying off any excellent money owed and making certain that future payments are paid on time.
Research potential lenders: There are many several types of lenders, together with banks, non-banking monetary firms, and authorities packages. Each lender may have completely different necessities and supply completely different phrases, so it’s vital to do your analysis and discover the one that matches your wants the most effective.
Approach lenders: Once you have got your marketing strategy and have completed your analysis on potential lenders, it’s time to method them. Be ready with all the required documentation and to reply any questions they could have about your marketing strategy.
Raj Khosla is managing director at MyMoneyMantra.com
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Updated: 26 Jul 2023, 10:24 PM IST
