What steps should I take to avail a loan for my next business?

livemint.com:

I am a 49-year-old failed businessman. Hitherto, I have been in the construction business, and tried my hand at running a production house and a restaurant. But, I suffered losses in all these ventures. Now, I want to start afresh. I have land assets worth more than ₹100 crore. What should I do to get a loan for my new business project? —Name withheld on request It seems like you have a number of assets and a breadth of business experience.

I would recommend the following steps to navigate your way towards securing a loan for your new venture. Assess your financial situation: Before you can start any new venture, you need to have a clear understanding of your current financial situation. What are your liabilities and assets? This should include everything from your liquid investments, property and land to debts or outstanding loans.

Evaluate your assets: You have mentioned that you have land assets worth over ₹100 crore. This can be a significant asset. You need to ascertain the current market value of these land assets and approach banks for retail lending.

Draft a business plan: If you are going for a loan amount higher than ₹5 crore for your business; then lenders, especially public sector banks, will want to see a business plan which is also known as a project report under the Project Loan Scheme. This should include a description of the business, market analysis, organization structure, product line description, marketing and sales strategy, and a financial plan. Improve your credit score: A good credit score can increase your chances of securing a loan on favourable terms.