What is Unsecured Business Loan

Unsecured Business Loan are the financial product that is introduced by the bank or NBFCs to the eligible business owners. Any person who passes the eligibility criteria can avail of the unsecured loan for business. This article will simplify the process of unsecured business loans in India and will also tell you the ways to avail of unsecured business loans online. The term secured or unsecured loans might confuse you a bit if you are not familiar with the loan terms.

Secured Loans are the one that needs collateral to be pledged in the Banks and the NBFCs for availing of the loans. The land, property, or any other thing that you have provided to the bank shall be kept by the lender till you complete the loan. On the completion of the loan tenure, the collateral or the pledged asset shall be returned to the borrower. If the borrower fails to repay the loan then the lender has full right to take possession of the collateral. The interest rate of the secured loan starts from 8.0% P.A. Borrower needs to complete the documentation that includes property documents, employment proof, ITR, KYC Documents, Udhayam Certificate (in case you are taking a loan for business purposes), etc. On submitting the documents a borrower will receive a soft approval of the business loan. If the borrower agrees to it then the lender proceeds to disburse the loan amount.

Unsecured Business Loans or Unsecured Loans, in general, are loans that do not require any security. These loans are approved based on your creditworthiness, income, and stability of employment. If the borrower has a credit score of more than 700 and has a turnover of more than 4 lakhs then it is easier for the borrower to get an unsecured business loan in India. However, the eligibility criteria and documentation do not end up here. The article will tell you about the eligibility criteria, documentation, and other requirements that you require to get an unsecured loan for Business hassle-free.

Features of Unsecured Business Loans

The attractive features of Unsecured Loans for Business make it the best financial product. There are many reasons to avail of the unsecured business loan. A few of them are mentioned below.

1. Higher Loan Amounts: With unsecured business loans the lender provides an attractive offer on loan amount. You can get financial aid of much higher loan amounts easily with just a few steps. A Business owner can avail up to 50 Lakhs from Unsecured Business Loans.

2. Fast Approval Time: As the process of Unsecured Business Loans in India has become digital, approval time has been reduced to just 24 hours. The borrower who has completed the documentation will get the unsecured business loan online approval within hours.

3. No Collateral Requirement: As already discussed unsecured loans for business are available with no security. You can avail of the unsecured business loan without pledging any asset just based on your creditworthiness.

4. Flexible Repayment Terms: Many lenders offer flexible repayment terms to the borrower. You can repay the loan in easy EMIs and can always be stress-free with financial aid.

5. Flexible Use of Amount: There is no restriction on the use of financial aid. You can use the loan amount to make the most of your business. Grow your business with the help of an unsecured loan for Business.

6. Easy Application Procedure. With technology, the process of applying for an unsecured business loan has become easier. You can apply for an unsecured loan for Business easily by filling up the application form online.

Who can take Unsecured Business Loans

There is no restriction on the type of businesses that can get the unsecured business loan in India. Sole proprietor, partnership or LLP firm, a private limited or public limited company Manufacturers, distributors, wholesalers, retailers, traders, commission agents, service providers, consultants, freelancers, professionals anyone can avail of unsecured business loans.

Eligibility Criteria for Unsecured Business Loans

The eligibility criteria for the Unsecured Business Loans are as follows. If you pass the eligibility criteria then you can avail of the unsecured loan for Business easily.

The Age of the borrower must be between 21 and 65 years.

Business standing of a minimum of 1 to 3 years depending on the type of loan and financial institution.

A credit score of 650 or above of the company.

Consistent profitability and growth record of the business.

Documents required for Unsecured Business Loans

Get an unsecured business loan online and complete the documentation through the digital process. To get the Business Loans a business owner must have the following documents.

Identity Proof: Aadhar card, Driving license, Passport, Voter ID

Address Proof: Aadhar card, Utility bills, Passport

Business Proof: Certificate of registration or constitution, Latest utility bills, Any

statutory registration like GST, MSME, PF, and ESI

Income Proof: Latest audited financial statements, Latest income tax returns, Last 6 months’ bank statements, GST returns

How to apply for an unsecured loan for Business

The process of unsecured business loans online is mentioned below. Follow the steps and get the loan approved hassle-free.

Search for the best lender of Unsecured Business Loan and then visit their website.

Complete the application form and complete the documentation online.

Get personalized guidance from the executive

Get quick approval of the Unsecured Business Loan. Understand the terms and conditions and approve the loan amount.

Get a quick disbursal of the unsecured loan for Business.

Conclusion

With the technology advancement taking Unsecured Business Loan has become easier. You can directly apply for the loan online and get it approved in no time. You can either search for the best lender for the unsecured loan for Business. Or you can get in touch with the top fintech companies like My Mudra which provides financial aid. These companies have tied up with multiple banks and NBFCs. Hence, can help you get the best offer on an Unsecured Business Loan at your terms and conditions.