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Everything about Collateral Free Small Business Loans

By Finserv MARKETS - Jul 27,2019
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Collateral Free Business Loan

Small or medium enterprises might struggle to provide assets to keep as security collateral while thinking about loan products. Unsecured business loans have opened up new avenues for accessing credit without the need for guarantors or assets to back up the required loan amount. They serve as compelling options if you need cash flow to purchase assets such as equipment or even cover for monthly expenses such as electricity bills. Bajaj Finserv business loans offered through digital platforms such as Finserv MARKETS can help you access affordable money. The business loan interest rates are competitive and can reduce the additional financial burden that comes with taking on a business loan.

With simplified online applications, loan providers are looking to improve the user experience and customer satisfaction and retention. With an unsecured business loan, you can ensure cash flow without worrying about excessive documentation and asset requirements. It is a quick and simple way to cover for business-related expenses. Let us look at how collateral free business loans can be used to reduce the financial stress associated with debt obligations.

Unsecured business loans improve access

No matter what your business needs might be – whether expansion to a new location, verticals or requirements for improved equipment – a collateral-free small business loan can help you fulfil your goals. The current economic landscape provides significant impetus for small businesses to thrive. Loan providers are stepping in to ensure that businesses have the requisite capital to keep up with consumer demands. With a new business loan from online platforms such as Finserv MARKETS, you can enable your business to reach new heights in an affordable and secure manner. Due to their unsecured nature, there is no need for business owners to worry about collaterals. They are a safe and efficient way to access the funds needed for them to scale their operations.

Growing your business with unsecured business loans

If you are new to the application, process, online financial platforms can support you in your journey right from applying for the right business loan to assistance on repayments. The platform can enable you to find a leading loan provider with transparent procedures in place to ensure financial stability and security through the process. It is important to have the right documentation in place before applying for a loan to ensure that there are higher chances for loan approval. With this factor in mind, your new business loan can be customized as per your business needs and is relatively flexible in the way the amount is spent. You can even opt for a repayment tenure of your choice to maximize the convenience associated with the repayment process. Before applying, also check your monthly outflow on business loan calculator.

Eligibility of Unsecured Business Loan

An unsecured business loan is a great source of financing for small businesses. However, before you apply for an unsecured business loan, make sure that you calculate your loan eligibility beforehand. This will reduce the rejection chances of your loan application. Business loans available at Finserv MARKETS have an easy application process and simple eligibility criteria.

The eligibility criteria are mentioned below:

  • You must be an Indian citizen
  • You must be self-employed
  • You must be between 26-66 years of age
  • You must have 3 years of business vintage

Documents Required for Collateral Free Business Loan

Before applying for a business loan, make sure that you have all the necessary documents readily available with you. This will ensure that your loan approval is smooth and hassle-free. The documents required to avail an unsecured business loan are mentioned below:

  • Aadhar Card/Passport/Driving License.
  • PAN Card.
  • Last 3 years ITR, balance sheets certified/audited by a CA.
  • Last 12 months bank account statement

Additional documents may be required depending upon the kind of loan you select for yourself.

Interest Rates and Charges of Collateral Free Business Loan

You must opt for a lender that offers business loans at competitive interest rates. This will make your EMIs affordable are reduce the repayment burden of your business loan. Let us have a look at the interest rate and other charges associated with Bajaj Finserv Business Loan.

Type of charges Rate
Interest rate 18% per annum onwards
Processing fees Up to 3% on the principal
Foreclosure charges 4% of the outstanding loan amount + taxes
Annual Maintenance Charges 0.50%
Penal interest 2% per month
Outstation collection charges Rs. 65 with applicable taxes

Some of the other advantages of business loans available at Finserv MARKETS are withdrawals, no hidden charges, and flexible repayment options, etc. Moreover, you can also customize your business loan to best suit your needs.

Features of Collateral Free Business Loan

You can easily access a small business loan without the requirements of a guarantor or other collateral within 24 hours on platforms such as Finserv MARKETS. The loan amount offered can be up to Rs. 15 Lakh. This amount can be accessed with minimal documentation and additional benefits such as loan approval within minutes to help you secure cash flow in a quick and efficient manner. Few Non-Banking Financial Corporation(NBFC) provide special benefits such as ‘principal holiday’, unlimited withdrawals, and flexible part payments to take care of all your requirements while you focus on the needs of your business.

With the growing economy, now is the right time to look at expanding the scale of your business. Through unsecured personal loans, you can easily convert your dreams into reality. Before taking on a business loan, you should consult a trusted financial advisor on a portal such as Finserv MARKETS that provides 24×7 support and assistance on the loan process.

A quick and easy-to-access business loan can help you take care of all your financial needs and ensure that you achieve your business goals. It removes the significant hassles associated with taking on credit through credit cards or borrowing from family and friends. Without the need for a guarantee and excessive documentation, the unsecured business loan can be your go-to option for your requirements.

Download Bajaj Finance App, to get personalised offers on Business Loans.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522