8 Reasons Why Unsecured Business Loan Helps Small Business Grow Faster

8 Reasons Why Unsecured Business Loan Helps Small Business Grow Faster

30 Dec 2019
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A business loan is a boon to entrepreneurs looking forward to establishing their own startup. Moreover, small business loans can also be helpful in business expansion and meeting working capital needs. With prominent lending institutions, availing a business loan is a completely hassle-free process. Additionally, lucrative interest rates and attractive features such as less processing fees, minimal and paperless documentation, and instant disbursal have added to the growing popularity of business loans. While availing a small business loan, it is always advisable to settle for an unsecured business loan. An unsecured business loan is the one where you don’t have to pledge any collateral while availing a loan amount. This keeps your valuable assets safe in case you fail to repay the business loan within the stipulated time. An unsecured business loan can contribute significantly to the growth of small businesses across our country. Business loans available at Finserv MARKETS are unsecured loans and can be availed easily through an online application process. There are various advantages of availing unsecured loans for small business. Some of them are mentioned below:

Easy availability

As compared to a secured business loan, availing an unsecured business loan is much easier. This is because while availing an unsecured business loan, you don’t have to pledge any collateral. Thus, it saves a lot of time as lenders do not have to evaluate the collateral before approving your loan application. Moreover, flexible eligibility criteria are yet another advantage of unsecured business loans. The eligibility criteria of business loans available at Finserv MARKETS are given below:

  • You must be an Indian Citizen

  • You must be a self-employed individual

  • Self-employed individuals between the age group of 26 - 66 years are eligible for a Business Loan

  • You must have 3 years of business vintage

Enhances credit score

  • When you apply for a business loan, financial institutions evaluate your creditworthiness by checking your credit score. A high credit score reflects your high repayment capacity. As a result of this, lenders may consider you a low-risk applicant and provide you an unsecured business loan with more favorable terms and conditions. Moreover, a high credit score will also provide you an opportunity to negotiate the interest rate with the lender. Thus, it is recommended to enhance your credit score before applying for an unsecured business loan

  • In addition to that, if you avail a business loan and make its timely repayment, you can also improve your credit score gradually

Flexibility

Unsecured business loans available on Finserv MARKETS have more flexible terms as compared to traditional loans. Moreover, you can also make use of the Flexi loan facility. Under the Flexi loan facility, the interest is charged only on the borrowed amount. Moreover, in case of Hybrid flexi loan, the principal amount is in your control and you can also make part-payments without bearing additional charges. You can also withdraw your money from your loan limit anywhere in a convenient way. You can easily avail all these benefits of Hybrid flexi loan by paying a nominal annual maintenance fee.

Paperless documentation

Since the entire process of availing an unsecured business loan is online, the documentation process is minimal and paperless. Applicants can upload the documents online. Post-verification of the documents, the lending institution approves the loan application. The loan amount is disbursed within a short span of time to your bank account. The basic documents required to avail a business loan available at Finserv MARKETS are mentioned below:

  • Aadhaar Card/Passport/Driving License

  • PAN Card

Customized business loan

You can easily customize unsecured business loans available at Finserv MARKETS to best suit your needs. It is advisable to compare various loan offers provided by different financial institutions before availing a business loan. This will help you find the best deal for yourself. Make sure you settle for a business loan with the most competitive interest rate. Lower the interest rate, lower will be the overall cost of borrowing in the long run. Business loans available at Finserv MARKETS have reasonable interest rates. You can avail a business loan of up to Rs. 30 lakhs for a repayment tenure ranging from 12-60 months.

Ensures operational successes

Operational stability is what helps a business make profits. With a small business loan, you can purchase raw materials, finished goods, or other items that are required for your business operations. The loan amount can also be used to pay wages, salaries to the staff and clear immediate bills and expenses. A small business loan also helps you in working capital management in case your bills receivables get delayed or you need to take care of unexpected operational costs.

Also know how you can apply for new MSME Loan scheme provided by the government for COVID relief

Safeguards you’re bottom-line

With an unsecured business loan available on Finserv MARKETS you get quick and easy liquidity this keeps your business far off from the debt traps of unorganized money lenders. Now you can safeguard your bottom-line more easily with business loan funds without having to worry about the long loan approval processes from banks.

Dynamic ticket size

An unsecured business loan does not require any collateral, therefore its value is not tied to the value of a fixed asset. You can avail an unsecured loan starting from Rs. 1 lakh and go all the way up to Rs. 1 Crore based on your business requirements.

Multi-purpose usage

An unsecured business loan is a short-term business loan, thus, lenders do not impose any restrictions on the usage of the loan amount. You can use the loan funds for all kinds of financial requirements in terms of your business operations which makes them excellent for boosting your working capital, business investment, and marketing activities.

Now that you are well aware of how unsecured business loan helps, ensure to make the most of it for establishing and expanding your business. Before applying for a business loan, you must check your loan eligibility. This will reduce the chances of your business loan rejection. Also, make sure to calculate your monthly installments before availing an unsecured business loan. This will give you a clear idea about your EMIs and help you plan your monthly budget wisely. Let us have a look at the steps to apply for a business loan:

With the help of prominent financial institutions, you can easily apply for a business loan from the comfort of your home through a hassle-free online application process. The steps to apply for a business loan are mentioned below:

  • Fill in the online application form consisting of your personal and financial details

  • Select the loan amount and the loan term

  • Upload the required documents

  • Post-approval and verification of your documents, you will receive the amount in your bank account within 24 hours

Apart from a convenient online application process, you can also access the details of your business loan through an online portal. You can easily check your balance, the amount of interest you have to pay on the principal, and your remaining loan tenure.

Once you have availed a business loan, you must ensure to utilize the loan amount wisely. You can use the loan amount to carry day-to-day operations, hire efficient employees, promote your products and services, etc. The loan amount availed through business loans can also be helpful in carrying out mergers and acquisitions. Additionally, you can also use the loan amount for developing the infrastructure, expanding online sales campaigns, marketing, and advertising budgets.

Also read what are the benefits on taking an unsecured business loan for your business loan.

Using the loan amount efficiently can help you take your business greater heights. Lastly, make sure that you read all the terms and conditions of your business loan agreement carefully before signing it. This will help you avoid any inconvenience in the later stage. In case you have any queries regarding your business loan, you must contact your financial advisor to have a better understanding of the loan. Business loans available at Finserv MARKETS come with less processing me and no hidden charges. This makes business loans available at Finserv MARKETS one of the preferred sources of financing for startups.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App