Collateral Free Business Loans can help small businesses

How can a Collateral-Free Business Loan Help Small Businesses

30 Jul 2020
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Small businesses are an important engine for economic growth creating jobs, investing in local communities and spurring positive change in neighbourhoods across India. However, managing a business is not easy; you need to have sufficient finances to grow your business. Many budding entrepreneurs tend to use all of their personal savings to fund their business, but this only makes it more difficult to manage their personal needs and livelihood. In this case, taking a business loan is an ideal option. Getting a small business loan makes it easier for business owners to get the necessary funding for their business. This will not only improve the overall productivity but also make entrepreneurs concentrate on growing their business rather than dealing with insufficient liquidity.

  • Collateral Free Business Loan

With an instant business loan, the loan process is quicker and easier to acquire. Long back if a business owner required a loan for their business, the process for the same would have been time-consuming and tedious. But with the advancement in technology now it is easy to apply for a loan for business and get your loan approved within a short period of time without going through tiresome application processes. Many financial institutions offer collateral free business loans that are designed to help small businesses reach new heights. By applying for business loans you can meet different needs of business ventures, such as machinery loan, unsecured working capital loan, capital loan, and term loan. A business loan can help small businesses in numerous ways as discussed below.

  • No Collateral Required

A collateral free business loan does not require any security. For a small business start-up, these loans can help you meet your business requirements and grow your business. Even if you do not own any assets, you are eligible to apply for the loan. There is no risk of losing your asset if you do not make the repayment on time. You just need to make sure you complete your business loan EMI payment on time without any default.

  • Maintain Cash Flow

You can apply for a loan for any purpose in the business. There are no restrictions on the end-use. When you apply for a collateral-free loan, you can maintain the cash flow in your business. It will not have an effect on the working capital because you will have funds to use for business expansion.

  • Quick Disbursal Of Loan

Quick disbursement of loan makes it easier for a business owner to utilize it for their business. There are no documents to be transferred under the name of the lender and there is no requirement of valuation of the property. This leads to a quick approval and an instant disbursal of funds. The flexibility makes it easier for borrowers to avail a loan for the business facility.

  • Flexible Loan Repayment

Business loans are unsecured loans this means it is given for a shorter period. Generally, the loan tenure for this loan is between 12 months to 60 months. You can choose between short term and long term loans based on your business requirements. The loan has a high approval amount and you can repay the loan amount with interest over the tenure. You can prepare a repayment schedule to ensure timely payment of dues.

  • Adds To The Revenue

An Instant business loan can be used for various purposes depending on your business and what you intend to do with the loan amount sanctioned for your business. When you utilize the fund for the growth of your business, you will notice an increase in productivity, sales and revenue. The loan funds will ultimately benefit the business and have a positive impact on your balance sheet and help your business to grow further.

Business Loan Eligibility

There is a basic eligibility criterion that needs to be fulfilled for a collateral free business loan. They are as follows:

  • The applicant must be a citizen of India

  • Must be a self-employed individual

  • Self-employed individuals between 26 - 66 years are eligible for this loan

  • Your business must be at least 3 years

Also read about how to get business loan without an ITR.

Bajaj Finserv business loans are collateral-free, which means you do not have to put your personal or business assets on the line to get the finance for your business. At Finserv MARKETS, you get loans at attractive interest rates for undertaking various business operations, such as an expansion of your business, acquisition of other companies, buying high-value and getting new machinery or equipment, etc. You can simply apply for small business loans online and get pre-approved offers for an instant loan without security from Finserv MARKETS. With personalized pre-approved offers, instant approvals, and quick disbursal of loan amount, on the Finserv MARKETS App, you can get the most attractive interest rates on loans. By applying for a Bajaj Finserv Business loan you can check your CIBIL Score for free and also obtain a Financial Health Check Report (FHCR).

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.”