The Indian financial market has made borrowing simple with its variety of funding options. The business sector is one of the borrowing segments that has benefited the most from the diversifying loan options that financial institutions today provide. Among the several loan options that entrepreneurs can look out for to meet their funding needs, an unsecured business loan has turned out to be a quite popular one. These financing options are typically popular for their easy availability and zero requirement for any asset as collateral. As these are high-value advances and easy to repay over an extended tenure of years, the borrowing business can make sure to manage the advance conveniently through repayment in easy EMIs.
Several other benefits related to the loan make it a favorable borrowing option for businesses. Availing the advance is simple and convenient too. You only need to meet a handful of eligibility and document requirements to avail financing. Nevertheless, since the loan is collateral-free, the need to meet all the criteria is pretty strict with zero flexibility unless you hold a borrowing leverage. Let’s find out what are the things you need to do and steps to undertake to avail a collateral-free business loan.
Check Features, Benefits, and Interest Rates Applicable
When planning to avail an unsecured business loan, you must make sure to go through the features and facilities that accompany it. It should keep you well-informed regarding the loan options available in the market, and help choose the best one as per your requirements.
Keep yourself updated with the available loan features and benefits. For instance, you can get a financing value of up to Rs.25 Lakh as business loan with a tenure flexibility of up to 5 years for easy repayment. With the right eligibility, you can also receive quick approval for your advance, likely within a few minutes of application. The disbursal comes by quick too, within the next 24 to 48 hours.
While at it, also make sure to check the unsecured business loan interest rate and other charges applicable to the advance. The right lender accompanied by suitable borrower eligibility make it easy to secure low rates of interest on the advance for financing affordability.
Meet All Eligibility Criteria Set By Your Lender
Once you have finalized the loan option to avail based on the features and facilities, proceed to check if you meet the necessary eligibility requirements or not to avail the funding with ease. Some simple requirements that you must meet as a borrower of an unsecured business loan include the following.
- Credit score: Both the borrowing individual and business must hold a credit score of 700 each or above to be eligible for the collateral-free advance.
- Age: The borrower must be at least 21 years old and up to 70 years at most to avail the financing.
- Business vintage: The business must also be up and running for not less than 3 years.
- Residential status: The individual must be a residing Indian citizen for at least a year or more.
- Income stability: The business must earn a minimum income defined as per the city they are located in.
Apply for Your Unsecured Business Loan Online
If you meet all the eligibility criteria, proceed to apply for your unsecured business loan online in a few simple steps. Visit the official website of your lender and fill up the application form with essential personal and financial details. Recheck your entries to ensure the accuracy of information entered, and submit the application form. Complete the application by fulfilling the paperwork requirement.
Submit All Required Documents to Complete Paperwork
When through with the application form fill-up, make sure to submit the documents required for your unsecured loan approval either online or offline. Thankfully, the paperwork completion is easy with only a few documents required which relate to the borrower eligibility as a proof of such fulfilment. Other than that, if you are applying for the loan with a new lender, you would also need to provide your identity and address proofs to complete the KYC process.
It is ideal to go for an online application of your unsecured business loan because it eliminates the need to step out of your home for any purpose. Even if you choose offline document submission for the completion of your application, the lender provides doorstep document collection facility which makes the entire process simple and easy to avail.
