4 Notable Benefits of Taking Unsecured Business Loans

Small and medium businesses (SMBs) often need funds for various purposes, such as upgrading their inventory and investing in new technology. To fund such requirements, business owners commonly tend to rely on loans. In India, when SMBs apply for a business loan from traditional financial institutions such as banks, collateral is generally required. Thanks to non-banking financial companies (NBFCs), unsecured business loans are now readily available for SMBs. Are you wondering if you should apply for an unsecured business loan? Read on as we discuss some notable benefits of taking unsecured business loans.

1. No Collateral Required

An excellent source of money for your future business endeavours is an unsecured loan, as you don’t have to pledge collateral to the lender. This way, if for any reason you are unable to repay your loan, your lender cannot claim your assets. What’s more, this can be a great way to fund your business if you don’t have collateral to pledge in the first place.

2. Easy Eligibility Criteria

It is easy to qualify for an unsecured business loan when applied with an NBFC. They have easy qualifying criteria for unsecured loans. You may require to share proof of stable income, though. For that, you can furnish your financial statements for the last three years. Along with that, you will have to provide your Permanent Account Number (PAN). As long as you have all these and have a good CIBIL score, your chances of getting an unsecured loan are high.

3. Quick Loan Disbursement

Since there is less documentation involved, it takes less time to process your loan application. Most NBFCs have a streamlined and simple approval process. That way you can have the loan amount in your bank account in as little as an hour.

4. Flexible Payment Options

Generally speaking, you need to pay loans in monthly installments within a fixed time frame. It might be possible that the EMI amount for your loan can be more than what you can afford. This can put an extra financial burden on you. Unsecured loans, when applied for with NBFCs, give you flexible payment options. You have the choice to opt for a longer tenure that can lower the EMI amount, significantly lessening your monthly financial burden.

Wrap Up

Unsecured business loans can be a great way to acquire funds for your business without pledging any collateral. There are plenty of online loan companies that offer unsecured loans for businesses. Ensure that you perform your research and do your due diligence to compare loan offers offered by various lenders. Doing so will make sure that you get the best deal for your business loan. To get the best loan offers, connect with an online loan company or download a loan app that can help you find the best offers available.


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