To be honest not all business owners can offer collateral to a bank or an NBFC for their immediate cash requirement. This means they need to apply for an unsecured loan. When lenders provide loan to a loan applicant without any collateral, it is termed as an unsecured loan. Generally, collateral is an expensive asset that can repay the damage caused by the failure of loan repayment. But when you have nothing to offer, an unsecured loan is your best option.
So what exactly you need to know before you apply for a collateral free loan?
The first thing is, you need to pick the best financial body. When it comes to unsecured loan NBFCs are better options as not all banks are ready to give you the collateral free loan. Say, Bajaj Finserv. It is a reputed financial body that has been assisting business clients for many years with collateral free loans for business purpose.
You get flexibility as per loan repayment scheme and tenure. NBFCs offer a competitive rate of interest for unsecured loans and long tenure. You can pay the loan amount through EMI facility also.
Business loans that are collateral free can get you up to 30 lakhs of the loan amount depending upon your eligibility criteria and CIBIL score. Just be sure to calculate your EMI before you apply for the loan through online EMI calculator.
With private institutions such as NBFCs, you get pre-approved collateral free loan facility.
You need basic documents such as Income Tax returns for the last year, business turnover report, and you should not be less than 22 or more than 55 years of age.
So it is easy to get your business loan if you know the right place to approach.
