30 Oct 2019 | 7 min read
So you’re planning to expand your business!! You have an out of the box business idea, and you need funds to get the ball rolling.
But by now, you must have understood, it ain’t cheap to swell up a business with limited funds. To grow your business, it requires huge capital, which is not easy to arrange. But facilitating them without putting up collateral, is all one needs to make a mark in scaling up the business to new heights.
Paying out of pocket to get things up and running is not the only option, and here we are going to tell you, you are not out of luck if you are unable to bear all the business costing by yourself. Various financial institutions provide business loans without putting up any collateral as security, often known as Unsecured Business Loans.
A business loan availed from any financial institution without putting up any collateral as security is known as Unsecured Business Loan or Business Loan without security.
Every business requires funds to sustain and grow and having enough capital ensures that it runs smoothly. Arranging for funds every time by oneself is not a cakewalk. In such cases, you can plan for going ahead with Unsecured Business Loans which will take care of the regular payment for the staff, purchasing of the new machinery, purchasing of other business assets, etc.
Banks and NBFC’s are your go-to options to approach for the funds, for businesses that do not own any considerable assets to put up any collateral as security.
Financial institution |
Loan amount |
Interest rate |
Loan tenure |
Up to Rs. 50 lakh |
11.90% - 21.35% p.a. |
12 – 48 months |
|
Up to Rs. 5 lakh |
As per bank’s policy |
As per bank’s policy |
|
Rs. 50,000 –Rs. 50 lakh |
As per bank’s policy |
As per bank’s policy |
|
Up to Rs. 50 lakh |
16 – 30% p.a. |
12 – 36 months |
|
Up to Rs. 50 lakh |
15 – 24% p.a. |
12 – 36 months |
Banks understand the various issues in raising a huge sum of capital to fuel the business. Therefore, almost all private and public sector banks provide business loans to consumers without security. Popular banks providing unsecured business loans are SBI Bank Business Loan, Axis Bank, ICICI Bank, HDFC Bank, Yes Bank, Corporation Bank, Punjab National Bank, Bank of Baroda, Syndicate Bank, etc.
Financial Institutions like IndiaBulls, zip loans, IIFL, Bajaj Finserv,indifi, Tata Capital, Lendingkart, Cashkumar, etc. are the leading lenders of unsecured business loans to consumers, assisting them to expand their business. Apart from banks and NBFC’s, various other lending institutions are providing short term unsecured business loans to consumers.
Although the criteria to apply for business loan differ from lender to lender, mostly the lending institutions consider the following factors before approving an unsecured business loan application.
Now that you are aware of the procedure of availing the business loan without security, you can download the Afinoz app and shop for the best lender to avail the loan at attractive interest rates. You can apply for the business loan with just a few clicks and submit only a few minimal documents, along with the loan application.
Financial institutions are considerate of the challenges in running a business and facilitate them in easy availability of business loans, without any collateral. SMEs and MSMEs can take the opportunity to augment their business by gaining easy access to business loans. With funds to give your business the required boost, you can give new wings to your dreams and leap to achieve your goals and objectives.