Skip to main content

Unsecured Business loans

UNSECURED BUSINESS LOAN | HOW TO APPLY | BASIC GUIDE

What is an Unsecured Business Loan?

An Unsecured Business Loan is a loan without any collateral/security that helps SMEs and startup companies raise debt for purposes such as expansion, project financing or equipment financing.

FEATURES
● √An Unsecured Business Loan does not require any collateral.
● Applicants looking to procure this type of small business funding should ideally have a high credit score.
● Generally, unsecured loans for businesses are taken in the form of a term loan repaid in EMIs.
● The maximum amount disbursed for an Unsecured Business Loan normally ranges between Rs. 15 lakh and Rs. 1 crore.

● Unsecured Business Loans for women
○ Banks offer an exclusive commercial loan scheme to empower women entrepreneurs in rural and urban India. This focused approach to commercial finance helps women entrepreneurs gain easier access to unsecured loans for businesses.

● Priority Sector Loans
○ Under RBI regulation, banks are required to dedicate a percentage of all business funding to the priority sector, which is mainly composed of rural businesses involved in agriculture.
○ Banks offer loans for specific inputs, technology and processes required in the agriculture business. For example, tractor loans are offered to farmers who require tractors for harvesting activities.
○ Unsecured small business loans for the priority sector generally has lower, more affordable interest rates.

BENEFITS
● Quick turnaround time
● Helps businesses grow and expand
● Easy application and documentation

UNSECURED BUSINESS LOAN INTEREST RATES AND TENOR
● Unsecured Business Loan interest rates in India usually range anywhere from 18%-22%. There is a higher perceived risk by banks so rates for Unsecured Business Loans tend to be higher than that of other types of loans.
● An Unsecured Business Loan in India typically has a tenor of 1 to 3 years.

UNSECURED BUSINESS LOANS ELIGIBILITY CRITERIA
● To be eligible for Unsecured Business Loans, an applicant must be representing any of the entities below:
○ Sole proprietorships
○ Partnerships
○ Private Limited Companies
 
Labels:

Comments

Post a Comment

Popular posts from this blog

How to convert Fb friends into page likes

This question has been asked way many times now! To start your fb page with 5k likes, you need two things, first is a pc with internet connection and second a Facebook I'd with 5000 friends/requests/followers. We'll be converting those 5000 fb friends into fb page likes. So let's start, for beginners I've also mentioned how to create a new page and second part is on how to migrate fb friends into page. How to create a Facebook page? 1. Log in Facebook and type url: https://www.facebook.com/pages/creation/ 2. The page will show you two options for page creations, A. Business or Brand; B. Community or public figure. choose any one option as per your requirement. IF YOU CHOOSE BUSINESS OR BRAND: 1. The page will show you two blank questions asking your business name and category. Fill them with your brand name and category as restaurant, media, publication etc. and click continue. 2. Next page will ask you to upload your profile and cover photo. You can choos...
2 comments
Read more

Building a Telegram community for your web3 project: 8 Best practices

  Building a Telegram community is a key aspect of launching and growing a web3 project. Telegram is one of the most popular instant messaging apps, and its channels and groups feature to allow for easy communication and information sharing among members. By creating a Telegram community for your web3 project, you can engage with your followers, share updates, and answer questions in real time. Here are some best practices for creating and managing a Telegram group for your web3 project: Define your goals and target audience: Before setting up your Telegram community, it’s important to have a clear understanding of your goals and target audience. This will help you determine the type of content you should be sharing and the tone you should adopt when communicating with your followers. Create a group and invite members: To create a Telegram group, you need to have a Telegram account. Once you have created your account, you can create a group by clicking on the “New Group” button and...
Post a Comment
Read more

Digital Marketing (part1): Instagram Ad posting tools

Instagram   About Instagram:  Instagram is an online and mobile social network for photo- and video-sharing with more than 500 million monthly active users worldwide. Users can share photos and videos publicly and privately on the Instagram app and through other social networking platforms such as Twitter, Tumblr or Facebook. Instagram started out with photos that were square shaped but now is open to pictures in any aspect ratio as well as videos with up to 60 seconds. For Advertisers, Instagram is a fantastic platform to tell a company’s story in a visual and engaging way. Successful campaigns do not sell products or advertise big discounts but bring a product’s or brand’s authentic heart and soul to life. Advertisers have to carefully balance the information and the inspiration value of their campaigns to encourage the community to like and share their ads.  Since Instagram was acquired by Facebook in 2012, the advertising platforms merged and most of the...
Post a Comment
Read more