Avail Loan Without Security For Small Businesses In India

MSMEs that meet the following criteria are eligible for loan without security'

Eligibility For Business Loan Without Security

  • Minimum operational history of 2 years
  • 2 years ITR for >10 lacs
  • VAT returns for the last 12 months

Documents For Business Loan Without Security

  • Business Registration Proof
  • KYC documents of the applicant and the organisation
  • Bank statement for the last 6 months
  • Pan Card of the promoter
  • Aadhaar Card of the promoter

Get upto 50 lacs in under 24 hours.

We work with specific segments and use our understanding to make loan better

Quick & Simple

Minimum documentation. No collaterals

Multiple Lenders

One application. Multiple lenders. Increased chances of loan approval

Best Fit

Specific loan products. For specific business needs

Flexible & Transparent

Choice of loan tenure & repayment modes. No hidden charges

About Business Loans Without Security In India

With the advent of the current century, several things have changed in the business world. In the last decade, however, things have taken a major turn towards a more entrepreneurial approach. The last five or six years- specifically- have seen exceptional growth in business. There are a number of factors behind this. Before we talk about a loan and how that is easy to avail, we should know why they have gained popular ground. And that is because the surge in businesses has been mindblowing.

Reasons Why You Need Business Loan Without Security:

  • While at first, businesses used to be the work of the Western people, especially so in India, it began changing a little after Independence. Of course, there have been several notable businessmen before 1947 too, but it is only after this period that people started taking businesses seriously.

  • Running a successful business does not necessarily require higher education. Basic education that teaches arithmetic and languages is enough to help a person hone their skills. Of course, higher education will mean a better understanding of the business. However, in a developing country like India, most people who cannot afford the same, and hence remain out of the service-goers loop, resort to business.

  • The availability of loans without security is a big advantage for businesses. This we will discuss in the next segment.

    The youth of the country has realised that there is more money in running a business than in securing a job. This has played a pivotal role in shaping the mindset of the younger generations.

  • Now that we have explored the reasons behind the rise in businesses, we will take a look at loans granted without any security.

Loans Without Security - A Comprehensive Overview

When we talk about SME unsecured loans, we generally mean to say 'unsecured business loans'. If you were wondering why we said so many things about business previously, here you will explore the reasons. When it comes to startups or small businesses or maybe even the businesses of medium scales, we talk about these loans.Small or medium-scale businesses, as do some startups, find it challenging to invest the amount of money required to start or maintain the business.

These businessmen often do not have the money to produce collateral. In this scenario, had the unsecured small business loans not existed, it would have been quite difficult for these people to sustain. In that light, these loans provide many benefits to this genre of entrepreneurs.

Why Go For A Loan That Requires No Security?

If the previous bit was not convincing enough, this surely would be. These two points play significant roles in the life of a businessman.

  • Say goodbye to hefty collaterals: When it comes to collaterals, all businessmen shudder. And the reasons are valid. Often, these collaterals require the said businessmen to leave more money in the custody of the lending party, than she is aiming to borrow. Added to this is the hefty interest that keeps accumulating. This is not possible for many small businesses. This is when business loans without security come into play. These loans do not require you to provide large amounts of collaterals, and hence they make running the business much easier.

  • No frowning about meeting the loan criteria: Loans often have a list of criteria that you have to meet before the bank actually sanctions the loan. In that case, it can get really cumbersome and uncertain. And for a small business, a lot depends on acquiring the loan amount. However, in cases of unsecured loans, the criteria are minimal. They are easy to meet and do not cause unnecessary hassles.

Where Can You Get Loan Without Security?

  • Banks: These loans are available from the banks. Both private and public sector banks are known to sanction these loans. You can also go to their respective websites to avail the unsecured business loan online.

  • Non-Banking Financial Companies or NBFCs: Non-banking financial companies or NBFCs are the ones which are not banks but lend out money, nonetheless. These companies often do so without taking any security deposits. Hence, they are quite popular among small businesses.

Conclusion

Loans for small businesses without security are the ones that help the businesses the most. Most small businesses sustain because of such loans. Of course, the rate of interest remains higher than normal, but that is ultimately better than spending more than what is required on loans that require Collaterals. Hence, the popularity of unsecured loans.

Frequently Asked Questions

WHY DO SMALL BUSINESSES USE INDIFI?

When asked, most small businesses in India shared that access to loans without security is the biggest roadblock to growth plans. Indifi ensures that the right loan is available at the time of need. By matching the profiles with multiple lenders including banks and NBFC improve the chances of getting a loan. With us, hiring new employees, purchasing more inventory, taking more orders, upgrading equipment and boosting their marketing efforts is possible like never before.

HOW DO I APPLY FOR A LOAN?

Applying is quick and easy and typically takes less than 10 minutes. We ask for basic information about you and your business. Securely connect your bank information so we can assess your business without long forms, waiting in line or having to dig up old paperwork. Your association with business services who we have partnered with helps you get more fitting loans.

WHAT DOCUMENTS ARE REQUIRED TO AVAIL A LOAN?

We need your

  1. Pan Card
  2. Aadhaar Card
  3. Address proof of self and firm
  4. Business registration proof
  5. Bank Statement last 6 months.
    In case of loan >10 lacs, ITR and VAT returns

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