Nowadays, you will be able to find couple of options in order to avail a business loan and many other MSME loan schemes as well. But all business loans have their own criteria. You just have to collect all the information about the loan before you apply for it. Unsecured business loanare the ones that do not provide any security. Normally when you apply for a business loan you have to give collateral to gain the MSME loan. You have to know that the interest rate on the unsecured business loan is higher compared to other business loans.
Following are some reasons which will explain why unsecured business loans are good for your business. You also will be provided with the MSME loans apply details.
No collateral required:
This is one of the popular features of an unsecured loan. You don’t have to provide any collateral or security when you take credit from any financial institute. This feature will give benefits to start-up business that usually doesn’t have anything to give against credit.
Easy application process:
There are a few easy steps to apply for these loans. You can read guidelines that mentions about all the detailed steps of how to apply for business loans. They also give you the detailed information about the business loan interest rate.
Very interestingly, when you are applying for an unsecured business loan, you will realize the need of very minimal documentation, which is one of the great reasons why you should apply for an MSME loan. You just have to submit the scanned copies of the identity proof, a canceled cheque, address proof, etc.
Smooth disbursement of loan:
When you apply for the unsecured business loan online then you will get the OTP on the registered number within a few minutes. Nowadays you don’t have to wait for long to get the funds in your bank account directly.
No Foreclosure Charges:
Some of the leading NBFCs like Ziploan do not even levy penalty on pre-payment of the unsecured business loan before its tenure after 3 EMIs (excluding pre-EMI).
Easy repayment options:
Some of the unsecuredMSME loan ranges from INR 1-7.5 Lakhs and it be repaid in easy monthly instalments from 12-24 months.
- Are unsecured loans great for a start-up business?
Yes, unsecured business loan is specially launched mainly for the start-up businesses.
- How to apply for an unsecured business loan?
You need to visit the official website of the NBFCs like Ziploan and apply for an unsecured loan by uploading all the required documents.
- At what time you will get the approval for a business loan?
Once you apply for the unsecured business loan on the official website of the lending institution, you will get approval for your loan within 3 working days.
- What are the eligibility criteria to apply for this business loan?
Your business has to be India based. You should be in the age group 22 to 55. You also have to have a business vintage of 3 years. MSME loan eligibility criteria are somewhat easy compared to other business loans.