There is no collateral required when availing a business loan without security. The loan for business without security can be repaid over a flexible period of time, usually ranging from 6 months to 24 months. These business loans are usually offered by NBFCs and online lenders in India due to the amount of risk involved.
There are easy business loan without documents providers that you can avail a loan from. However, as against the many lenders claim to offer business loans without documents, there is no such type of loan product available in the market. Every loan lender in India would require some documents to check your identity, eligibility, and credibility.
So, it can be rather said that their business loan documents requirement can be minimal. And the minimal list of the document will limit to the identity proof, income proof, bank statement, ITR filed, and PAN card. Also, since you are availing a collateral-free loan, you are not required to submit the documents of the collateral.
There is a paper-less business loan without security available in the market. Here, you need not submit any hard copy of the documents. You can upload the soft copies of the documents on the lender’s website. Or on their mobile application if any. So, in all, a business loan without security and documents can be availed easily. Let’s now talk about its advantages.
Advantages of availing Business Loan without Security
The first advantage of availing a business loan without security is that there is no need for collateral. So, this loan product is ideal for small business owners in India. Its other biggest advantage is these type of business loans are offered at minimal documentation. Also, since loan for business without security in India are offered by NBFCs and online lenders, their eligibility criteria are also not very strict.
Also, the NBFC business loans are offered online making it easy for you to apply for a loan without visiting the lender’s office. The loan processing is very fast and if approved, the sanctioned amount is disbursed within a few days. All in all, the following are the benefits of availing a business loan in India without security:
- Minimal documentation
- Basic eligibility
- Fast processing
- Fast loan disbursement
- Online loan application
- No collateral requirement
- Flexible repayment tenure
- No prepayment charges
How to get a Business Loan without Security?
Getting a business loan without collateral security in India is easier done than said. You can just follow the following steps to avail a loan without security for business:
Search Lender: Since there are a number of loan lenders in India, you must first search for the right lender. The right lender for you can be the one whose eligibility criteria is basic that you can easily meet. Also, have a look at their CIBIL score requirement.
Apply for Loan: After deciding on the lender, apply for the loan. As conveyed earlier, you can apply for a loan online through the lender’s website or mobile application.
Documents: Upload the documents required by the lender. It is recommended to upload PDFs of the documents to make the loan processing process faster.
Approval: If everything seems good to the lender, the lender will approve your loan application. Or if everything is not up to the mark, he will disapprove the application. Either way, you will be informed about it via call, message, or an email.
Disbursal: The business loan without security will be disbursed into your bank account in the days mentioned by the loan lender.