India is a breeding ground of culture, religion, and frugal innovation. Put in a population of over one billion citizens to the mix—it becomes electrifying geography of companies that want to create scalable and marvellous business models. All you need is a little push, which ZipLoan is providing through their unsecured business loans to jump-start your business. Now, you might be wondering what an unsecured business loan is.
A borrower often takes an unsecured business loan to maintain or expand an existing business without any collateral, which means the borrower need not pledge any of his property or assets. It’s a perfect place to explain the meaning of working capital loans; these loans are taken to fund a company’s everyday operations that consist of expenses, such as rent of the company, salary of the employees, and debt. Sometimes companies do not have sufficient funds or assets to pay off their functional costs, and that’s where small business short-term working capital loan comes in handy.
These days’ lenders are more flexible in providing working capital loans in India to small businesses. However, only the most deserving business owners are considered eligible for the loan, and they also have to give some collateral to get the loan. The requirements for such loans create a challenge for businesses on a small scale who don’t want to keep their assets at risk. That’s where the loan lenders come in the picture providing fast working capital loans without any collateral.
It’s easy to get an unsecured loan as there is less preparation needed, but still, there are some vital steps on how to get an unsecured business loan in India:
Keep a Check on your Future Cash Flow Predictions
Before applying for a loan, calculate your cash flow projections to make sure you have sufficient funds to pay off your loan. Eligibility criteria to apply for a working capital loan includes two years of business vintage, the previous year’s sales to be at least Rs. 5 lakhs, last year’s ITR to be at least Rs. 1.5 lakhs and the business owner should either own his house or business premises.
Your credit score will get affected if you fail to repay your loan; this will create hurdles in getting any type of working capital loan in the future.
Maintain a good Credit Score
To get a low interest on the working capital loan, you need to maintain a good credit score. This is a common situation for SMEs as the lack of funding makes it difficult for them to get such loans. To raise your credit score, all you need to do is decrease your credit utilisation ratio. It reflects the total debt that you currently have concerning the sum of your available credit.
ZipLoan offers the loan tenure of 12 months, 18 months, and 24 months. A borrower can choose any as per his pocket, working capital loan rates are also very reasonable. The whole process of getting the loan is quite simple and easy for the borrower to follow up.
Have a strong business plan
If you already haven’t developed a business plan to apply for unsecured business loans, which includes detailed financial statements, cash flow projections, the purpose of your business, a growth strategy, how will your business generate money and reason for the loan, worry not! Minimal documentation is required to process the loan application.
The documents required for working capital loan include PAN card, business and house address proof, last two years’ ITR, and bank statement for nine months. These are the only documents required for the working capital loan.
Research Lenders
With ZipLoan’s unsecured business loans of an amount ranging from Rs. 1 lakh to Rs. 5 lakhs, you can also apply for a working capital loan online. An instant working capital loan that is also known as the short-term working capital loan is guaranteed.
- Different types of Loans: Our primary product is a business loan that can be used for many purposes, ranging from buying machinery to increase working capital. Thus, you can also apply for machinery loan, working capital loans (which are also known as loans that are used to provide the working capital that covers a company’s short-term functioning needs), capital loan, and term loan with us.
- Qualification: A lot of lenders will look into your business revenue and credit score, but the level of requirements also varies.
How to get a working capital loan?
You’ll be surprised to know how easy it is to get a working capital loan. We process the loan application and disburse the loan amount in just three days, given the borrower fills the loan application and provides all the required documents in one go.
SME working capital loan Interest Rate
The Interest rate charged for SME loan depends on different conditions like the term of the loan, prerequisite of collateral, and loan amount. Now, you can also apply for a working capital loan online.
Advantages of Unsecured Business Loans
- No need for any Collateral: The most important attribute of the unsecured business loan is that it does not require any security or collateral. This characteristic makes it ideal for businesses that are small and do not have substantial assets.
- Easy Process of the Loan: The unsecured Business loan has a straightforward loan application process. You can even apply for it online from the comfort of your home, either through the lender’s website or through an online lending policy.
- Elasticity: No-collateral business loans are motorised by the flexible loan aspect. This exclusive characteristic enables businesses to have a loan according to their requirements and payback as per their cash flow.
- Minor paperwork: Nominal credentials are required to make the whole procedure of acquiring unsecured business loans a hassle-free job.
- Faster Disbursal: As the eligibility criteria are comparatively easy and relaxed for the unsecured business loans, an SME owner can secure such type of loan in a fairly short time. Usually, you’ll plan to take an unsecured business loan when your need is urgent, the fast disbursal of loan assures that your business will get quick solutions to carry on with its functions.
It is safe to say that ZipLoan is the definition of easy unsecured business loans. So what are you waiting for, do pay a visit, and grab the easiest best-unsecured business loans here!