There are many SME loans without collateral providers in Noida. SME loans are the loan products specially designed to cater to the financial needs of the SMEs in India. SME loans are of two types, with collateral and without collateral. To avail a collateral loan, you have to pledge an asset. And to avail a collateral-free loan, there is no such need. Since not all small business owners are in a position to pledge an asset, they find the SME loans without collateral the best option for them.
Now let’s talk about the guide to SME loans in India:
Table of Contents
Firstly, you should know the purpose of the business loan. You should know the purpose why you are availing the loan and then only be able to fulfill your requirements with the loan. The type of need will also help in choosing the right types of SME loans without collateral. If there is a need for expansion of the business, a capital loan can be availed. If the need is to buy updated machinery, a machinery loan or equipment loan can be availed.
It is important to check the eligibility before availing a loan for business. If you are not eligible according to the lender’s eligibility criteria, your application will be rejected. And every rejected loan application impacts negatively on the CIBIL score. The eligibility criteria are different for every lending institution. But there are some basic criteria that every one of them considers, such as CIBIL score, business vintage, business turnover, bank statement, ITR, and sales.
Collateral is an asset that is required to back the SME loan amount. If you are availing an SME loan with collateral, you will have to provide security. However, if you are availing an SME loan without collateral, you don’t have to provide security. There are many SME loans without collateral providers in Noida that offer these types of SME loans. You can apply with them and avail the credit facility.
The interest rate is the first factor often considered by most borrowers. The rates of interest on SME loans without collateral are generally low. It will not affect the growth of your business and only help in business expansion. Notably, the interest rates are different for every lender and you need to perform research and choose the one that offers the loans at the most competitive interest rates.
The processing fee is charged when the loan is sanctioned. Usually, this amount is deducted from the sanctioned loan amount before crediting it to your account. There are several other charges as well, such as file charges, prepayment charges, etc. You must ask the lender about all these charges and penalty before applying for a loan with him.
Now that you know about the SME loans without collateral in Noida and the guide for it, you make a smart choice for your business. You can avail an SME loan without collateral from ZipLoan at minimal documentation, no prepayment charges, and best interest rates in the market. Also, you can register your business and products and services on the Connect App by ZipLoan for free to directly sell and buy products online. The e-marketplace also lets you connect with more than 60k businesses and increase your business network. You can also discover new business opportunities through the App.