Unsecured Business Loan
An unsecured business loan is a funding solution offered to a business client. It does not require him to provide any personal or business assets as collateral. However, these loans require the borrower to show the lender a good credit rating, with excellent financial history and cash flow forecast. The finance house takes more of the risk involved in granting the loan and therefore, demands a higher interest rate.
With an unsecured business loan, the lender doesn’t have to evaluate collateral, and can instead focus on other factors, such as the business’s credit report and monthly sales. This streamlined application process often results in funds being distributed faster.
Who can avail this loan
Entities, self-employed non-professionals, and self-employed professionals can apply for a Business Loan, after fulfilling the required eligibility criteria.
No security or collateral is required to avail this loan
Minimum vintage of years is required to avail UBL. 2 years of audited financials will be required to assess the credit health of the company.
Different financers offer different products for the unsecured loan. The loan amounts can even go up to 75 lacs basis the financials and credit rating of the business.
There are many different factors that affect how much you can get approved for when applying for a business loan, and each provider has their own process for determining eligibility.The lender will consider various factors to find out how much your business is eligible for.Your business’s security (e.g. invoices or machinery) and profits are factored in too, and if you’re looking to borrow a significant percentage of your turnover, lenders will want to see that borrowing money now will mean you generate more cash in the future.
No, the rate for UBL is higher than that of LAP. Reason being, that UBL is an unsecured loan where no property or any other asset is required to be mortgaged.
Whether your business is at an initial stage or in the growth phase, additional finance can help you keep up the momentum. You can avail a business loan from Bajaj Finserv for your short or long term financial needs, to avoid any type of working capital shortfall.
YES, you can. However, a prepayment charges would be applicable. The rate may vary from one financer to the other.