Unsecured business loans are a type of financing in which the applicant is not required to provide any collateral to the bank or NBFC. These unsecured business loans are granted based on financial documents, credit rating, income, etc. from the applicant. Since no collateral is required, the risk factor remains high for the bank or NBFC.
Unsecured Business Loan Eligibility: What Is It?
The eligibility criteria vary from lender to lender and often depend on the profile of the applicant. Let us look at the different eligibility parameters.
• Age Eligibility: 18+ Years and above
• Eligible Entities: Individuals, Small and Medium Enterprises, MSMEs, Sole Proprietors, Corporations, Public and Private Corporations, Public Limited Liability Company, etc.
• Term of business: at least 1 year in business
• Annual revenue: min. Rs. 12 lakhs or more for existing businesses
• Credit rating: 700 or higher
• Citizenship: Indian citizen, with no default on any previous loan
• Additional criteria: applicant must own a home, office, or shop
How do I apply for an unsecured business loan?
To apply for a business loan, the applicant can check and compare different loan options tailored to the business requirements. Follow the instructions below to apply for a business loan by clicking “Business Loans” on the home page of the bank website.
Step 1: Fill in all the required fields such as the desired loan amount, employment status, gross or annual turnover, city of residence, number of years of current business, type of mortgage, and mobile phone number.
Step 2: Check the box below to agree to the terms and conditions. Click on “Unlock Best Deals”
Step 3: Also you must specify the type of company, nature of business, type of industry, gross annual income, bank account, any existing EMI, full name, gender, residence PIN, PAN card, date of birth, and email address.
Step 4: After providing all the details, a bank representative will contact you to carry out the procedure for obtaining a loan.
Step 5: Once your loan application is approved, within the specified business days, the approved loan amount will be transferred to your specified bank account.
Business loans can be available to individuals, business owners, start-ups, self-employed professionals, entrepreneurs, and MSMEs who wish to obtain additional capital to meet working capital requirements such as staff fees, debts, or any other expenses. However, there are several business loan selection criteria defined by the respective banks and NBFC that an applicant must be eligible for to successfully apply for a business loan.
Eligibility for a business loan depends on several factors, such as your CIBIL score, tax-paying behaviour, loan utilization rate, and ongoing source of income. To take advantage of a high-value business loan, it is important to have a good CIBIL score of 700 or higher as your credit rating plays an important role in unsecured business loan eligibility. It is important to pay taxes and EMI on time to get a high credit rating and cover your business expenses with a lot of income.
HeroFinCorp 