Do you wish to expand your business operations, invest in infrastructure, buy new equipment or manage your working capital needs? If yes, you might be looking for different financial options to support you in fulfilling your business dreams. This is when a business loan acts as a reliable source of finance and a great solution to take care of your various financial needs.

But, in the past years, the inability of providing collateral and stringent loan procedures have proved to be a big hindrance for small and medium enterprises seeking business loans. However, with the advent of fintech companies and their innovative and customized loan products like a collateral free business loan, getting loans has become much easier and viable.

So, here we thought of highlighting some important aspects of this trending variant of business loan known as a collateral free loan. You will also get to know the meaning and process of getting a collateral free loan.

What is a Collateral Free Loan?

A collateral free loan refers to the loan that is granted without any supporting security. This simply means that you don’t have to pledge your business or personal assets to secure the loan. Hence, no collateral shall be required to qualify for financing and you can have instant access to requisite amount of funds when required.

Features and Benefits of a Collateral Free Business Loan:

• Avail high loan amount of up to Rs.30 lakh
• Enjoy attractive and affordable interest rates
• Get flexible and easy repayment options
• Money in bank in 24 hours
• Minimal documentation to speed up the entire loan approval process.
• Loans are available for a diversified range of businesses and purposes.
• Online account access
• Flexi loan facility where you are charged interest only on the amount utilised and not on the entire approved loan amount.
• Flexi-interest only loan variant gives you the option to pay only the interest as EMI and the principal at the end of the tenor. This further brings down your loan EMI.

Procedure for availing a Collateral Free Business Loan online:

Let’s look at the online loan application procedure with the help of a relevant example:

1. Visit the bank website:

Visit the bank or NBFC’s website from where you wish to obtain a business loan. e.g. If you are looking to apply for a collateral free business loan from Bajaj Finserv, you can do that by following the effortless process given below.

2. Choose the type of loan:

Select the product you wish to apply for. Here we are talking about business loans. So, we choose the business loans option and click on the Apply Now button.

3. Fill the online application form:

Following personal details need to be submitted while applying for a collateral free loan:

• Name, date of birth, PAN Card number, contact details, e-mail address etc.
• Nature of business and the business vintage needs to be clearly mentioned.

4. Know your pre-approved offer:

Once you submit your form, you shall get a call from the concerned executive. Learn about the pre-approved loan offer that you are eligible for based on the information that you have provided.

5. Submit the necessary documents:

Adhere to the KYC norms and submit all the essential documents to the lender like bank statements, company financials, IT return and audited turnover for previous year.

6. Receive the funds in your account within 24 hours:

Get the loan amount credited to your account within 24 hours. Start using the money instantly to optimize your cash flows and fund your other business expenses.

Just few basic steps to follow and you are done with the process of availing the requisite amount of a collateral free business loan.

Collateral Free Business Loans: A Final Take

Collateral free business loans seem to be a convenient and effective way to meet your short-term and long-term business requirements. Further, lesser documentation and faster processing being offered through various online platforms has made these loans quite popular in India.

You can easily tackle the monetary requirements of your growing business with the help of these instant collateral free business loans.

Go ahead! Take full advantage of the growth opportunities knocking at your door. Manage your business demands through collateral free flexi business loans and grow your business in your own dynamic way!

What do you think about this emerging concept of Collateral free business loans? Have you applied for a business loan or thinking to get one to cater to your business demands? Don’t forget to share your valuable experiences and feedback on the type of business loan you use and the overall benefits you enjoy through it.