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Loan for Business without Security - No Collateral, Quick Access
Most young businesses are in dire need of funds to grow their business and meet everyday expenses. Business loans are a great solution to meet these needs. However, business loans are of two types- secured and unsecured. In secured business loans, borrowers need to pledge security whereas, in unsecured business loans, there is no collateral involved. Most banks seek collateral to secure themselves in the case of default and non-repayment of loan amount by the borrower. However, banks offer unsecured business loans too but the rate of interest charged on them is higher in comparison to the secured loans.
What are Loans for Business without Security?
A business loan which doesn’t require any collateral as security is called Unsecured Business Loan or a Business Loan without Security. These loans are given by banks and some NBFCs.
Businesses need an extra dose of cash always. This cash can be used for buying machinery, raw materials or for meeting everyday expenses or paying salaries to staff. And at an early stage, businesses usually do not have or don’t want to put any property as collateral in the bank. Banks in return charge a higher rate of interest to counter the risk involved. Unsecured business loans are a great bet for expanding and growing business.
Things to consider while opting for Business Loan without collateral security are:
Before opting for an unsecured business loan, consider the following:
- Get yourself abreast with all the clauses and terms and conditions of the loan before signing the loan contract.
- Don’t take a hasty decision and consider the rate of interest offered to you by the bank. Try to negotiate to grab the best offer.
- Also, check for other charges like foreclosure fee or penalties.
Before making the final plunge, do proper research so that you choose the best deal. Compare different lenders on LoansJagat and choose the one which meets your needs.
Types of Business Loan
Business Loan for Entrepreneurs
Starting a business, want to scale fast and acquire customers but don’t have any funds? Apply for a business loan now.
Business Loan for Working Capital
Apply for a loan and increase your working capital. Double your business’s productivity, output, and profits.
Business Loan for Expansion
Want to open 1 more warehouse, factory, or franchise? Think of business expansion and don’t worry about funds.
Business Loan for Debt Consolidation
Multiple businesses, multiple loans, and multiple EMIs? You can repay all your loans with just 1 EMI/month.
Business Loan for Overdraft Needs
Apply for an overdraft EMI-free loan even if you have 0 balance in your bank account. This will be your emergency fund, and you have to pay just interest on the used loan amount.
Business Loans Against Property
You can avail of business loans up to ₹2 crores if you plan to keep your property as collateral with the lending bank.
Business Loan for Cash Credit
If you have a good credit history and a financially stable business, then why not expand it? Apply for a short-term cash credit loan now.
Business Loans without Collateral
A business loan without any physical security? Yes, it’s possible with LoansJagat. What are you waiting for? Apply now!
Business Loan for Projects
You can apply for a business loan if you plan to upgrade your infrastructure, manufacturing, and machinery.
Business Loans for Startups
Do you have an idea for your new business but no capital? Then apply for a business loan if you have a startup.
Business Loans for MSEs
If you own a small business and plan to expand it, then you can apply for an MSE business loan.
Features & Benefits
Eligibility
Who can apply:
- Minimum 2 years business existence
- Credit score - 700 or above
One ownership is mandatory
( residence or office)
Age:
- Above 21 years and below 65 years
Required Documents
Identity Proof
- Passport
- Voter ID
- Driving License
- Aadhar Card (Mandatory)
- Pan card (Mandatory)
Any of the following
Address Proof
- Passport
- Utility Bill
- Aadhar Card
- Driving License
Any of the following
Other Docs
- Current account bank statement (Last 1 year)
- Income tax returns ( Last 2 years)
- Proof of office address
- Proof of business existence
- GST registration certificate
- Proof of residence or office ownership
Calculator
Calculate your Loan EMI in 3 easy steps. Use the slider to set your loan amount, interest rate and tenure to understand your loan summary
Loan Summary
Loan Amount
₹ 100,000
Interest Payable
₹ 17,397
Monthly EMI
₹ 1,957
How to Apply
At LoansJagat, we provide ideal loan for business without security easily and effectively without having a tough process of application. The aim is to offer an untroubled process so that no one has to wait for their dream to become a reality. Apply for a loan today!
- Scroll Up. Fill in your business details. For example, your email, company name, and DOB.
- Fill in your business details. For example, your email, company name, and DOB.
- Mention your credit score, PAN number, and salary-related information.
- Compare the offers from 20+ banks and NBFCs before applying for loans.
- Organise all the documents, like the Aadhaar Card, PAN Card, residential proof, KYC details, and past 3 months' bank account statement. Submit these documents when needed, all digitally.
- After successful document verification, your loan will be approved and money will be credited to your bank account within 24 hours.
Tips to Avoid Loan Rejection
The required recommendation assists in enhancing the chances of loan approval to abstain from the rejection possibility of loan for business without security.
1. CIBIL Score Above 700
You have a high chance of loan approval if your CIBIL score is more than 700. So, try to increase your credit score to match this number.
2. Lower Debt-To-Income Ratio
If your business heavily depends on your credit card, even after utilising the monthly profit, the chances of loan approval are low.
3. Clear Existing Debts
If your business heavily depends on your credit card, even after utilising the monthly profit, the chances of loan approval are low.
4. Provide Verified Information
Don’t lie about your information over the tele-verification process. If found not true with supporting documents, the chances of rejection increase.
5. Stable Business
Make sure that you have a profitable business for more than 1 year. If you have a history of flop businesses, then banks might hesitate to lend you a loan.
6. Credit Report of Last 6 Months
When you are planning to apply for a loan, make sure that your credit history of the last 6 months is up to the mark.
7. Timely EMI Repayments
If you pay your loan EMI on the due date/month. Then your credit score will boost instantly. This will guarantee instant loan approval.
8. Don’t Engage in Paid Fantasy Gaming Apps
Avoid getting addicted to betting on paid fantasy gaming apps like Dream 11, Ludo, Poker, etc. Remember, there is no shortcut to long-term wealth.
9. Clean Business Bank Account Statement
Do not engage in external transactions on major stockbroking platforms. Try to keep a clean transaction history of your business bank account.
10. Multiple F&O Transactions in the Stock Market
Investing in derivative products like Future and Options (F&O) trading is a very risky scenario if you are planning to avoid loan rejection.
11. Average Bank Balance
If you can retain 25% of the profit generated from monthly sales as savings in your bank account, then banks will prefer to approve your loan application.