FAQs on How to get an unsecured business loan in India?
1. What is the difference between Secured and Unsecured Funding?
The major difference in both is related to the collateral. In an unsecured loan, there is the absence of collateral and the whole process depends upon the creditworthiness of the borrower. Here the ROI is high but the process is fast. Whereas in secured loans collateral-based loans are provided which makes the lenders on the safer end of non-payment of the amount.
2. Why is CIBIL score important for Unsecured Funding?
CIBIL is the credit checking score of the borrower with the bank pertaining to his repayment capacity. The good credit score of the borrower helps easy disbursement of the loan. Also, an unsecured loan provides finance without collateral hence, the CIBIL score is of utmost importance to check whether the borrower has a creditworthy relationship with the bank and the capacity to pay the loan in the mentioned period.
3. Who all can apply for unsecured loans?
The businesses or companies that do not have any assets as collateral can go for unsecured funding. The need for such a loan can be related to paying the dues, expansion, reconstruction, and many more. The Micro Small and Medium Enterprise can be more benefited by unsecured loans as the government has established many schemes for the same.
4. How much amount can be raised in unsecured funding?
There are no such fixed criteria upon the raising of finance of unsecured loans. Many lenders provide amounts up to 25 lakhs, it might go beyond that as per the requirement of the borrower.
5. What is the Rate of Interest on unsecured loans?
The RoI is of dynamic nature and hence changes according to the market segments. So there are no fixed criteria based on ROI. We at Terkar Capital, provide the best funding solutions and help borrowers arrange the cheapest cost of borrowing.
6. What is the maximum amount of unsecured loan can I get?
It is an unsecured loan, most financial institutions don’t take loan exposure of more than Rs. 50 lacs. However, the turnover and profitability of your business are a few of the major factors to decide the exposure taken by financial institutions.
7. How much time does it take to get the loan?
An unsecured loan is also known as a quick business loan. This is because the turnaround time to get the funds in your accounts will be as low as 7 working days. Within 7 working days, you will get your loan disbursed.
8. What is the tenure of the unsecured loan?
An unsecured loan is given for a maximum of 3 years. Your financials and future business can be a few of the factors which may help you to extend a further couple of months for the repayment.
9. How should I repay that loan?
An unsecured business loan is as good as any other loan. Here you can make the repayment in Equated Monthly Installment and can arrange through ECS.
10. Can Unsecured Business Loans be available for Small Business Financing?
Yes. Even small business owners also get an unsecured business loan.
11. Where can we apply for unsecured loans?
There are a number of Financial Institutions, NBFCs, and banks that work for providing unsecured loans in India. One has to have a proper direction to search for. Terkar Capital can be the proper platform for one to raise the finances from both debt and equity funding.
12. How Terkar Capital helps in Unsecured Loans?
Being one of the most modernized and highly specialized finance facilitators in India, we understand the requirement and the urgency of the funds for your business. Terkar Capital always tries harder to arrange the best financial services for all our customers and make the process convenient. Unsecured funding is one of our best services and our team of experts helps effortlessly to arrange all the possible outcomes to make the process hassle-free.
13. What are the types of services we provide in unsecured funding?
Following is the list of a few of our unsecured services
- Loan under CGTMSE scheme
- Working Capital Loan
- Trade Finance
- Bill Discounting
- LC Discounting
- Bank Guarantee
The process to avail of unsecured business loan
To get even more clarity:
Let’s understand unsecured business loan from the case study.