1. What is the difference between Secured and Unsecured Funding?
The major difference in both is related to the collateral. An unsecured loan is a business loan with no collateral. 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 puts the lenders on the safer end of non-payment of the amount.
2. Why is CIBIL score important for Unsecured Business Funding?
CIBIL is the credit checking score of the borrower with the bank about 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 Debt?
The businesses or professionals (CA, Doctor, Architect etc.) 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 MSMEs 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 are unsecured business loan interest rates?
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 UBL?
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.
Gain valuable insights into the process of obtaining unsecured funding through a detailed case study.
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 UBL be available for Small Business Financing?
Yes. Even small business owners also get unsecured business funding.
11. Where can we apply for unsecured loans?
There are several 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 is the ideal platform that can provide you with opportunities for both debt and equity funding.
12. How to get an Unsecured Business Loan?
Since this is the modern time, many NBFCs and financial institutions receive applications through online mediums. It has made the unsecured business funding procedure cost a lesser amount of time. Check out the steps:
The first step is checking the eligibility criteria. If the business meets the unsecured business funding requirements and is eligible to obtain the loan.
Preparing the application is the next step. A well-written application with all the sufficient required details. That is including asset count, the company’s track record, etc. Why is this loan being obtained? Things like these have to mention in the application.
If you use an online medium, then the documents are uploaded online. Because presenting documents, softcopies or hardcopies is the third step to obtaining an unsecured business loan in India and overall.
Get fund. You can receive funds after the former step. Thus, now you are enabled to address the financial difficulties your firm is facing.
13. How does Terkar Capital helps?
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.
14. What are the types of services we provide in unsecured funding?
Here is the list of a few of our Unsecured Instruments:
- Loan under the CGTMSE scheme
- Working Capital Loan
- Trade Finance
- Factoring
- Bill Discounting
- LC Discounting
- Bank Guarantee
Check our unsecured debt products.
Recently, my cousin mentioned she’s working hard to start a company this year, but she hasn’t found the right financing option for her. That’s why I’ll share your article with her and suggest she looks at unsecured loans since they’re for businesses that don’t have any assets as collateral. I appreciate your tips on who’s able to apply for unsecured business loans.
Thank you, Eli, for sharing your cousin’s situation and for considering sharing the article on unsecured business loans with her. It’s great to hear that she is determined to start a company this year and I hope that the information on unsecured loans can be of assistance to her in finding the right financing option.
Unsecured loans can indeed be a viable option for businesses that don’t have any assets to use as collateral. It’s important to note that while unsecured loans may not require collateral, they usually come with higher interest rates compared to secured loans. Additionally, not all businesses may be eligible for unsecured loans, and it’s crucial to consider the criteria set by the lender, such as credit score, revenue, and time in business.
Unsecured business loans can be a lifesaver for small businesses, especially during tough times. The FAQ section in this blog post is very informative and answers some of the most common questions businesses may have about unsecured loans.”
Thank you for your positive feedback on our blog post about unsecured business loans. We are delighted to hear that you found our FAQ section informative and helpful in addressing some of the most common questions businesses may have about unsecured loans.
At Terkar Capital, we understand that small businesses often face financial challenges, especially during tough times. Our goal is to provide flexible and affordable financing solutions to help businesses overcome these challenges and achieve their financial goals.
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