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Getting a small business loan without security in Mumbai

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Tribe 3 offers the best unsecured business loans online in India, on transparent and competitive interest rates. Click to know more. – PowerPoint PPT presentation

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Title: Getting a small business loan without security in Mumbai


1
Getting a small business loan without security in
Mumbai
2
  • It is an exciting time to be an entrepreneur.
    Why? Indian banks, new-age financial
    institutions and NBFCs are making it easier to
    get quick business loans. Typically, there are
    two types of business loans in India available
    for a small business owner secured and unsecured
    business loans. There will be occasions when a
    business owner wants a loan without security.
    Unsecured business loans or loans without
    security do not require any collateral as they
    tend to be smaller. If you want to apply for a
    business loan in Mumbai, here are some things you
    should know.
  • Factors that influence an unsecured business loan
    application
  • Since finances are the backbone of any venture,
    financial institutions make it easy to
    get collateral free loans. Applicants usually are
    required to meet the following criteria, to get
    a business loan in Mumbai

3
  • The applicant must be between 23-65 years old.
  • The business should have been operational for a
    minimum of 1 year and tax returns should have
    been filed.
  • The applicant must have a good credit score.
  • The applicant must have a good business growth
    plan with revenue generation.
  • The applicant must have chalked out a clear
    repayment plan.
  • If the business meets the above conditions, the
    applicant needs to fill in an online business
    loan application form on the lending
    companys website or mobile application. A loan
    officer will consider the above factors before
    disbursing the required funds. Collateral free
    loans carry higher interest rates as the lenders
    risk is higher. The term for an unsecured loan is
    also shorter.

4
  • Other factors, which influence the business loan
    process
  • Stage If you are a new business, it may be more
    difficult to get a loan from a bank and in such
    cases, private business loans are an option to
    consider. If your business has been operating for
    1 or more years, it is easier to get that loan as
    there is a performance track record that can be
    considered, before a loan is offered.
  • Product/service competitiveness Lenders consider
    this aspect before they sign off on a business
    loan in Mumbai or any other location in India. If
    your company has been doing well in its niche or
    is on par with companies in a similar field, then
    unsecured loans are easier to come by.
  • Amount of business loan The amount requested
    plays a big role in the sanctioning, especially
    in the case of collateral free loans. Modest
    amounts are easier to get if your companys
    financials are strong. Before applying, you
    should run all the possible numbers and be very
    sure of your ability to repay.

5
  • Whom to approach It is always easier to approach
    an institution you have done business with in the
    past. Talk to your digital lending company or
    NBFC about getting a collateral free loan, as
    he/she is familiar with your business and its
    operations. Having a good credit score and a
    solid repayment history will facilitate
    getting business capital loans, when you need
    them most.
  • Essential tips to note
  • Find out more about the terms and conditions
    for unsecured business loans being offered by
    different institutions.
  • Eligibility criteria can vary for each
    institution, as well as the formalities required
    for easy small business loans.
  • Keep in mind that you will have to pay
    higher interest rates for unsecured business
    loans as compared to secured business loans.

6
  • Your credit scores (CIBIL) must be good to get
    a collateral free business loan.
  • There will be a service charge levied to get a
    loan.
  • Loan limits vary for each institution so do
    your homework and apply only for the amount that
    you need.
  • Loan processing usually takes 4 to 5 working
    days after the required documents have been
    submitted and reviewed by the lender.
  • Loan pre-payment is a good idea check out this
    option and the charges you will incur for early
    repayment of the loan.
  • Unsecured business loans are a great resource for
    the growth of a small business. While secured
    loans are essential to establish and keep a
    business running, short-term unsecured loans play
    an important role.  These loans are critical as
    they help a business to tide over difficult
    times.
  • Visit us https//www.tribe3.com/

7
  • Author BIO
  • Tribe 3 offers the best unsecured business
    loans online in India, on transparent and
    competitive interest rates. Click to know more.
  • Contact us 917666207768
  • Visit us http//www.webcogitate.com/
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