InvestorQ : how to get a business loan with out security
vvsnarayana adapa made post

how to get a business loan with out security

Roshni Hegde answered.
2 years ago

Mostly loans with no collateral or security are provided by banks and NBFCs. Collateral-free loans are the type of loan where you do not require to pledge any asset as security. You can avail this type of loan for various purposes such as higher education, medical emergencies, marriage expenses, etc. However, due to the absence of security from the borrower's end, such loans are quite risky for a lender's perspective. The collateral-free loan is quite known for its minimal documentation that makes availing business loan pleasant for the borrower! Here are some factors that a borrower require to meet to avail a Collateral-free loan: Age - This is considered to be the most important factor among all. Most banks look for the borrowers with age group of 21 to 65 years.

Business Performance: Your overall performance of the business is checked and ensured by the lender before approval of the loan. If the business performance is weak and does not meet the standard stability the loan application is not accepted to get process.

Business existence: This again is one of the important factors that is considered by the business. Generally, lenders prefer borrowers with enough experience of at least 3- 5 years. This ensures them about the borrowers paying back ability.
Credit Score or Credit Rating: This factor represents a numerical presentaion of the creditworthiness for business loan. Needless to say, lenders always consider a strong score before approving a loan. Thus, a business with good annual turnoverare considered to get approved for the loan. Also, in this business and account books are taken int consideration.

You can avail this loan quite easliy through every public and private sector bank. I would name few banks that are known for their service; ICICI Bank, HDFC Bank, State Bank of India (SBI), Axis Bank, Kotak Mahindra Bank, Corporation Bank, Bank of Baroda, Punjab National Bank (PNB), Yes Bank, Syndicate Bank.
You can also choose NBFCs to apply for the loan; IIFL, Bajaj Finserv, Capital First, Lendingkart Finance, Indifi Finance.