Every business has a mission and vision to follow, but to achieve these you need to have an adequate capital to finance your business operations. Any loan that is given to existing businesses towards working capital, expansion activities or other unexpected business needs is a business loan.
Business loan fulfills your urgent requirement of working capital in business.
Types of Business Loan:Secured: This loan requires upfront collateral which reduces risk for the lender, allowing them provide a lower interest rate that can be paid back more easily by the borrower.
Unsecured: An unsecured business line of credit is a loan that is not backed by collateral. This is a precarious loan for the lender, but a low-risk one for the borrower. However, you should have a well-established business that is running profitably and each bank will have its own criteria to assess your eligibility.
- Maximum loan coverage of Rs. 1 Crore.
- Can be used for Working Capital and/or Term Loan.
- No collateral security/third party guarantee.
- With all documents ready, will have quick access to the funds.