Hero FinCorp
Meet the simple Unsecured Business Loan eligibility to Quickly Seek Approval for Unsecured Loans
Earlier, it was quite challenging for the businesses, especially small and medium-sized to avail a loan in India. But today, the market trends have dramatically changed as now every business owner can tremendously benefit from the option of unsecured business loans. The major reason for the rising popularity of such loans is that they are offered without the need of mortgaging any asset. In addition, the uncomplicated unsecured business loan eligibility criteria and customer-friendly policies further ensure to align with the diverse requirements of the borrowers. Whether it is for the working capital or procurement of raw materials, the money raised through such loans can be used for countless number of business needs. However, since these loans are risky from the lender’s perspective, they are offered at a slightly higher rate of interest in comparison to what you get in secured forms of lending.
Do you meet the eligibility criteria for unsecured loans?
Although the eligibility criteria may differ from one lender to another, here are some common factors that you need to check in order to assess whether or not you are eligible for taking these loans.
• The age of applicant should be between 24 to 60 years while applying for the loan.
• The business for which the loan is required must be minimum 6 months old and should show signs of profitability.
• The credit score of the borrower should be 650 or above and he/she should have a flawless payment history.
• The applicant should be an Indian national with no criminal background.
• The applicant should have no previous loan defaults.
• Lastly, to meet the unsecured business loan eligibility, you must provide the documents such as duly filled application form, KYC documents, written business plans, bank statements and other important papers demanded by the lender.
Few noteworthy features of unsecured funding
• Paper-less business loan – Nowadays, you can find many of the lenders who have moved the entire application process online which allows you to submit all the forms and documents in the form of soft copies conveniently from your home. This way, the business owners do not have to leave their business operations and chase the lenders to apply for the loan.
• Flexible terms and conditions – Since the loans do not involve any collateral, they are offered at borrower-friendly terms and conditions. The borrower can choose the tenure and the EMI amount, and can even negotiate the interest rate to keep everything in his/her own favour.
• No fore-closure charges – While scouting the markets, you may come across quite a few lenders who do not charge any fee for pre-payment of the loan before its tenure after 3 EMIs.
• No restriction on usage – These loans can be used for any business activity as the lender does not interfere with how you use your funds. You are just required to make the timely repayments to avoid any action from the lender’s end.
Conclusion
Clearly, unsecured loans seem to be an ideal choice when it comes to supporting small funding requirements of the business. You just have to fulfil a basic set of unsecured business loan eligibility conditions in order to effortlessly qualify for the loan. However, before signing the agreement, thoroughly read all the clauses in order to make an informed decision and to avoid any regrets later on.
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by Hero FinCorp on 2021-04-30 04:44:34