What is Business Loans?
Business loans are unsecured financial assistance provided by banks and NBFCs in India. The primary aim of business loan is to support the urgent needs of your growing business.
Most financial institutions offer term loans and flexi loans to cater to the business needs of a company.
The amount available depends on the business’s credit history.
Unsecured loan used for a specific purpose, generally for capital expenditure. The lender disburses the approved fund in a lump sum amount.
Unsecured business loans are a great funding option for businesses that don’t have own assets, or for any company that’s growing fast and needs finance quickly.
Our proprietary platform matches your loan requirement with the right lender for your business in no time, speeding up the process when you apply for a BL online through credit enable.
How to Business Loans work?
One of the most common ways to raise capital for your business is to take a unsecured BL. A loan is also a better source of capital for a profitable business in comparison with the share capital as you can have a better leverage. You enjoy the surplus rate of return over the interest you pay for the borrowings.
Business loans have long been a viable way to keep operations going. BL used for many reasons, such as a short-term boost to cash flow or to cover the cost of pricey equipment. BL can also used to pursue growth and to consolidate high interest debt.
How Business Loan Calculated?
Business loan eligibility criteria consists of varied parameters including your CIBIL score, your tax payment record, bank balance, credit utilization ratio, and more.
Difference between secured & unsecured loans.
- You can avail unsecured BL without collaterals, once avail a secured loan you need to collateral an asset as security.
- Unsecured BL do not require collateral, they come at a slightly higher rate than secured business loan.
- Business loan approved without security faster than secured loan.
The tenure is fixed & Floating, between 1 to 5 years