- Unsecured Business loans are collateral free loans. Lenders who offer unsecured business loans wont require your business to pledge any collateral to obtain the loan. However, you must still meet the income and credit requirements.
- It is extended only on the basis of the borrowers financial position, creditworthiness, credit history, and general reputation.
- A good credit rating increases the chances of a corporate to avail of unsecured loans.
- They are generally taken in the form of a term loan
- Lenders who offer unsecured business loans wont require your business to pledge any collateral to obtain the loan.
- They are comparatively easier to obtain.
- They are an excellent option for buying machinery or expanding your business.
- Unsecured Business loans have a higher interest rate as compared to secured loans as banks associate a higher risk with it.
- The interest rates could be anywhere between 17% to 22%.
Proof of Identity
Proof of Address
- Electricity bill
- Telephone bill
- Latest property tax receipt
- Voter id card
- Company Pan card
- Proof Of Address - Registered
- Proof Of Address - Corporate
- Proof Of Address - Factory/Unit/Plant/Shop
In case of Company
- Articles of Association
- Memorandum of Association
- Certificate of Incorporation
In case of Partnership
- Certification of registration of firm with the registrar of firms and societies
In case of MSME unit
- Certificate of registration with District Industry centre (Compulsory for medium MSME)
In case of SSI unit
- SSI registration number/SIA SEK No.
- Last 3 years audit report & audited financials
- Cash flow statement
- Business Continuity proof - 3 years ITR
- Last 6 months bank statement
- Loan statement with sanction letter
- Promoters/Directors Net Worth Statement on company letterhead
- 3 year projections
- Shareholding pattern on Company letterhead
- Credit rating report - ( If credit rating is done)