Since the last few years, start-ups have unlocked the key to success by breaking the stereotype myths of the business world. We have seen many start-ups growing rapidly and competing with their giant counterparts. Now the question arises, how did it happen? From where they have gotten their funds? The answer to all your queries is unsecured business loans for new businesses.
An unsecured business loan in the form of a working capital loan is simple to obtain. It assists new or small enterprises with their working capital needs. Depending on several factors, you may also avail of other forms of unsecured business loan. These loan forms come with various benefits and features. In this article, we will discuss the benefits along with eligibility criteria and documents required for an unsecured loan for start-ups.
Features and Benefits of Unsecured Business Loan for New Businesses-
• Flexibility- This type of loan comes with more flexibility as compared to any other loan forms. It helps start-ups to grow without worrying about the repayment tenure or EMI. Unsecured business loan for start-ups offers customers to choose a flexible loan repayment tenures as per their convenience.
• Collateral Free- Lenders sanction funding to new businesses based on the applicant’s profile. They usually consider the applicant’s income, creditworthiness, and business plan in order to approve the loan. As such, the customer is not required to put up his assets as security or collateral.
• Minimal Paperwork- You do not need many documents to get an unsecured business loan for new businesses. Only a few basic documents are required. Once the lender verifies the document, the sanctioned amount is credited to the customer’s account.
• Quick Disbursal- The loan process is simple and convenient. By following a few simple loan application steps, you can get an instant disbursal of your unsecured business loan.
Documents Required for Unsecured Business Loans for New Businesses-
• Identity Proof – PAN card, Passport, Voter ID card, Aadhar Card, or Driving License.
• Address Proof – Passport, Voter ID card, Aadhar Card, or Utility bills such as telephone bills or electricity bills.
• Proof of Age – A copy of a PAN card or passport can serve this purpose.
• Income Statement – Customers must prove that they have a stable income.
• Account Statements for the last six to twelve months depending upon the lender.
• Proof of signature verified by your bank.
• Two passport size photographs.
• Self-drafted business plan
• Income tax returns for the last two years.
• You should be an Indian citizen with an age between 21 to 65 years. However, this factor may vary from one lender to the next.
• Applicants must not have defaulted on any previous loans.
• Applicants should have a strong credit history.
If you want to establish a new business, you should think about your financial possibilities ahead of time. No matter when you apply for a business loan, you must have all of your documentation available. It will not only assist you in establishing your firm smoothly, but it will also assist you in obtaining an unsecured business loan for new businesses.
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