Formal lenders offer many different types of business loan options for small businesses. An unsecured business loan is just one of your options, but it is one of the most popular loan options for small businesses that are still relatively young.
What is an unsecured business loan?
When you get a loan from a lender without giving them any security or collateral in exchange, it is called an unsecured loan. You can use an unsecured business loan to invest in inventory, fund your growth, finance your operations, etc.
Due to the lack of security required, lenders give small businesses unsecured business loans only for short loan tenors at a slightly higher interest rate compared to secured business loans. The size of an unsecured business loan will also be lesser than a secured business loan you could get if you owned collateral to give to the lender.
Why is an unsecured business loan right for my small business?
- If you do not own any (or much) collateral, this is a great option to get funding for your small business without putting up any collateral in exchange.
- If you’re a small business looking to grow your credit history, you can get a low ticket size unsecured business loan with a short loan tenor. You can pay the loan back quickly while improving your credit score and building your credit history at the same time. Paying your EMIs on time will also increase your creditworthiness with lenders and make you eligible for better loan terms in the future.
- The process to get unsecured business loans is relatively simple.
- Lenders can process an unsecured loan faster when compared to any other type of small business loan, as they don’t have to spend any time verifying and validating your collateral ownership and value.
- Lenders require less documentation for an unsecured loan compared to other types of small business funding.
Who is eligible to get an unsecured business loan?
To get an unsecured business loan with one of CreditEnable’s lender partners, you need to fulfil the following criteria:
- Have an Experian credit score of 750 or more.
- Be 25 years or older.
- Have a business vintage of 2 years or more.
- Have legal documentation to prove your business vintage (business documentation like a GST registration, MSME Udyam Registration, etc.)
- Have an annual business turnover of at least Rs. 10 Lakhs.
Why should I apply for an unsecured business loan with CreditEnable?
- CreditEnable partners with over 25 leading lenders in India, including ICICI Bank, Felxiloans, Kotak Mahindra Bank, Lendingkart, etc., to get our SME customers the right small business loan for their growth needs.
- Our service is 100% free to us for an SME customer and 100% digital. That means you can apply for business funding from anywhere, anytime, no matter where you’re located in India!
- Our process is simple. You register on our technology platform and fill out a short survey. We check your eligibility to see if you qualify for a small business loan with one of our 25+ lender partners by doing a soft pull of your Experian credit score.
- If your credit score is lower than 750 and you are not eligible for a business loan with one of our lender partners right now, we’ll tell you why and how you can improve your chances of getting the business loan you need in the future.
- If your credit score is 750 or above, we’ll ask you for your KYC and business documents. Based on the information you provide, our proprietary algorithms will match you with a specialised SME loan product offered by one of our lender partners that fulfils your needs.
- Once we have all your documents, we send your complete loan package to the lender you matched with, and we’ll support you throughout the loan underwriting process to ensure you get the small business loan you need to grow!
What loan terms does CreditEnable offer me?
- Our 25+ lender partners offer our SME customers unsecured business loans ranging from Rs. 1 Lakh – Rs. 75 Lakhs.
- Loan repayment periods range from 12 months – 36 months, and interest rates starting at 14%.
- The interest rates our lender partners will offer you depend on many factors, including your financial health, business vintage, sector, credit standing, credit history, etc.
- We’ve helped our SME customers get unsecured business loans in 2-3 days!
SMEs from Assam to Gujarat and Himachal Pradesh to Tamil Nadu have used CreditEnable to get the right small business loan to fund their growth! We can help you too!
Business Loans. Enabled Simply.