Free Articles  >>  Business And Finance >>  Page 5  >> 

Collateral Free Business Loan

Do you want to learn about a collateral free business loan?
Are you looking for such loans?
If yes, then you are in the right place. In this article, we will brief you about the collateral free business loans. Read on to know more.

Initially, you need to understand what does the term collateral means. In terms of banking, collateral refers to an asset or resource against which you can borrow some loan, capital or money. In case, if you do not repay the borrowed amount to the lender, the lender takes the custody of the collateral asset or resource. For example, if you borrow capital against your property and does not repay the amount on time, then the lender will take the possession of your house.

Now, let us discuss collateral-free business loan. Generally, a collateral free loan is referred to as an unsecured loan. In this type of loan, you are not required to offer any kind of resource or asset to the lender against the borrowed capital. Hence, such types of loans are very risky for the lenders and also have a high rate of interest as compared to other secured or collateral loans.

The collateral free loans are the fastest way of getting funds for your organisation, business, or individual purpose. It is not limited to financing business requirements for an organisation only, but it also provides support in case of personal requirements as well such as, meeting the medical expenses, buying property, purchasing a car and many others. The loan taken for personal purpose comes under personal loans.

The financial companies provide collateral loan after analyzing your credit history and net worth. They consider multiple factors while providing funds such as credit history, age, and the source of income, total income per month, job history, job stability, and many other factors. If all the factors are considered well and good, the financial companies agreed to provide different financial services to the client such as bank credit card, and investment services.

Now, let us discuss some of the main features of collateral free business loans which are as follows:
•It provides flexible tenure ranging from 12 months to 60 months.
•It provides different payment options such as Auto-debit, Electronic Clearance
Service (ECS) and Post Dated Cheque (PDC).
•It does not ask for security assets or resources.
•It provides faster processing of funds.
•It requires minimum documentation.
•It provides loans up to Rs.1. crore for Micro, Small and Medium Enterprises (MSEs) as per the terms of the MSMED Act, 2006.
•It provides loans for both existing and new MSEs.

Some of the BASIC REQUIREMENTS to avail such collateral free loans are as follows:
•Only those private limited companies which have an SME/SSI registration certificate can apply for a collateral free loan.
•In the case of MSMEs or SMEs, the collateral free loan can be taken for purposes such as product development expenses, procurement of computers and tools machinery.
•The clients are required to share the allotment proof at the time of application.
•The clients are also required to share the purchase agreement at the time of application.

About Author Vaibhav Mishra :

Vaibhav Mishra##lt
gt##Co-Founder, CEO & COO##lt
gt##Vaibhav is Co-founder of MudraCircle who brings in 18 years of strong mix of passion and deep knowledge of the knowledge of the SME Lending, Retail Branch Banking, Wealth management and##lt
gt##Insurance space

Article Source:
Article Url:

Article Added on Saturday, May 18, 2019
Other Articles by Vaibhav Mishra

Opportunity for SME Business Loan
Are you looking for a business loan for SMEs? Do you want to know how to apply for a business loan? If yes, then you are in the right place. In this article, you will come to know about opportunities for SME business loan. Initially, let us understand about business loans. A business loan can be defined as the loan or fund provided to the enterprises or organisations by different finance companies in order to fulfill all the requirements of the business operations. Such funds help...

Online Application for Business Loan at MudraCircle
One of the most basic requirements of any business is money because it helps in the financial management of the organisation and meeting all the requirements of the business. Business loans are the most common and popular method of arranging capital for your organisation. You are required to choose the best source of finance among all the financial companies. MudraCircle is one of the most comprehensive loaning collection marketplaces in India. It is located in Gundecha Enclave, Khairani Rd,...

Publishers / Webmasters
Article ID: 494161
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

162 Users Online!!
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

cPanel Hosting Provided By AwareIndia

Company IDS