Business loans offer many benefits, such as no collateral, fast approval, flexible repayment, competitive interest rates, and no restriction on the use of funds.
Securing a business loan is crucial for maintaining the seamless operation of a business. Ensuring the continuous flow of day-to-day operations requires the timely infusion of the right amount of funds. When considering business loans, two options are available: secured and unsecured business loan . In the case of a secured loan, pledging a valuable asset such as property, equipment, or savings as collateral is mandatory. However, with an unsecured loan, there is no requirement to put an asset on the line.
Opting for an unsecured business loan presents a strategic choice to fulfil your business requirements. Curious about why you should opt for an unsecured business loan? Read to learn the key reasons why it is the perfect choice for your business.
1. Quick and easy approval: Another advantage of unsecured business loans is that they are faster and easier to obtain than secured loans. Since there is no collateral involved, the lender does not have to evaluate the value and condition of your assets, which can take a lot of time and paperwork. Instead, the lender only checks your credit score, financial statements, bank statements, and business plan to determine your eligibility and loan amount. This reduces the processing time and documentation required for the loan approval. With Bajaj Finance, you can get an unsecured business loan of up to Rs. 55 lakh in just 48 hours*.
2. Flexible and convenient repayment: Unsecured business loans also offer more flexibility and convenience in terms of repayment than secured loans. With Bajaj Finance, you can choose a loan tenure that suits your cash flow and repayment capacity, ranging from 12 months to 96 months. You can also opt for the Flexi Loan facility, which allows you to withdraw funds as per your needs and pay interest only on the amount used. You can also prepay a part of your loan without any extra charges with the Flexi Term Loan and Flexi Hybrid Loan. These features help you to manage your cash flow better and save on interest costs.
3. No risk of losing assets: One of the biggest benefits of unsecured business loans is that they do not put your assets at risk. If you default on a secured loan, the lender can seize and sell your collateral to recover the loan amount. However, with an unsecured loan, you do not have to worry about losing your valuable assets in case of non-payment. Of course, this does not mean that you can default on an unsecured loan without any consequences. The lender can still take legal action and this can affect your credit score and reputation.
4. Competitive interest rates: The interest rates on an unsecured business loan is competitive and affordable, especially if you have a good credit score and a strong business performance. The business loan interest rate varies depending on the lender, the loan amount, the loan tenure, and the borrower’s profile. With Bajaj Finance, you can get an unsecured business loan at an interest rate starting from 9.75% per annum.
5. No restriction on the use of funds: Unsecured business loans also give you the freedom to use the funds for any business purpose, as long as it is legal and ethical. You do not have to specify the purpose of the loan or get the lender’s approval for the same. You can use the loan amount to meet your short-term or long-term business needs, such as buying inventory, hiring staff, marketing, upgrading technology, or expanding your operations. You can also use the loan amount to consolidate your existing debts and improve your cash flow.
Unsecured business loans are a perfect choice for businesses that need quick and hassle-free financing without risking their assets. They offer many benefits, such as no collateral, fast approval, flexible repayment, competitive interest rates, and no restriction on the use of funds. If you are looking for an unsecured business loan, you can apply online with Bajaj Finance and get the loan amount in your bank account within just 48 hours*. You can also check your eligibility and loan offer by filling a simple form on the website.
