Unsecured Business
Loans

Unsecured Business Loans

If you want a business loan without offering collateral security, an unsecured business loan might be just what you are looking for. These are good funding options for businesses that don’t on any assets in the form of properties or businesses that would prefer not to offer any collateral security or any company that growing fast and needs finance quickly. Many Banks and NBFCs provide different varities of unsecured funding up to 2Crores.

Different types of unsecured loans

1. CGTMSE:Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

Availability of bank credit without the hassles of collaterals would be a major source of support the entrepreneurs to expand their business. Keeping this objective in view, Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen credit delivery system and facilitate flow of credit to the MSE sector.

Maximum Loan amount: 2 Crs

Which type of business can avail the scheme?

Manufacturing and Service industry ( Except Retail trade, Educational institute, SHG, Training institutions)

2. Unsecured Business Term loan:

Loan amount :Upto 1 Crs

ROI: 16% upward

Processing fee: 2% of the loan amount

Loan tenure: upto 5 years

Who can be funded:

  • Proprietorship firm / Self employed non-professionals
  • Partnership firm/LLP
  • Private limited company
  • Self employed professionals and doctors

Who all are eligible under self employed non- professionals ?

  • Traders
  • Retailers
  • Manufacturers
  • Vendors
  • Whole sellers and distributors
  • Service providers

Who all are eligible under self-employed professionals ?

  • Doctors
  • Architects
  • Chartered accountants
  • Company secretary / Cost and Work accounts (CWA)

On What basis business loan can be availed?

  • Audited financials
  • Credits and debits in the bank account (Business account)
  • GST filed
  • Income tax returns – At least latest 3 years
  • Turnover of the business
  • Existing loans

Documents required:

  1. Latest 3 years ITRs with complete set like P&L , Balance sheet and Audit report ( If applicable)
  2. KYC: Pan card copy, Aadhar card and address proof
  3. Business Establishment proof ( GST Certificate)
  4. 1 Year latest bank statement
  5. GST returns – Latest 1 year

Existing loan details (if any)

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