How Can I Raise Collateral-free Business Loans In Ahmedabad?

1. How Can I Raise Collateral-free Business Loans In Ahmedabad? Collateral-free business loans in Ahmedabad are offered by numerous loan lenders and so, they are very easy to avail. Notably, business loans are generally of two types- secured and unsecured. A secured loan is a collateral loan which is only offered when the borrower pledges an asset having some monetary value. An unsecured loan is collateral-free business loan in India which can be availed without pledging an asset. Collateral business loans involve less risk since there is an asset pledged to back the loan amount. Therefore, they are mostly offered by banks as they are less likely to take risks while lending loans. Collateral-free business loans are offered by NBFCs and Online Lending Companies since they are willing to take risks. There are many lenders in Ahmedabad who offer business loans without security. A small business owner can easily avail business loans from them without much hassle. Documents for Unsecured Business Loans As said earlier, the unsecured business loans are generally offered by NBFCs and Online Lenders. They also have a requirement for minimal documents, i.e. they offer MSME loans at minimal documentation. This allows the borrower to get access to additional funds without much trouble of collecting documents. Said that, every lender has a requirement of different documents. However, the following are the documents that are commonly asked: •PAN card •Bank statement

2. •ITR •Business place address proof •Residence address proof •Eligibility for Business Loans without Security Eligibility criteria are set by the lender to determine if the borrower is capable enough to repay the loan amount. Every lender has some standards upon which it establishes the credibility of the borrower. CIBIL score is an important part of eligibility criteria. Additionally, there are some other factors as well which are considered: •Minimum Turnover of INR 10 Lacs in the last 12 months. •Last year ITR of more than INR 2.5 Lacs. •Either house or business premises should be owned. •The business place should be separate from the residence. •Business vintage (operations) for at least 2 years. How to get Collateral-free Business Loans? To get an unsecured business loan in Mumbai, Ahmedabad, or any other Indian city, follow the following steps: 1.Search for the lender who offers collateral-free business loans. However, not all the lenders are the best for you. So, you need to shortlist a few loan lenders in Ahmedabad. You can compare loans and loan lenders on the basis of the documents required, eligibility criteria, disbursal time, etc. 2.After zeroing in on a lender, next you have to apply for a business loan. The online lenders and NBFCs offer online loan application which can be filled in less than 10 minutes. You need to provide your personal and business details. 3.After applying for a loan, submit the documents. You can upload the soft copies of the documents online on the lender’s website. After this step, the loan application is submitted. Next, it is the work of the lender to further process the application.