Business Loans - Empower your Business with the Money It Needs
For your business to run smoothly and sustainably, you may need funds regularly. It can be to establish your company or to invest in expansion, innovation, or maybe for daily operations. An easy and simplified access to funds can facilitate essential activities, and that’s what we are here for.
What is a Business Loan?
When seeking loans to support business needs, it is prudent for entrepreneurs to have a clear understanding of their financing options. Two primary categories are secure loans, which require collateral, and unsecured loans, which do not.
- What is a Secured Loan?
A secured loan is supported by collateral. A collateral is an asset that is pledged as security for a loan. Lenders have the right to take possession of and sell collateral in order to recoup outstanding debts in the event that borrowers miss loan payments. By providing collateral, the borrower can typically access a larger loan amount compared to an unsecured loan without collateral. - What is an Unsecured Loan?
An unsecured loan is a loan that is not backed by collateral. With an unsecured loan, the lender relies solely on the borrower’s creditworthiness and promise to repay rather than having a claim over any of the borrower’s assets. Unsecured loans offer flexibility but come with higher risk for both borrowers and lenders.
Table for Interest Rates and Eligibility for Secured & Unsecured Loans:
Check out the table given below that mentions the eligibility criteria for the two kinds of business loans:
| Particulars | Details for Secured Loans | Details for Unsecured Loans |
| Age | 23-65 years | 23-65 years |
| Nationality | Indian | Indian |
| Occupation | Business/Self-employed | Business/Self-employed |
| Minimum CIBIL score required | 670 + | 700 + |
| Minimum Period of Business Operation | 2 years | 3 years |
| Minimum income | For Self-Employed: Rs.30,000/ month | For Self-Employed: Rs.30,000/ month |
| Loan amount | Minimum: 2 lakhs
Maximum: 30 lakhs |
Minimum: 2 lakhs
Maximum: 7 lakhs |
| Repayment tenure | Minimum: 1 year
Maximum: 10 years |
Minimum: 1 year
Maximum: 3 years |
| Interest rate offered | 15%*- 24%* per annum | 18%*- 24%* per annum |
*Interest Rates are subject to change.
Documents Required when Taking a Business Loan
Keep the following documents handy when you apply for a business loan:
| Particulars | Secured Business loan | Unsecured Business loan |
| KYC | Aadhaar, PAN card, driver’s license, passport | Aadhaar, PAN card, driver’s license, passport |
| Business Proof | Shop and Establishment Act license, GST Registration | Shop and Establishment Act license, GST Registration |
| Collateral | Property Documents Required | – |
| Income Proof | ITR, Gst Records For Assessd Income :- No income proof Required |
ITR, Gst Records |
| Bank Statement | Required for last 9 Months | Required for last 12 Months |
Why get a Business Loan from PaisaDost?
PaisaDost offers fast and flexible business loans tailored to the needs of MSMEs in India.
- PaisaDost understands the financial challenges facing Indian entrepreneurs
- Leverages technology to deliver more transparent loans with no hidden charges.
- Customised financing solutions help businesses access vital capital quickly
- Makes it easy to invest in growth opportunities, working capital, machinery, inventory and other operational expenses
Over To You
Securing adequate financing is a vital element for any small or big business's success. As an entrepreneur, you work tirelessly each day to propel your ventures forward through dedication and perseverance. Access to capital in a timely manner is equally important to maintain smooth operations and fuel ongoing growth. Let PaisaDost be your partner for all your money-related needs.
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Frequently Asked Questions
What is a collateral in a business loan?
A collateral is an asset or a property that you use to secure the loan. In case you fail to repay the loan amount, the collateral will be taken/ seized by the lender.
What is the difference between a secured and an unsecured loan?
As the names suggest, in a secured loan, the lender lends you money against collateral that you pledge. You give the lender the right to seize your asset/ collateral in case you do not make the repayment. An unsecured loan, on the other hand, does not require collateral. The lender lends you the money based on your financial standing and capability to repay.
What is the use of a business loan?
A business loan is a financial aid that can help you cover the costs of running a business that you are unable to afford. Through a spread-out loan repayment tenure, repaying the loan becomes simpler. From buying machinery to paying salaries, from buying raw materials to constructing a new building, you can make use of the funds for all kinds of business needs.
Can I get a loan for my start-up?
Yes, you can. However, make sure you are eligible and have a well-laid-out business plan before you apply for the loan.
Can I get a business loan without collateral?
Yes, you certainly can. You can opt for an unsecured business loan where no collateral is needed. A good CIBIL score, ITR details, etc., are good enough to get you a good deal.