Business Owners Find Ease in Availing Collateral-Free Loans for Their Enterprises
In a move to provide easy access to funds, both banks and non-banking financial companies (NBFCs) are now offering collateral-free business loans in India. These unsecured loans can be availed by new and small businesses without having to pledge any assets or property as security.
According to sources, the Indian government has also launched various schemes to support entrepreneurs, including the Pradhan Mantri Mudra Yojana scheme which provides loans up to ₹20 lakh for startups and small businesses. Additionally, initiatives like the Stand-Up India Scheme and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) offer collateral-free loans between ₹10 lakh – ₹1 crore for a tenure of up to seven years.
To be eligible for these loans, business owners typically need to have a minimum business experience of three years in the same field, a turnover of at least ₹40 lakh, and a profitable track record for at least one year.
The application process has been digitized, allowing business owners to apply for these loans online through platforms like Moneycontrol. The entire process is quick and hassle-free, with approvals often received within a matter of days.
According to experts, collateral-free business loans offer several benefits, including minimal documentation requirements, fast processing, attractive interest rates, and no need to pledge assets as security.
Therefore, business owners looking to grow their enterprises without risky investments can now seek these convenient online loan options.
Key Highlights:
- Collateral-free business loans are available for new entrepreneurs without needing to pledge any asset as security.
- Indian government schemes like PMMRY and Stand-Up India offer up to ₹20 lakh and ₹1 crore respectively, with no collateral required.
- Simple and hassle-free online application process through platforms like Moneycontrol.
- Eligible businesses must have a minimum business experience of three years and a profitable track record for at least one year.