Unsecured business loans are a boon for small business owners, as they help them pursue their dreams and fund their business growth. These loans encourage SME owners to aim for the highest level of growth without worrying about finances. These days, NBFCs offer small business loans at competitive interest rates, thereby allowing businesses to attain their success goals. You may apply for an online business loan right from the comfort of your home or office and get your required funds directly in your bank account.
Let us check out how can a small business loan help your business grow.
What is a Small Business Loan?
A small business loan is a short-term loan that you can use to fund your business growth and expansion. If you are an existing business with 2-3 years of vintage, you can apply for an online business loan and use it for any business-related purpose you want. Since these are unsecured business loans, you can avail them without providing any collateral, security, or guarantor. Whether you want funds to sustain your regular operations, build capital, fund growth, or leverage an opportunity, you can make it happen with a small business loan.
These days, NBFCs have simple eligibility conditions and minimal documentation requirements that anyone can meet easily. However, one condition you need to fulfil is a credit score of 725 or above. If you have a good credit history of responsible credit behaviour, lenders will offer you an ample loan amount at competitive interest rates. Therefore, you can take a small business loan to achieve your business goals and grow.
Importance of Taking a Business Loan
The significance of a business loan is paramount. Considering that a majority of Indian SMEs find it hard to afford paying outright for their goals, the importance of small business loans cannot be overstated. Since resources are increasingly getting more expensive with each passing day, it makes sense to avail a business loan when you need funds. Furthermore, you do not need to repay the borrowed amount in lump sum. The lenders distribute your principal amount in monthly EMIs across several months or years along with the interest rate.
Another critical aspect of business loans is that you can use your approved loan amount for any business-related purpose you want. Whether you want to build working capital, expand your workplace, add a new physical location, upgrade equipment, invest in marketing, or hire new employees, a business loan can financially help you achieve what you want. Therefore, apply for business loan online and gain an extra edge, especially considering the increasing competition among businesses at a global level.
Benefits of Taking a Small Business Loan
These are some of the benefits you can avail by funding your business growth and expansion with unsecured business loans.
No Collateral Requirement: Since these are unsecured loans, you can avail them without putting any asset at risk. You don’t need any security or guarantor either. You can get your approval based on your credit score. If you have been regular with your payments in the past, the lender may perceive you as a responsible borrower and agree to lend you a loan.
Ample Loan Amount: Lenders offer generous loan amounts to fund your business growth and expansion. For instance, Clix Capital offers business loans of ₹ 5 to 50 lakhs that is sufficient to fund most short-time projects.
Easy Application: NBFCs have made online application procedures much easier and faster than before. Just fill out an online application form, and you are good to go.
Flexible Repayment: One significant benefit of small business loans is that they come with flexible repayment tenure. Instead of having a fixed loan term, these loans allow you to select a loan tenure according to your budget and repayment capacity. For instance, Clix Capital allows you to choose a loan term from 12 to 36 months, which may be longer for self-employed professionals, which is 12 to 48 months.
No End-Use Restrictions: Once your business loan is approved, you are free to use the loan amount to cover any of your business-related expenses. Whether you want to build capital, fund growth, or grab an opportunity, you don’t need to answer anyone where you spent the money.
Who Can Apply for a Small Business Loan?
If you are a small business owner, you must be wondering whether you are eligible for unsecured business loans or not. For this, you need to check out the eligibility conditions of some lenders. For instance, to apply for business loan from Clix Capital, you need to fulfil the following requirements:
- You must be minimum 21 years of age at the time of loan application
- You should not be more than 65 years of age at the time of loan term end
- Your business must have a minimum turnover of ₹ 1 Crore
- Your business must have at least 3 years of vintage in the current work area
- The majority of your business should be routed via the banking system, reporting audited financial statements for the last two years, or capturing turnover in the previous year through GST returns
If you fulfil the conditions mentioned above, you are eligible to apply for an online business loan from Clix Capital. However, before applying for the loan, check your credit score and ensure that it is minimum 725 or above. Lenders would want to see that you have responsible credit habits and are worthy of the credit they lend to you.
Are you looking for a small business loan from ₹ 5 to 50 lakhs? Look at no other place than Clix Capital. We offer unsecured business loans of this amount at competitive interest rates. Use our easy online application procedure to apply for a business loan and get the funds you need to grow your business.
You can also reach out to us at firstname.lastname@example.org or call us at 1800 200 9898
* T&C Apply