Looking for a loan can be a great way for companies that quickly need a certain amount of money. The reasons for this decision-making are many: investments, working capital, renewing inventories, etc. In that medium are unsecured loans.
Your company may need funding at some point to attain specific targets such as marketing, business expansion, purchase of equipment, and many more. In such a case, a business loan is the most suitable option to meet the requirements.
Typically, business loans are unsecured or secured. The secured loans need collateral, but the unsecured loans don’t require any collateral. lendingplate offers unsecured loans without collateral, which makes them easier to procure. The benefits of an unsecured loan go beyond simplicity. Let’s look at some of the benefits of getting an unsecured loan.
1. Doesn’t Need Collateral
Unsecured loans are one of the best sources of money for your small firm since they don’t need any form of security or collateral. If you’ve taken an unsecured loan for business purposes and it doesn’t work out as expected, there is no need to worry about losing your business or assets.
2. The Qualifying Criteria are Minimal
The criteria needed to qualify for an unsecured loan are stringent, but you may have to show proof of income stability. So, you may be requested to provide a payslip or a PAN number. If you give these details, you have a high chance of getting an unsecured loan.
3. Instant Funding
An unsecured loan is offered instantly since not many documentary proofs are required. Approving such a loan is very simple, convenient, and streamlined. Also, you may fill out your loan application form online. This helps in saving effort and time.
4. Higher Loan Amounts
If you decide to go for an unsecured loan, you may apply for a higher amount, up to 2 Lakh INR, as compared to a secured loan, since you must get the loan amount which equates to the value of the collateral.
5. Few Restrictions
If you get an unsecured loan, you aren’t restricted on how you use the money. You can use it for the purposes you want, be it buying an asset, expanding your business, or going on vacation.
6. Less Paperwork Involved
We are now in the 21th century, and the world is becoming digital. There are digital loan facilities available to avail a loan in this era that is completely paperless. Since no asset is provided, unsecured loans tend to require less paperwork. You just have to send some digital documents like an Aadhar card, a PAN, and income-related documents to obtain an unsecured loan. If you’re applying online, you should fill in the basic details, and once done, the lender transfers money to your account after ascertaining your eligibility. Unsecured loans are typically provided by registered NBFCs and these NBFCs provide instant personal loan within an hour after completing borrower verification.
In general, financial institutions need one to pay back the amount of loan borrowed in fixed installed every month in a limited time frame. But, paying back the borrowed loan can be a challenge. An unsecured loan might be your only ideal solution since the lenders provide flexible payment solutions.
Getting an Unsecured Loan
Some years back, getting a loan wasn’t easy since you had to physically go to the lender to apply for the loan. But these days, things have changed, all thanks to technology. You just submit your application online and wait to receive funds in your account. If you have met all the requirements stipulated by the lender and qualify for a loan, you have a high chance of getting the loan. The best part is that the loan is made instantly.
How to Get an Unsecured Loan?
Currently, it is possible to access the unsecured loan in an uncomplicated way. The entire trading process takes place 100% online.
To get an unsecured loan, you must fill out a form showing the amount you want and the reason for the loan. Similarly, you should provide documents showing proof of your residence, employment, identity, income, etc.
From there, it is possible to scale the scenarios considering the term and number of loan installments. At this time, before making any decision, the entrepreneur must consider the objectives of the loan. After everything is right, the deal is closed, without the need to leave the house to have that coffee with the manager. All documentation is shared in a simple way, and the loan amount is available in a few hours.
Unsecured loansare emerging as a savior for micro, small, and medium enterprises. Lately, some financial institutions have started offering an unsecured loan to any form of business. With all the benefits that come with it, there is no need to worry about investing in businesses again. Getting an unsecured loan at lendingplate is a one-stop solution for your money problems.