Apply Online Unsecured Business Loan in Bangalore

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Unsecured Business Loan in Bangalore

7 mins read

Published: 4 October 2024

Updated: 4 October 2024

Bangalore is Karnataka's capital and India's Silicon Valley. Bangalore is an IT city for different companies, startups, and multinational corporations, making it an important city for innovation and development. Further, the place has two highly recognized institutes Indian Institute of Science (IISc) and the Indian Institute of Management (IIM). It is sometimes really tough to manage a business due to the need to constantly manage financial management and other external funds. If you have a business in Bangalore, applying for a business loan is the most suitable option to get funds. You will be able to get access to capital based on your credit score, and having unsecured business loans. There will not be any need for collateral in order to apply for a business loan.

In this blog, you will come to know how you can apply for an unsecured business loan in Bangalore. It will help you understand more about the financial aid process and tell you how much eligibility is required to qualify for business loans.

Unsecured Business Loans in Bangalore

In Bangalore, an unsecured business loan is a loan that does not necessarily require you to use some valuable asset as security to avail the amount that you need. In contrast, it's when the lender decides how much you are qualified for on the basis of a credit score, the performance of the business, and your ability to repay. This loan can be useful for businesses that are in the starting phase, they might not have a significant asset as collateral.

Features of Unsecured Business Loans in Bangalore

There are some significant characteristics of unsecured business loans in Bangalore:

  • No need for any collateral.
  • Credit score and health of business will be considered for loan approval.
  • Repayment options are flexible.
  • Good for Startups and Small Business Owners

Why to Apply for Business Loans in Bangalore

Bangalore city is a hub for startups and small-scale companies. To keep the prices affordable, which is a basic need for the finances of this business, you need to have funds ready from the collateral-free business loan in Bangalore. It can be used for expanding a business, tackling the flow of money, or acquiring the latest technologies so there is flexibility in meeting all of these requirements by getting an unsecured business loan online. 

Benefits of unsecured business loan in Bangalore

There are some benefits of getting an unsecured business loan in Bangalore:

1. No Collateral Required

There is no requirement for collateral to apply for online unsecured business loans. It can be very beneficial for people with no significant assets to avail of a business loan and fulfill their financial obligations.

2. Quick Approval

You can take an unsecured business loan in Bangalore from the comfort of your home. It is a very simple and flexible process that gives you instant approval by the lender.

3. Flexible Use

You can make use of the loan amount according to your financial needs. You can use it for maintaining the cash flow of the business or can expand your business inventory with the help of the loan amount.

4. Less Documentation

The online process is easy and hassle-free as compared with the traditional ones. It provides a simple step through which you can upload your few necessary documents and get approval for a loan.

5. Customised Loan Amount

The loan amounts that are sanctioned by the banks and NBFCs are customized according to the business's financial needs.

How to Apply Online for Unsecured Business Loan Bangalore

Today, getting a loan in Bangalore is an easy task with the help of online channels. Through online lenders, you can easily and simply fill out the loan application and get an unsecured business loan. In the following guide, you can find out how to apply for a business loan in Bangalore.

1. Research About the Lender

Researching different financers beforehand is a good step when choosing unsecured business loans in Bangalore. Borrowers can then compare their interest rates, loan tenure, processing charges, and repayment methods. After comparing, choose the lender that meets your financial needs.

2. Eligibility Criteria

The second step is to check your eligibility criteria. Each financial institution has its own eligibility criteria, but commonly the following are used to assess the borrower:

  • The minimum period of functioning of the business is usually 1-2 years
  • The Annual Turnover of the business needs to meet a certain threshold.
  • Credit score (typically above 650)
  • Age criteria for the business owner (usually between 21 and 65 years)

Always check your eligibility when you plan a business loan so that you do not go through rejections, which will negatively affect your CIBIL.

3. Less Paperwork

Online unsecured business loans ask for fewer documents than any loans. Here are a few common documents that are required to get online unsecured business loans:

  • Business financial statements (profit & loss accounts, balance sheet)
  • Bank statements (mainly of the last 6-12 months)
  • Proof of business ownership
  • Personal ID and address proof of the business owner
  • GST returns

4. Fill out the Online Application Form

After selecting a lender, you should visit their official website. You will find an application form that you need to fill out, and there will be a space specifically stating the details of your business, what you want, loan requirements, and personal information. Verify your information once to avoid any further rejections.

5. Submit your Application

After you submit your application, the lender will assess your details and might require a few other additional documents to be submitted. If everything goes well, you might get approved within a few days depending on the lender. Most lenders who are online, offer instant approvals on loans, especially for small loan amounts.

Tips to increase the chances of business loan approval in Bangalore

Here are some tips that can help you stand a higher chance of business loan approval.

1. Maintain a High Credit Score:

One of the biggest factors that have a greater impact on whether the lenders will approve or reject your business loan is your credit score. It means you are paying off your debts on time and maintaining a good record of payment means that you have a good credit score and a low risk to lenders.

2. Ensure Business Stability:

Lenders choose those businesses that have operated for almost one year or that have a steady cash flow.

3. Maintain Proper Financial Records:

Current and accurate financial statements will help you as the lender checks your profile for approval of business loans.

4. Borrow as per your needs:

Overborrowing can be a problem for your finances. Make sure you calculate your needs for business before applying.

Conclusion

If you are looking for Unsecured Business Loans in Bangalore then you have come to the right place. My Mudra provides an accessible and quite convenient process for funding without risk to personal or business assets. My Mudra has made the loan process hassle-free for businessmen since it is made simple through an online portal. You can easily get the disbursal of funds to address your needs quickly.

Whatever the reason for taking the loan, whether it is for business expansion, replacing or re-balancing the existing inventory, or mere control and management of operational costs, an unsecured loan with My Mudra gives flexible solutions that differ according to your business requirements. However, getting unsecured business loans becomes easy, only after research on the existing options, followed by satisfaction of all eligibility criteria and submission of all proper documentation for the desired loan. This will help you to the fullest by taking your firm up the ladder of success if the right decisions are being taken at the time of opting for the loan.

FAQs about Unsecured Business Loans in Bangalore

Q1. What is the interest rate on unsecured business loans in Bangalore?

Ans: The interest rates of unsecured business loans in Bangalore depend on your credit score, lender, and the loan amount. It can vary from 14% to 25% per annum for unsecured business loans.

Q2. Can I get an unsecured business loan even if my credit score is low?

Ans: A high credit score is a requirement for lenders. However, some lenders might even take a look at candidates with low scores for secured loans. However, these loans will have very hard repayment plans, and interest on the amount charged is quite high.

Q3. How long does an unsecured business loan take?

Ans: Getting an online portal to get a business loan is a very hassle-free procedure. The amount received from this loan gets disbursed in hours or a day.

Q4. How much can I borrow through an unsecured business loan in Bangalore?

Ans: The disbursal amount changes with business turnover, credit score, and the terms and conditions of the lender. Most lenders provide an amount in the range of ₹50,000 to ₹50 lakhs.

Q5. Is the unsecured business loan of my organization eligible for payback before its tenure?

Ans: Though most lenders permit making a prepayment, there may be additional charges for doing that. Hence, before you apply for an unsecured business loan, you should explore the terms and conditions of the lender.

Also read: Apply for Instant Personal Loans in Bangalore

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