Shriram Business Loan: Your Complete Financing Solution
Unsecured Business Loan
Shriram Finance offers unsecured business loans tailored for businesses of all sizes, from startups to established companies. These loans do not require any collateral, making them an excellent option for people who need funding without risking their assets. With interest rates starting at 10%*p.a., Shriram Finance provides flexible repayment options that align with your cash flow needs. Apply for Shriram Unsecured Business Loan online today.
Interest and Charges for Unsecured Business Loan
Shriram Finance provides unsecured business loans at competitive interest rates and transparent terms to support businesses that need funding without collateral.The following table outlines the details of interest rates and charges to help you make informed decisions.
| Type of Fees | Applicable Charges |
|---|---|
| Rate of Interest | Starting from 10%* p.a. |
| Processing Fees | Up to 5% |
| Foreclosure Charges | Up to 4% The customer shall not be permitted to foreclose the account within 12 months from the date of 1st EMI |
Note: All the rates mentioned are annualised. Additional GST and other cess shall be charged as applicable.
Features and Benefits of Unsecured Business Loan
Shriram Finance provides a range of features and benefits with its unsecured business loan or collateral-free loans. Here are some of the benefits of Shriram Unsecured Business Loan:
Unsecured business loans come with competitive interest rates starting from 10%* p.a., allowing businesses to manage their financing costs effectively.
Unsecured business loans do not require collateral. This eliminates the need to pledge assets as security. This simplifies the application process and makes it more straightforward for businesses to secure funding.
Borrowers can choose a repayment period of up to 48 months. This flexibility ensures that the loan can be tailored to fit within the business’s financial planning and cash flow.
Businesses can access loans starting from ₹1 Lakh, providing significant amount for various purposes such as working capital, equipment upgrades, or expansion initiatives.
The streamlined application process ensures prompt approval and swift disbursal of funds, allowing businesses to address their financial needs without unnecessary delays.
An online business loan EMI calculator is available to help businesses estimate their monthly payments and plan their finances effectively. This tool aids in budgeting and managing loan repayments efficiently.
Unsecured Business Loan Eligibility and Documents Required
Here are the eligibility criteria and documents required to qualify for Shriram Unsecured Business Loan:
Eligibility Criteria for Unsecured Business Loan
Shriram Finance provides unsecured business loan with eligibility criteria tailored to accommodate a range of business needs. The following criteria must be met to qualify for a business loan:
Eligibility Criteria
AgeApplicants must be between 21 and 65* years of age. The borrower must be 65 years old at the time of loan maturity to meet eligibility requirements.
Business TypeUnsecured business loans are available to various business types, including sole proprietorships, partnerships, private limited companies, public limited companies, and limited liability partnerships (LLPs).
Business VintageThe business should have been operational for at least 3 years. This requirement also applies to self-employed individuals, business owners, and proprietors to ensure a stable operational history.
Documents Required for Unsecured Business Loan
To apply for Shriram Unsecured Business Loan, you may have to provide the following documents. Here is a detailed list of documents required for getting an unsecured business loan:
Required Documents
Identity Proof- Aadhaar
- Passport
Address Proof- Electricity bill
- water bill
- passport
Income/Business Proof- ITR, financial statements
- bank statements
Business Registration Documents- Certificates and licences related to business registration
Application Process for Unsecured Business Loan – Shriram Finance
Applying for Shriram Unsecured Business Loan online is a simple process. Follow these steps to initiate your application:
- Step 01:
Register: Begin by creating an account using your mobile number.
- Step 02
Enter Loan Details: Specify the loan amount and tenure you are applying for.
- Step 03
Enter Business Information: Provide your business details as
- Step 04
Get Verification Call: A representative from Shriram Finance may contact you to verify your application details.
- Step 05
Get Loan Approval: Once the verification is completed successfully, your loan application may be approved.
Difference between Secured and Unsecured Business Loans
Knowing the difference between secured and unsecured business loans is important to selecting the most appropriate financing option for your business needs. The following table highlights the key differences between these two types of business loans:
| Feature | Secured Business Loan | Unsecured Business Loan |
|---|---|---|
| Collateral | Requires collateral to secure the loan | No collateral is required |
| Interest Rates | Generally lower due to the minimal risk | Typically higher, as no collateral is required |
| Approval Time | May take longer due to collateral pledging and evaluation | Usually faster, as no collateral needs assessment |
| Loan Amount | Often allows for higher loan amount | Usually provides lower loan amount |
| Repayment Terms | May offer more flexible repayment terms | Terms may be more rigid compared to secured loans |
| Application Process | Involves extensive documentation and evaluation | Generally simpler and quicker application process |
Types of Unsecured Business Loans
Accessing funds without putting your assets at risk is a significant advantage, and at Shriram Finance we understand that. We offer unsecured business loans or collateral-free loan that allow you to borrow funds starting from ₹1 Lakh. This hassle-free online process is designed to support various business needs, from expansion to daily operations. Here’s a comprehensive list of the different types of unsecured business loans available:
MSME Loans
Purpose: MSME loans are tailored for Micro, Small, and Medium Enterprises. They provide the necessary financial boost to help these businesses grow and thrive.
Benefits: MSME loans are ideal for small businesses looking to expand operations, purchase equipment, or manage cash flow.
Trade Financing/ Trade Finance Loans
Purpose: Trade finance loans are designed to facilitate international and domestic trade by providing funds for purchasing goods or services.
Benefits: Trade finance loans help businesses manage the financial aspects of trade, ensuring smooth transactions and timely payments.
Startup Business Loans
Purpose: Startup business loans cater specifically to new businesses, providing the initial capital needed to launch and establish operations.
Benefits: Startup loans help entrepreneurs turn their ideas into reality by covering initial costs such as hiring staff, renting space, and purchasing equipment.
Supply Chain Financing
Purpose: Supply chain finance helps businesses manage their supply chain more efficiently by providing funds to pay suppliers or manage inventory.
Benefits: Supply chain finance ensures that businesses can maintain a steady supply of goods and services, even when cash flow is tight.
Shop Loans
Purpose: Shop loans are designed for retail businesses, helping them manage day-to-day expenses or expand their operations.
Benefits: Shop loans can be used to renovate stores, purchase inventory, or cover operational costs.
GST Business Loans
Purpose: GST business loans assist businesses in managing GST-related expenses and compliance.
Benefits: GST business loans help businesses navigate the complexities of GST payments and refunds, ensuring compliance with tax regulations.
Business Loans for Women
Purpose: Business loans for women are specifically designed to support women entrepreneurs in establishing and growing their businesses.
Benefits: Business loans for women provide women with the financial resources needed to pursue their business ventures, fostering gender equality in entrepreneurship.
Working Capital Loans
Purpose: Working capital loans are similar to business loans, but they are designed with a focus on providing working capital to manage daily business operations.
Benefits: Working capital loans help entrepreneurs maintain liquidity and manage cash flow effectively.
Loans without Financials
Purpose: This loan option is ideal for businesses that do not have comprehensive financial documentation.
Benefits: Loans without financials allow businesses to access funds without having to provide detailed financial records. This makes it accessible to newer or smaller enterprises.
The various types of unsecured business loans from Shriram Finance offer a versatile financial solution for businesses of all sizes and types, helping them achieve their growth objectives without the burden of collateral.
Note: Please remember that the availability of unsecured business loans may vary based on your business location.
Unsecured Business Loan FAQs
What is an unsecured business loan?
An unsecured business loan is a type of loan that does not require collateral. It is provided based on the borrower’s creditworthiness and business profile. This makes it accessible to a wide range of businesses without pledging valuable assets.
Who can apply for an unsecured business loan?
Unsecured business loans are offered to various business types, including sole proprietorships, partnerships, private limited companies and more. Eligibility criteria may typically involve business history, creditworthiness, and other specific requirements.
What are the advantages of unsecured business loans for new business?
Advantages include quick access to funds, no collateral requirements, simplified application processes and flexibility in loan usage. They are suitable for businesses seeking loans without risking valuable assets.
What are the disadvantages of unsecured business loans?
Unsecured business loans may have higher interest rates compared to secured loans, lower borrowing limits, and stricter eligibility criteria. Additionally, documentation requirements can be more complex.
What is the typical loan term for unsecured business loans?
The loan term for unsecured business loans can vary. At Shriram Finance, it ranges from 12 months to 48 months. This flexibility helps businesses choose a repayment period that aligns with their financial capabilities.
Are there any alternatives to unsecured business loans?
Yes, alternatives include secured business loans, personal loans for business purposes, business lines of credit and gold loans for business.
How can I get an unsecured business loan quickly?
To get an unsecured business loan quickly, ensure you have all the required documents ready. Meeting the eligibility criteria and providing complete information will help in obtaining quick approvals and faster disbursals.
Disclaimer
The information provided in this guide is for educational purposes only and should not be considered financial advice. Always consult with a financial advisor before making investment decisions related to fixed deposits or any other financial products.
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