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Secured & Unsecured Loans

  • Finance is required by a business enterprise at almost every stage of the business life cycle. MSMEs often find it difficult to arrange adequate finance for their operations as well as for expansion and growth
  • In such cases term loan can be taken for purchase of commercial assets & business expansion needs
  • The collateral options are flexible in terms of Residential/Commercial/Industrial property

BENEFITS

  • Since collateral is guaranteed in the worst case scenario of a default, banks generally view secured loans as low risk investments and therefore charge significantly lower interest rates on purchases that are carried out through such loans.
  • Banks are more willing to hand out heftier sums of money
  • They are comparatively easier to obtain.
  • They are an excellent option for buying machinery or expanding your business.

INTEREST RATE

  • Loans that are secured against some collateral have lower interest rates. Usually in the range of 12.5 - 15%.

Proof of Identity

  • Pan Card

Proof of Address

  • Electricity bill
  • Telephone bill
  • Latest property tax receipt
  • Passport
  • Voter id card
  • Company Pan card
  • Proof Of Address - Registered
  • Proof Of Address - Corporate
  • Proof Of Address - Factory/Unit/Plant/Shop

In case of Company

  • Articles of Association
  • Memorandum of Association
  • Certificate of Incorporation

In case of Partnership

  • Certification of registration of firm with the registrar of firms and societies

In case of MSME unit

  • Certificate of registration with District Industry centre (Compulsory for medium MSME)

In case of SSI unit

  • SSI registration number/SIA SEK No.
  • Last 3 years audit report & audited financials
  • Cash flow statement
  • Business Continuity proof - 3 years ITR
  • Last 6 months bank statement
  • Loan statement with sanction letter
  • Photocopies of lease/title deeds of all properties being offered as primary & collateral securities
  • Promoters/Directors Net Worth Statement on company letterhead
  • 3 year projections
  • Shareholding pattern on Company letterhead
  • Credit rating report - ( If credit rating is done)
  • Unsecured Business loans are collateral free loans. Lenders who offer unsecured business loans wont require your business to pledge any collateral to obtain the loan. However, you must still meet the income and credit requirements.
  • It is extended only on the basis of the borrowers financial position, creditworthiness, credit history, and general reputation.
  • A good credit rating increases the chances of a corporate to avail of unsecured loans.
  • They are generally taken in the form of a term loan

BENEFITS

  • Lenders who offer unsecured business loans wont require your business to pledge any collateral to obtain the loan.
  • They are comparatively easier to obtain.
  • They are an excellent option for buying machinery or expanding your business.

INTEREST RATE

  • Unsecured Business loans have a higher interest rate as compared to secured loans as banks associate a higher risk with it.
  • The interest rates could be anywhere between 17% to 22%.

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