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Why Unsecured Enterprise Loans are More and more Standard and The Greatest Possibility for Small Companies


The lending system in India is going through a phase of evolution at present. Today, you can apply for a business loan online from your PC or smartphone and use your loan amount to meet any of your business-related expenses. Whether you want to buy inventory, upgrade equipment, build working capital, hire employees, or expand the workplace, you can efficiently fund its expenses with unsecured business loans.

If you are a business entrepreneur looking forward to expanding your empire, a small business loan can be the best source to provide you with the funding. Let’s see how unsecured business loans are changing the ground for small businesses.

How Business Loans Helps the Lives of Small Entrepreneurs

Steep fees and charges, high processing fees, delay or uncertainty in loan approval and disbursal, and fixed repayment terms are now things of the past. While conventional loan application methods made business loans highly inaccessible to entrepreneurs, NBFCs now offer easier and newer ways of borrowing money. For instance, if you have been running your business successfully over the last few years, you can apply for a business loan to rent a bigger workspace, increase your staff, upgrade your machinery, invest in marketing, or purchase inventory.

You can cover expenses for these by availing a small business loan of upto ₹ 50 lakhs at Clix Capital. Alternatively, getting a business loan from conventional banks and lenders has always been arduous. While some lenders take so much time to decide your loan approval, NBFCs like Clix Capital offer it at an excessive speed. There are so many trustworthy business loan lending NBFCs in India that can help you reach new avenues by giving you the required funds. So, when you need support to expand your business, unsecured business loans can help you scale it.

What Difference Does Online Loan Application Make to Business Financing?

New-age lenders disburse loans to both individuals and MSMEs. Thus, they save many from falling into the debt trap. The loan cycle becomes simpler and easier with the new-age online lending model, which takes just a few minutes to apply for a loan, get approval, and receive the loan amount directly in your bank account. Online loan application is changing the business financing landscape in India.

The online lending platforms leverage artificial intelligence to get valuable insights into your eligibility. For instance, you can check your credit score to determine your eligibility before filling up the application form. Automated methods accelerate the working process of lenders and help them make quick lending decisions.

How Small Business Loans Support the Indian Economy?

By providing the needed funds to MSME, business loans are helping entrepreneurs create employment, thereby aiding the country’s overall growth. Most importantly, MSME lenders play a critical role in letting small businesses grow because of their easy financing models. NBFCs also offer flexible repayment options to make finances more accessible to MSMEs.

Also Read: A – Z of Business Loans for First-Time Loan Applicants

Business owners can now get quick funds, choose their repayment term according to their capacity, make timely payments, and boost credit score to improve their prospects.

How NBFCs are Boosting MSME Growth in India

MSMEs require small business loans to run and scale up their business. NBFCs save them from the difficulties they would have faced while dealing with banks and other conventional lenders. Small-scale companies play a crucial role in the Indian economy, and NBFCs can provide them with the needed funds with easy eligibility conditions and minimal documentation requirements. The low turnaround time offered by NBFCs makes funds readily accessible to small businesses.

By removing the inconveniences related to lending, NBFCs have made business loans online, paperless, and instant. The future of business lending seems to be promising with NBFCs like Clix Capital. The convenience and seamless experience of applications can help businesses grow exponentially.

 

Features and Benefits of Small Business Loans

Need funds to expand your business? Here are a few features and benefits you must know:

No Collateral Requirement: Since these are unsecured business loans, there is no need to provide any security, collateral, or guarantor for such loans.

Flexible Repayment Tenure: Clix Capital offers 12 to 36 months to repay the borrowed amount according to their repayment capacity.

Competitive Interest Rates: Most lenders have competitive business loan interest rates that make business loans easily accessible and repayable.

Who is Eligible for a Small Business Loan?

To apply for a business loan from Clix Capital, these are the business loan requirements you need to fulfil:

  • You must be minimum 21 years of age at the time of loan application and maximum 65 years at the time of loan term-end
  • Your business must be a proprietorship, private limited company, closely held non-listed company, or a partnership firm involved in services, trading, or manufacturing
  • Your business must have a minimum turnover of ₹ 1 Crore
  • You must have a business vintage of at least 3 years in the current field
  • You must be reporting audited financial statements for the last 2 years, and the majority of your business should have been routed through a bank, or you must have captured turnover over the last year through GST returns
  • A CIBIL score of above 700 and CMR up to 6 with stable income flow.

Documents Required to Apply for A Business Loan

These are a few documents you need to avail a business loan from Clix Capital:

  • Completed loan application form
  • Passport size photograph
  • Identity Proof, which may be your Aadhaar Card, PAN card, or government ID if you are a government employee
  • Address Proof, which can be your Aadhaar Card, passport, driving license, voter ID card, or utility bills for the last 2 months
  • Proof of Ownership
  • Financial Documents, which include the following:
  • PAN Card for a firm, company, or individual
  • GSTIN
  • 6-months bank statement
  • Copy of the most recent Income Tax Return form
  • Computation of income, audited balance sheet, and profit & loss account for the last 2 years
  • Proof of continuity of the business of 3 years, which can be your sales tax certificate, establishment, ITR, or trade license

Unsecured business loans are excellent sources of finance to let your business grow. At Clix Capital, we offer small business loans of upto ₹ 50 lakhs with flexible repayment tenure. Apply for a business loan and get a firm footing in the Indian MSME segment.

For any queries, find us on Facebook, Instagram, LinkedIn, Twitter, or WhatsApp.
You can also reach us at hello@clix.capital.com or call us at +91-120-6465400.T&C Apply*.



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