Business Instalment Loan (BIL) / Unsecured Business Loan
BIL is an unsecured Loan which provided to a self employed individual and entity. Unsecured Loans are normally used by small and medium enterprises (SME), who are keen on expanding their existing business or avail any business upgrade or equipment purchase against the borrowed amount. Loan for fulfilling their working capital requirement.
We offer among the best business loans in India, with complete transparency and competitive interest rates.
These days, many leading Banks and NBFC’s offering different products for all business entities. Our hassle free process, Simple documentation will help you to expand your business.
Rate of interest
The interest rate varies from bank to bank and usually it varies depending upon your profile and the policies / Scheme you opt for . In fact , An individual must fulfil the eligibility criteria, before availing the business loan at this interest rate. Depending upon the profile of the customer, different lenders charges different rate of interest.
Features and Benefit of BIL
- No security / Collateral Required.
- Low Processing fee.
- Minimum paperwork.
- No hidden charges.
- Competitive interest rates.
- Quick Processing of the Loan (Based on customer Support).
- Flexible Tenure Periods (1 year to 5 years).
- Loan amount depends on the repayment capacity of the individual / entity.
- Transfer your existing Business Loan for lower EMIs, and enjoy our benefits.
- Alternate assessment methods for credit eligibility.
- Quick and hassle free loan with speedy approvals.
The following people are eligible to apply for a Business Loan:
- Self employed individuals, Proprietors, Private Ltd. Co. and Partnership Firms involved in the business of Manufacturing, Trading or Services.
- Loan avail for Doctors / CA / Company Secretary / Architect etc…
- The business should have a minimum turnover bank to bank different.
- Individuals who have been in the current business for a minimum of 2 years.
- Those whose business has been profit making for the previous 2 years.
- The business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum.
- The applicant should be at least 21 years at the time of applying for the loan, and should be no older than 65 years at the time of loan maturity.
Secured Business Loans
Secured business loans are different from unsecured business loans because you need to offer some type of collateral to the lender in case you default on your payments for the loan. Basically, collateral is something that you can pledge as a security for repayment of a loan.
Because the loan is “secured”, interest rates are usually lower on secured business loans. They are also easier to get because they pose a smaller risk for the bank.
Secured business loans are higher-value business loans that require a borrower to offer something as ‘security’, usually a company asset such as property, land or equipment. This means the loan is ‘secured’ against one, or more, of these assets, which the lender can take if a business stops making repayments.
Secured business loans differ to unsecured business loans, which don’t require any security.
Because lenders have a better chance of recovering money if it’s secured against a valuable company asset, they tend to regard secured business loans as less risky than unsecured business loans. As a result, lenders can be more flexible with their terms, giving borrowers competitive interest rates and long repayment terms of anything between two and ten years.
Typical uses for a secured business loan include funding the purchase of commercial property, financing a major office refurbishment, and covering the cost of new machinery, all of which can require significant amounts of capital.
Collateral as Security
Not all lenders ask for the same thing as security on a secured business loan, but you should expect to pledge assets such as the following:
- Commercial property
- Or, instead of individual assets, some lenders request the net worth of all assets.
It's important to bear in mind that the value of your assets must be sufficient for a lender to justify giving you the loan.
Features of secured loans
- Loans are given against the title of ownership of assets, which will be used as collateral (like homes, vehicles, assets, property).
- Lower interest rates as compared to unsecured loans, because the bank has a higher level of confidence in your ability to repay.
- More flexible repayment options than regular loans.
- Option of fixed rate and variable rate.
- There is no need for a guarantor for these types of loans.
- Banks and lenders can repossess assets for which loans were taken.
- Improves CIBIL score once secured loan has been repaid in full. More favourable than unsecured loans.
You must meet the following requirements to be eligible for a secured loan:
- Your age should not be less than 21 years and not more than 65 years non-professional, at the time of loan maturity.
- You should either be a self-employed professional / non-professional.
- Applicant must be a resident of India.
- Most banks and lenders require the applicant to have a minimum annual income of Rs.3 lakh per annum.
- Loan amount eligibility is decided based on customer cash flow, security and internal credit model.
- For loans based on business income, the business must have been running and generating a profit for the last 3 years.
- Applicant must have assets, whose value must match or exceed value of loan required.