Skip to main content

4 Reasons Why Unsecured Business Loans Are Favorable

 Unsecured loans are a type of loan that are not secured by collateral such as a vehicle or residence. Instead, they rely on the borrower’s credit score and income as evidence of their ability to pay back the loan. These loans have become increasingly popular in recent years. Before delving into the specifics of unsecured loans, it is important to understand what they are and why they have become so popular. In this article, we will explore 5 main reasons for unsecured loans.



1. Simple And Fast Approval Of Loans

Unsecured Business Loan (UBL) is designed specifically for small and medium-sized enterprises (SMEs). These loans are designed to provide quick access to finance for SMEs, allowing them to capitalize on new opportunities or address immediate financial needs. Approval for a bank loan can be difficult and can take anywhere from ten days to a month, making UBLs a viable option for SMEs.


Also Read: Top 5 Factors Affecting Your CIBIL Score

2. Helps Small Businesses Survive In The Ever-Evolving Market

If you're a small business owner, you know how tough it can be to stay afloat in the ever-evolving market. That's why you need a loan to give you the security you need to move forward. Demonetization and the Goods and Services Tax (GST) have had a huge impact on the economy, and it was already hurting small business owners financially before these policies came into effect. So, if you're looking for a way to get the cash you need to get your business back on track, you should consider getting a small business loan with no strings attached.

3. Easy Application Process

Getting a loan from a new-age non-banking financial company like Poonawalla Fincorp is super easy these days. All you have to do is fill in an online form and have a chat with a relationship manager about your business plan. You can get a loan in a day!


Also Read: What Is NPA And Its Impact On Indian Economy?

4. Repayment Options Are Flexible

Usually, the loan companies have a set repayment plan for a loan, but with an unsecured business loan, you can choose how much you want to pay each month based on your cash flow and how comfortable you are. This is great because paying off the loan on time boosts your reputation in the business world and helps your credit score.


Final Thoughts


Unsecured business loans are one of the most sought-after business loans in India due to its many advantages. Unsecured business loans can be availed by salaried and self-employed individuals alike. Hence, unsecured loans are a popular choice among business owners. However, it is essential for business owners to consider the pros and cons of an unsecured business loan before making a decision.
Labels:

Comments

Post a Comment

Popular posts from this blog

How Poonawalla Fincorp and IndusInd Bank’s Co-Branded RuPay Credit Card Caters To The Growing Digital Financial Services in India

  India's financial landscape is rapidly evolving, with digital financial services becoming a cornerstone of economic growth and individual financial empowerment. Recognizing this shift, Poonawalla Fincorp and IndusInd Bank have partnered to launch the eLITE RuPay Platinum Credit Card, a co-branded credit card designed to cater to the growing demand for digital financial services in the country. This strategic collaboration aims to blend Poonawalla Fincorp's deep customer insights with IndusInd Bank's robust banking infrastructure to offer a product that is both innovative and user-centric. Leveraging Customer Insights Abhay Bhutada, MD of Poonawalla Fincorp, is known for spearheading the firm to lead a customer-centric approach, bringing valuable insights into the needs and preferences of the modern Indian consumer. With a diverse portfolio that includes personal loans, business loans, and home loans, Poonawalla Fincorp has a nuanced understanding of what Indian consumers...
Post a Comment
Read more

NCDs: A Student’s Guide to Corporate Fundraising

For finance students, non-convertible debentures (NCDs) offer an opportunity to explore how companies manage capital, while artificial intelligence (AI) in HR is transforming workforce strategies. Poonawalla Fincorp ’s decision to raise Rs 190 crore through NCDs is not just a financial move—it reflects the intersection of structured finance and cutting-edge technology. Understanding NCDs: A Key Financial Tool NCDs are fixed-income instruments issued by companies to secure funds without diluting equity. Unlike convertible debentures, they do not convert into shares, making them ideal for businesses seeking debt-based funding. In this instance, the NBFC aims to raise Rs 100 crore with an additional Rs 90 crore via a green shoe option. These debentures are secured, redeemable, rated, and listed on the Bombay Stock Exchange (BSE), offering both safety and liquidity. With a coupon rate providing an extra 2% over the applicable base rate, they appeal to investors prioritizing consistent retu...
Post a Comment
Read more

Poonawalla Fincorp Introduces Education Loans, Stocks Show Positive Trend

  Poonawalla Fincorp has taken a decisive step into the education loan sector, offering financial support to students pursuing higher education. This strategic decision has drawn investor interest, causing a rise in the company’s share price. On Monday, March 10, the financial institution revealed its new loan offerings, with funding options of up to Rs 3 crore. This move is aimed at making quality education more accessible by providing flexible and efficient financial assistance to students. Market Reaction and Stock Performance  The announcement had an immediate impact on Poonawalla Fincorp’s share value. The stock climbed 2.3 percent to an intraday high of Rs 294.90 before settling at Rs 292.05 by 2:20 PM, reflecting a 1.32 percent increase from the prior session’s close. This upward movement was particularly noteworthy, as the broader market remained relatively stable, with the BSE Sensex registering only minor gains. Although the stock is still well below its 52-week high...
Post a Comment
Read more