Get A Fast Secured Business Loan Online Today
Thinking to get a secured Business Loan Online? Here are some steps that will help you to get a secured loan easily at IIFL Finance!
Financial crisis are unanticipated and, if not attended on time, can threaten the very survival of a business. Although businesses of any size can face a cash crunch at any time, small and medium-sized enterprises are more vulnerable.
But even without a crisis, a business requires financial resources to sustain, grow and stay ahead of the competition. And if a business can’t generate enough funds internally, external capital borrowed from banks and non-banking finance companies can be a good option to meet the requirements.
Still, most people associate long waiting hours and complicated approval processes with banks and financial institutions. But a lot has changed in recent years.
Technological advancements have made the application process and disbursement of loans for businesses much easier. A push over the past few years from the government and the Reserve Bank of India to commercial lenders to provide more loans to SMEs has helped, too.
So, what can prospective borrowers do to ensure they get a business loan quickly and without much hassle?
Secured And Unsecured Loans
Business loans are broadly of two types depending on whether the borrower pledges any asset with the lender.
Unsecured loans, which doesn’t require any collateral, are typically of smaller size and for a shorter duration. Banks and NBFCs consider the borrower’s income profile, revenue, cash flow or outstanding debts to sanction an unsecured loan.
Secured loans, however, do require a collateral such as a residential or commercial property or a piece of land or even moveable assets such as an automobile. The value of the assets pledged is the key factor in deciding the quantum of the secured business loan.
The decision to apply for an asset-backed loan increases the chances of the loan getting approved since banks and NBFCs have the comfort of the collateral in case the borrower is unable to repay the debt.
Steps To Get A Secured Loan QuicklyThough secured business loans are easy to get, prospective borrowers should keep the following pointers in mind before applying.
• A Business Plan:Borrowers should prepare a business plan stating the business’s goal, the purpose of the loan and its utilization. This helps the lenders evaluate the need for the loan.
• Pick The Right Lender:All lenders claim to offer the best terms on business loans. Instead of randomly choosing any lender, applicants should weigh all the loan offers from different lenders and choose the best. It is easy to check for the reputation of the lender and the terms offered by them online.
• Loan Amount:Every loan is a liability as it is the borrower’s obligation to pay back the money to the bank. An amount higher than what is actually needed could add unnecessary burden on the borrower and increase the chances of default.
• Check The Value Of Collateral:Before applying, borrowers must check the value of the collateral they intend to pledge with the lender. Typically, lenders approve secured loans that are 70-80% of the collateral’s value.
• Check Repayment Capacity:Borrowers need to return not just the amount they borrowed but also the interest charged by the lender on the loan. So, applicants must be aware of their loan repayment capacity. Online tools like EMI calculators can be of great help for such occasions.
Once the applicants meet the eligibility criteria for secured loans, they must prepare the financial and personal information documents and fill the loan application form. Potential borrowers applying online can upload the digital copies of the documents and the bank’s representative will contact them.
For a stress-free experience and quicken the loan approval process many banks and large NBFCs have user-friendly online apps. Applicants can download the app on their mobile handset or laptop and can access the apps anytime they want. Online loan applications require minimal documentation that can be submitted quickly.
Secured loans against assets like property or even fixed deposits is based on the collateral provided to the lender. It helps to get a lower rate of interest, secure a higher loan amount, and build a good credit score.
While going to an established bank might be time-consuming because it needs a lot of documentation, reputed NBFCs such as IIFL Finance have made the process simpler and faster keeping in mind the requirements and aspirations of new-age entrepreneurs and business people.
IIFL Finance offers a one-stop solution for all credit requirements and offers secured business loans online. You can log into the company’s website, fill the online loan application form and upload the KYC documents.
The automated algorithms will check if you satisfy the eligibility criteria and if the documents provided are appropriate. If everything is in place you can get the loan amount disbursed within 48 hours.