As a small or medium business owner, applying for and getting loans approved can be a task at hand. As a business owner who is still setting up and working on consolidating the business, it can be tricky to fulfill the requirements of most lending institutions, especially banks. Banks are traditional lenders and for the most part their eligibility criteria for giving out loans to small and medium business owners is the most stringent. Banks typically do not go in for high-risk transactions.Given that with newer businesses the risk factor is higher, getting loans approved can be tough.
The question that one might ask then is:
How do I apply for collateral free business loan in India?
For most small business owners, providing collaterals for loan applications can be the toughest task. Collaterals are required for security by traditional lenders as they want some sort of implication on the borrower in case the money ends up not being re-paid.
In such a case, one can turn to non-banking financial institutions. Non-banking financial institutions are platforms that provide loans and small and medium businesses with requirements that are rather achievable. In understanding the challenges of newer businesses, these organizations are in the business of giving out money to business owners who are a few years old and still in the growing phase.
In fact as a businessman when wondering about how do I apply for collateral free business loan in India, try out lendingkart.com one of the most popular and leading loan givers in India. As a market leader in the sector, lendingkart.com, offers collateral free loans to small and medium businesses and honestly, it is as good as it gets. While there are certain basic requirements that need to be fulfilled, overall, the idea is to help applicants get through the process easily, have the support that they require both for application as well as approval.This, in the end creates a loan package for them that they can use.
As mentioned earlier, for mainstream lenders, collaterals form a big part of the security requirement when giving out money.This is something that they are absolutely unwilling to give up. Lendingkart.com has done away with collaterals as part of a non-negotiable requirement and this becomes extremely helpful for the borrower.
One of the other big advantages is the instantaneous process. Everything can be applied for online and the entire process is extremely easy and user friendly. The folks at lendingkart.com understand entirely how critical time is when it comes to business. The last thing a businessman wants is to have to go through a process that is time consuming and cumbersome. The same principle applies to approval and disbursal of money. Quick, fast and easy is the way to go and this is exactly what lendingkart.com offers.
Platforms such as lendingkart.com are critical to the sustenance and growth of small businesses. Clearly, capital is the core requirement for any business to move ahead. Without funding, the possibility of growth and scaling up is almost next to impossible. In fact, before asking the question of how do I apply for collateral free business loan in India, the bigger question to ask is, is it even possible? Thankfully, the answer is yes.
Non-banking financial institutions have a few different ways of covering their risks. In some cases they charge a higher rate of interest and that offers security to some degree. What is important to understand is that these organizations are fully aware of the risks of lending to small and medium businesses but they are still willing to do it. It is the basis of their business model and they work around things to make the money available to small business owners. Not a bad deal at all in the end.