As a small business owner, you may not have any asset to pledge as collateral for taking a secured loan. Hence, financial institutions provide their unsecured loans as an alternative. With that, you won’t risk losing your asset in case you default on the loan.

A business loan is one such unsecured loan that offers you the necessary funds required for continuation of your business. Whether you are starting off or expanding, these loans can help you in multiple ways.

Furthermore, business loans are more accessible to the public nowadays owing to the growing number of fintech companies in India. The competition among these lenders has also introduced various tailor-made business loans; you can get one based on your company’s requirements.

Therefore, business loans are one of the safest bet when it comes to financing your small business. Below are some of their features justifying the same:

They can provide ample funds for your business
Small businesses can get these loans up to Rs. 30 Lakh which can be utilised as either seed capital or working capital.
Entrepreneurs require capital for setting up their businesses. On the other hand, existing firms need investment both for expansion and also during financial crises. Whatever the reason is, a business loan is your go-to solutions for getting sufficient funds.
These loans don’t have any usage restriction
Lenders don’t impose any restriction on the usage of these loans. So, you can utilise the amount for any business need without any trouble.

5 of the many uses of business loans include:

Purchasing/upgrading plant & machinery
Plant & machinery are a must when setting up a manufacturing business. Also, you may need to upgrade them in case they have been through considerable depreciation.
Hence, these loans can aid you in both purchasing as well as upgrading plant and machinery.
Purchasing raw materials
To churn out products, you will require raw materials and business loans are perfect for providing that monetary assistance.
Restocking inventory
Since the business loan interest rate is low, you can easily avail it to restock your inventory before reaching the reorder level.

Debt consolidation

At times, you may find yourself in debt owing to slow business and limited cash inflow. You have to pay your suppliers in time to ensure you maintain a healthy association with them.
In such situations, business loans come to your rescue in consolidating the debts.
Working capital
Businesses require a constant cash flow to take care of everyday expenses like utility bills, rent, wages, etc. Thus, a shortage of working capital may hinder in business operations for which you can opt for a loan.
You get adequate time to repay the loan
NBFCs like Bajaj Finserv have tenures that range from 12 to 48 months, and also, competitive business loan interest rate. Thus, you get ample time to repay the loan without making it a burden.

Moreover, Bajaj Finserv provides pre-approved offers on these loans which make the process of availing finance hassle-free. These offers also come with home loans, personal loans, and several other financial products and services.
You can check out your pre-approved offer by providing only a few necessary documents.
You have to furnish only a few documents

Business loans can be availed by providing only the following few documents:

KYC – Aadhaar, PAN, Passport, Voter ID, etc.
Address proof – Latest utility bill or any KYC document containing the permanent address.
Any documents or certificate authenticating the proof and existence of the business.
Bank account statements.

These loans require you to fulfil minimal eligibility criteria
The business loan eligibility criterions are as follows:
You need to between the ages of 25 and 55 years.
Your business must have a vintage of at least 3 years.
You must file income tax returns for at least the previous year.
You must audit your business turnover for at least the previous year by a CA.

Additionally, you may need to have a credit score of 750 or above to apply for these loans.
These are the reasons why business loans are one of the safest and easiest forms of financing and organising your small business. Choose these loans today and deliver the necessary financial backing for your business expansion.

Author's Bio: 

Anuj Pandey is an experienced financial advisor and writer who is well known for his ability to market trends as well as for his financial knowledge. He has worked extensively in the finance sector and also written numerous blogs on finance and startup etc. and how they affect the customer in the present market scenario. He has done MBA in finance. Anuj has also amassed a great name for himself as a financial blogger.