Advantages of a business loan without collateral

Your business may require funding from time to time to achieve specific targets like business expansion, equipment purchase, marketing, manage cash shortages, and so on. A Business Loan is often the most suitable option to meet these requirements. 

Business Loans can be secured or unsecured. While secured loans require collateral, an unsecured loan doesn’t need any collateral. HDFC Bank, India’s No.1 Bank, offers Business Loans without collaterals, making it easier to procure. However, the advantages of unsecured loans extend beyond their simplicity. Let’s look at some of the key advantages of availing a Business Loans without collaterals:

  • Quick processing and disbursal – In case of a secured loan, the bank has to verify the worth of the collateral provided. This exercise often requires additional time. However, in an unsecured loan, the lender doesn’t have to assess the value of collateral or documents like business sales and credit reports. With HDFC Bank, you can apply for a Business Loan through a quick and easy online process. With minimal documentation and formalities, the loan amount will be created without any hassle. 

  • Useful in critical situations – In case of a sudden business emergency, an HDFC Bank unsecured Business Loan can be one of the best and fastest means of funding. With a Business Loan of up to Rs 75 lakhs disbursed within 48 hours, you can make sure that your business doesn’t come to a standstill due to a shortage of finances.

  • Lifts credit score – When you avail an unsecured Business Loan and repay your EMIs timely, your credit score improves. As your credit score improves, your chances of availing more loans also improve. So, if you have plans of expanding your business in the future, availing an unsecured Business Loan from HDFC Bank and sticking to your repayment schedule is the way to go.

  • Flexibility – Unsecured Business Loans can be availed and repaid by opting for convenient terms. You can borrow as and when you need and make part payments without facing penalties. HDFC Bank allows a dropline overdraft facility wherein you can draw as and when you need. Interest is charged only on the amount utilised. You can foreclose or part close the Business Loans six months into your loan tenure.

  • No asset, no problem – For new businesses who don’t have sizeable assets to secure their loan, an unsecured loan is a more feasible option. Such businesses may have a decent cash inflow or credit score, but being new, they may not have substantial assets at their disposal. Hence, an unsecured loan is a safe way to meet their financial requirement. HDFC Bank approves a loan of up to Rs 75 lakhs without asking for any collateral, guarantor, or security.

  • No risk to assets – When you apply for a secured loan, prolonged default in repayment can result in risking the secured asset. Lenders have the option of recovering your loan default through the asset. However, with an unsecured Business Loan, your assets are under no such risk. Besides, with the flexibility offered by HDFC Bank, repayment defaults can be avoided through customised repayments. 

  • Competitive interest rates – The record lowering of repo rates by the RBI and the competition among banks means that you can avail an unsecured business loan at competitive interest rates. 

Expand your business and take it to new heights by availing a Business Loan from India’s most trusted bank. At HDFC Bank, we promise a convenient process and smooth experience. Click here to apply for a Business Loan now!

Looking for reasons to apply for a Business Loan? Click here to read more!

​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Business Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.