Business

How to Get a Startup Business Loan without Collateral

How To Get A Startup Business Loan Without Collateral
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Many small dreams come to an end when there is a shortage of funds in a small business startup. Funds are necessary for any startup business because you have to meet the day-to-day expenses and acquire necessary assets. But you can fulfill your dreams if you borrow some money for business expansion. Therefore, the only way out is to get a startup business loan without collateral as you don’t have an asset to a mortgage.

We know that you’ll be in a dilemma that is there any financial institution that grants collateral-free startup business loans. Don’t worry we’ll help you to know some of the known Banking and Non-Banking institutions which grants loan without any guarantor and security. But there are certain terms and conditions of every lender which you have to fulfill in order to avail collateral-free startup loans.

Top 5 Lenders for Startup Business Loan without Collateral

It will be a time taking task if you start digging the web in search of the loan schemes of various financial institutions. Therefore, we are here to save your precious time and help you to compare the rates, charges, and eligibility of startup business loans.

Startup Business Loans by ICICI

Everyone knows that ICICI is one of the oldest and trusted Private Banking Organisation so you can easily rely on ICICI business loan schemes. You can use the loan amount for business expansion and the purchase of raw materials.

Rates and Charges

  • Processing fees of a maximum of 2% excluding taxes.
  • Unsecured Facility Interest Rate is up to I-MCLR-6M+6.50%.
  • Maximum Loan Amount for Collateral Free Startup is 2 Crore.

Eligibility 

  • The minimum age for applying ICICI Business Loan is 25.
  • The maximum age for ICICI business loan is 65.
  • 5 years of experience in the same field of business is necessary.
  • The business should have generated profit in the last 3 years.

Bajaj Finserv

Bajaj Finserv is a non-banking financial corporation that can also help you to get a collateral-free business loan for a startup. You can easily avail the loan amount up to 30 lakhs without mortgaging any assets or documents. The maximum tenure for repayment of the loan is 8 years. You have this option as well for getting a startup business loan without any security.

Rates and Charges

  • Interest on the loan starts from 18%.
  • Processing Fee is up to 2 percent.
  • Rs 2500 would be charged if the EMI is not paid on time.
  • 2% is the penalty interest.

Eligibility

  • Age Range of the applicant must be between 22 years to 55 years.
  • The business must be active for not less than 3 years.
  • The applicant must file the ITR of the previous year.
  • Turnover must be audited by a registered Chartered Accountant.

HDFC Startup Loans without Collaterals

You can avail more options for startup business loans and HDFC is one of those options. HDFC is a banking institution which sanctions loans without collateral security. We think the interest rates and schemes might impress you.

Rates and Charges

  • Provides Startup Business Loans without a guarantor between 40-50 lakhs.
  • Processing Fee Charges is 0.99%.
  • The tentative Rate of Interest is 15.75%.
  • Overdraft Limit of One Lakh to Five Lakhs.
  • Tenure of One year to Four years.
  • Net Banking and Mobile Banking facility to the borrower.
  • No Need of any Collateral Security.

Kotak Startup Business Loan without Collateral

Kotak also lends collateral-free business loans for startup and with good benefits. So you can apply for business loans from Kotak Institutions if you don’t want to mortgage any asset or property. If you want to know the rates and eligibility of business loans then you can see them as follows:-

Eligibility

  • The turnover of the business must not be less than 40 Lakhs.
  • The age of the business must not less than 3 years.
  • Applicants should have the business either of manufacturing or trading.
  • The Age of the Applicant must be between the range of 25 to 65 years.

Rate and Charges

  • Negotiable Processing fees of 2% on the loan amount.
  • Rs 3500 Document Charges if the loan doesn’t exceed 10 lakhs.
  • Rs 6000 Document Charges if the loan amount exceeds 10 lakhs.
  • All the above charges are exclusive of GST.

Ziploan Schemes

Ziploan is a non-banking financial corporation that can also help you in getting the startup business loan and you don’t have to keep any collateral security for availing it. Their interest and the whole scheme might fit with your business plans. You can check out the features of Ziploan schemes.

  • PaperWork and formalities are limited.
  • Sanctions Startup Loan without any collateral security.
  • You’ll get the loan within 3 working days.
  • Easy EMIs without any pressure or load.

Conclusion

Now, we would like to wrap things. We have told you all the aspects of getting a startup business loan without collateral. You can easily take the loan and expand your business. You have the eligibility criteria and rates of different financial institutions. Compare all of them and then take your decision. You can use the funds either for purchasing the machinery or managing the working capital and it totally depends on you. We hope our blog proved informative to you.

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