Check Out the Top 5 Reasons to Avail a No Collateral Business Loan

The availability of no collateral business loan has made it easy for new and growing businesses to avail necessary financing without having to worry about risk to personal or business assets. These loans are unsecured advances and come with simple eligibility and document requirements. Moreover, as eligible ventures can avail a collateral-free business loan at short notice, these loans have fast become popular and gained preference over various other forms of financing available to businesses.

Financial institutions extend these unsecured business loans to enable one fulfil diverse financing needs of a growing business, right from meeting cash shortages to purchasing machinery. Many borrower-friendly loan features have become the reason why you should opt for the financing to meet capital gaps for your business. Take a look.

High Loan Value of up to Rs.25 Lakh

Unlike personal funding needs, businesses often require financing of high quantum as the expenses they need to meet are often big-ticket. Even introducing additional working capital to the business would involve significant funding quantum.

It thus becomes essential that businesses have a suitable source of financing that they can fall back on in times of need. A no collateral business loan thus comes to the rescue, with reputed lenders providing financing of up to Rs.25 Lakh as the advance to eligible businesses to help them fulfil their monetary needs with ease. 

Suitable Tenure Flexibility

A long and flexible tenure means convenient management of the loan with affordable repayment in easy EMIs. Thanks to the increasing popularity of business loans, lenders have introduced repayment flexibility with loan tenures for these advances extending as long as up to 5 years. You can use a business loan EMI calculator to assess your EMI suitability and select a suitable tenure that keeps EMIs small while also ensuring tenure-long affordability.

Multiple Repayment Options

Businesses can also rest easy considering that they get to repay their loan with a flexibility of choice as per the availability of finances. While EMI payments are the standard procedure for repayment and a minimum must, businesses can also opt to repay their collateral-free advances through part-prepayments and foreclosures with lump sum fund availability. Few lenders also allow businesses to opt for a balance transfer facility that further allows them to avail funding at reduced rates, making it convenient to manage the advances.

Minimum Eligibility and Documentation Requirements

Although no collateral business loans are unsecured advances, the eligibility and document requirements are kept at minimal, allowing a wider reach to smaller are newer businesses to avail funding. Simple criteria like age, credit score, minimum monthly income and years of business stability are laying down as essential criteria. Simultaneously, the documents asked for surround these criteria only apart from KYC compliance.

Loan Application without Stepping Out

With reputed lenders, you can also avail a collateral-free business loan without needing to step out of your home or office. Simply visit your selected lender’s official website online, meet loan eligibility and fill up the application form digitally. A lender representative will connect with you shortly to collect documents.

Once you have applied for a no collateral business loan, you can expect fast loan approval and consequent disbursal with the right eligibility. Keep all the necessary documents handy before applying to ensure hassle-free application processing.


Hero FinCorp is a diversified financial services provider in India. We are an associate company of Hero MotoCorp Ltd. Hero FinCorp Limited (HFCL) was incorporated in December 1991 as Hero Honda FinLease Limited. After the restructuring of our parent company Hero MotoCorp Limited (formerly Hero Honda Motors Limited), HFCL also changed its name to Hero FinCorp Limited in July, 2011.

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