Quick Ways To Get A Secured Business Loan in India

Secured Business Loan

Secured business loan is a financial model where funds are acquired by pledging property as collateral. Funds are obtained as per the property value, known as the loan-to-value ratio (LTV ratio).

Business loans can be obtained from NBFCs for various business requirements. The ways for acquiring a secured business loan are as follows:

  1. Know the eligibility criteria before applying for a secured business loan

For self-employed professionals and non-professionals:

  • Should be at least 25- 70 years of age.
  • The organisation must be operational with a regular source of income.

For salaried individuals:

  • The individual’s age must be between 33 years to 58 years.
  • Should be an Indian resident.
  • Individuals must be employed with an MNC, a private company or the public sector
  1. Be familiar with the required list of documents

For self-employed professionals and non-professionals:

  • Application Form
  • PAN card
  • Identity proof: Driving License/Passport/Voter’s ID/ Aadhar card
  • Address proof: proof for both office and residence; Passport/Driving License/ Voter’s ID/ bank statement
  • Proof of Ownership: Electricity bill/Municipal tax bill/Agreement copy/Share certificate
  • Business continuity proof: GST registrations/Service tax/tax registrations – VAT
  • Firm constitution: AOA/Partnership Deed/GST registration certificate/Form 32
  • Audited financials for the last three years
  • Tax Audit Report for the previous three years
  • Recent VAT or GST returns of the current financial year.
  • Breakup of all loans – secured and unsecured.
  • List of Directors and shareholding pattern to date
  • Existing loan sanction letters and their corresponding EMI reflecting bank statement for last one year
  • Account statement of the past one year (Business Accounts)

For salaried customers:

  • Application Form: For salaried individuals
  • Compulsory document: PAN card
  • Identity proof: Driving License/Aadhaar card/Voter’s ID
  • Address Proof: Proof for both office and residence; driving license/utility bill/bank statement/bank account passbook
  • Proof of Ownership: Agreement copy/electricity bill/maintenance bill with share certificate/municipal tax bill/share certificate
  • Salary slips of last three months
  • Latest Form 16
  • Employment Proof (Appointment Proof)
  1. Know the features of loan against property
  2. High-value loans made affordable: Salaried individuals get a high loan amount, based on the value of the mortgaged property
  3. Disbursal in 4-days: Minimal documentation and doorstep service makes the loan application process a hassle-free one.
  4. Online account management: Access loan details anytime and anywhere via a customer portal

These are the standard eligibility criteria and might differ from lender to lender. While the secured business loan interest rate is more favourable than unsecured options, few companies have a valuable asset to collateralise when in need of funds. Thus, a standard business loan is also a valid option for smaller businesses, which do not own any immovable properties.

Why consider unsecured business credit?

Following are some reasons why unsecured credit can benefit businesses –

  • No need for collateral – As previously mentioned, unsecured business loans are perfect for smaller firms, which lack any valuable asset to pledge.
  • Quick approval times – Unsecured loans’ application process is simpler to handle since minimal formalities are involved. Also, any individual with a proper credit rating and business vintage can acquire such funds, minimising hassle significantly.
  • Minimal documentation – Borrower’s KYC and identification documents, along with a business’s financial ledgers are all of the documents required for an unsecured business loan. This simplifies the prospect of availing of a loan further. 

Pre-existing customers of Bajaj Finserv can reduce hassle and accelerating the lending process by taking advantage of pre-approved offers. These offers are provided on various financial products like business loans, personal loans and more. You can check your pre-approved offer by providing a few details such as your name and contact number.

A secured business loan can be a highly beneficial option if you are willing to grow your business. Individuals can acquire all the required information as to how to get a secured business loan. Nevertheless, in some cases, unsecured credit is the wiser option, allowing for increased flexibility.

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