Named by Forbes as one of the fastest-growing cities in the world, Chennai is a powerhouse of business opportunities. It has a strong industrial base in automobiles, hardware manufacturing, healthcare, and computer technology.
With a plethora of established enterprises, Chennai is also home to small businesses operating in the manufacturing, trading, and services sectors. Despite the business-healthy landscape, small business owners often struggle to acquire a business loan in Chennai at the right time. Traditional banks involve a complicated and long loan application process that often ends with frustration or the added risk of pledging collateral.
An unsecured business loan is something that can become the driver of financial growth for MSMEs. It can assist small business owners in Chennai to commence operations, invest in quality machinery, and meet their routine financial obligations with ease. The right financial support at the right time can expedite business growth and enable small business owners to mark their presence in a competitive market. In this article, we look at how you can acquire a business loan in Chennai.
Unsecured Business Loan: Explained
An unsecured or collateral-free business loan does not necessitate a business owner to pledge any form of collateral to the lender. An unsecured business loan is disbursed on the basis of the company’s financial record and after all the necessary document verification.
These loans offer flexibility in terms of repayment and are usually sanctioned for a short period of time.
Unsecured vs Secured Business Loan
- Secured loans need collateral, while unsecured business loans do not
- Since secured loans need collateral, their interest rates are lower. On the other hand, unsecured business loans have a comparatively higher rate of interest.
- An unsecured business loan in Chennai issued by Kinara Capital can be sanctioned quickly as there is no need to assess any asset documents.
Types Of Unsecured Business Loans
Here is a quick look at the different types of unsecured business loans in Chennai:
- Working capital loan: This type of loan is acquired to meet the daily expenses of your enterprise, such as rent, employee salaries, electricity bills, etc.
- Asset purchase loan: A term loan is disbursed for a specific amount of time and is repaid in easy monthly installments (EMI). It is usually acquired when business owners want to invest in quality machinery or business infrastructure.
Some Notable Features
Here is a quick look at some standard features of an unsecured business loan in Chennai:
- They do not need any collateral.
- Your business enterprise should be in operation for a minimum of two years. This might change depending on the financial body that you approach.
- Unsecured business loans have flexible tenure spanning from a minimum of one to a maximum of five years. Some financial bodies can offer even longer tenures.
- The interest rates for an unsecured business loan depend on the financial history of the enterprise, the amount of loan required, and the annual business turnover.
NBFCs: Facilitating MSME Owners With Adequate Financial Support
NBFCs can help small business owners acquire an unsecured business loan in Chennai without getting into lengthy processes. Kinara Capital is one of the best NBFCs in Chennai, providing quick, easy, and collateral-free business loans to small business entrepreneurs. All you have to do is fill out their one-minute eligibility test to see if you qualify.
The eligibility check is based on your business vintage (minimum 2 years), whether the turnover is at least Rs 50,000, and if your business is situated in one of Kinara Capital’s serviceable pin codes. Currently, Kinara Capital has 32 branches across Tamil Nadu and Pondicherry that services more than 700 pin codes.
So, connect with a reputed NBFC and end your search to avail a collateral-free business loan in Chennai!
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