Secured loans require the borrower to keep an asset like car, property, machinery, raw materials etc. as security to avail the loan. Secured loans in India are provided by banks at fixed interest rates. If the borrower fails to repay on time, the lender has full right to take the possession of the asset which was kept as security. Alternatively, people also go for unsecured business loans.
Steps to acquire a loan with security:
- The borrower should first ensure he meets the eligibility criteria as mentioned by the lender.
- Borrowers should have a good credit score.
- The borrower should be able to give an asset (machinery, raw materials, property etc.) as security.
- The borrower has to provide information like address proof, annual income, audited balance sheets for the last 3 years, and credit history with other required documents to the lender.
- The borrower should only apply for a loan if the loan repayment is possible in time.
- The borrower should be able to show a stable income to the lender to reassure timely repayment.
If you require a quick business loan, contacting NBFCs which provide unsecured loans is a better option since new businesses cannot go for secured loans, unsecured loans have a simplified application process, less of documentation, do not require any security and can be disbursed in just a few days.
Gromor finance provides unsecured loans at affordable interest rates which can be disbursed in 3 days or less. Visit Gromor to know more.