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Frequently Asked Questions About Business Loan
What is an unsecured business loan?
An unsecured business loan is a type of loan that does not require the borrower to provide any collateral or security against the loan. Instead, the loan is granted based on the borrower's creditworthiness, financial history, and ability to repay the loan. As there is no collateral involved, unsecured business loans typically have higher interest rates than secured loans. However, they are a popular option for small business owners who may not have assets to offer as collateral or do not want to risk losing their assets in case of default.
How will I get a business loan without collateral from Shriram Finance?
To be eligible for an unsecured business loan from Shriram Finance, your business should have been operational for at least three years and you must provide all the required documentation.
Why you should choose Shriram Finance for a business loan?
Shriram Finance provides secured and unsecured business loans with affordable interest rates starting from 10%* p.a. We are a reputed and trustworthy financial institution with a legacy of 50 years in the market. Shriram Finance is an ideal choice for all your business loan needs.
Is it possible to get a business loan online?
Yes, you can get a business loan online with Shriram Finance.
What are the minimum and maximum limits for a business loan?
Shriram Finance offers business loans starting from 1 lakh*. The maximum loan amount depends on your business’s needs and eligibility.
How to calculate my business loan EMI with an EMI calculator?
- Select the required loan amount using the slider. Choose the tenure of the loan.
- Get the appropriate interest rate for your existing business profile.
- Your EMI amount is calculated after you click the submit button.
What are the factors that affect business loan calculation?
The following elements determine the calculation of business loan EMI amounts:
- Loan Amount: This is the most important aspect and the foundation for calculating monthly loan payments. The EMI amount tends to change according to the loan amount.
- Rate of Interest:This is a critical component that is established by your income, credit score, business financial statements, and payback capability.
- Loan Tenure:The loan tenure has the greatest influence on the EMI amount because it is the period required to repay the total loan amount plus interest. An increase in tenure results in a lower EMI amount.
How is business loan interest calculated?
The EMI calculation formula is as follows:
[P*R*(1+R) (n*12)]
Where P is the principal amount borrowed, R is the annual interest rate, and N is the number of years. You can use our EMI calculator to rapidly determine your EMI amount for a given loan amount, period, and interest rate.
Which is better, a line of credit or a business loan?
If you require a large sum of money for a one-time purchase, such as equipment or property, a business loan may be the ideal option. A line of credit could be a smart option if you need an ongoing finance.
How to apply for a business loan?
You can apply for a Shriram Finance business loan online or visit the nearest Shriram Finance branch.
What is the maximum repayment tenure that one can opt for?
The maximum repayment tenure for a business loan would be 60 months.
How can I find out if I am eligible for a business loan?
On completing the online registration process, our representatives will evaluate your profile and revert back to you for a business loan.
Is collateral required for a business loan?
Shriram Finance offers secured and unsecured business loans. A collateral is required to obtain a secured business loan from Shriram Finance.
What kind of Business Registration Proof is accepted?
The following are the business registration proof documents that are accepted when applying for an unsecured business loan.
- R.C
- SSI
- GST
- Udhayam Registration
- FSSAI
Are there any cheque bounce charges applicable?
Yes, if a cheque bounces, the applicant would have to pay ₹1000 as a penalty.
Is it possible to close my business loan before the tenure ends?
Yes, it is possible to opt for pre-closure of a business loan subject to a nominal penalty of up to 4% on outstanding principal amount.
What would be the overdue charges for a business loan?
Overdue Charges are fees paid by customers who fail to pay their business loans on time. Shriram Finance charges 36%*p.a. as an overdue charge for a business loan.
What are the advantages of an unsecured loan?
The key benefits of an unsecured loan are that you need not pledge any of your assets to get financing.
How is an unsecured loan granted?
An unsecured business loan is offered to business owners based on the fulfilment of eligibility criteria.
What makes unsecured business loans beneficial?
Unsecured business loans are beneficial due to various reasons
- No collateral required
- Quicker and easier approval process
- Better credit terms
Can I use a business loan for any purpose?
Yes, you can use a business loan for any business purpose, such as financing inventory, purchasing equipment, or hiring staff.
How to get business loan up to ₹25 Lakhs?
To get a business loan up to ₹25 Lakhs with Shriram Finance, you can follow these steps:
- Visit the Shriram Finance website or nearest branch to apply for a business loan.
- Check the eligibility criteria for the loan. Shriram Finance requires a minimum business vintage of 3 years.
- Submit the required documents such as PAN Card, Aadhaar Card, Bank statements, GST registration certificate, and other relevant documents. If your loan application is approved, we will offer you a loan amount based on your business requirements and eligibility.
Easy & Quick Disbursals on Business Loan
