Reasons Why Unsecured Business Loans Are Gaining Popularity Among Businesses

Posted on Friday, October 20th, 2023 | By IndusInd Bank

To grow sustainably, businesses of all sizes and types require easy access to finance. Unsecured business loans are ideal for small businesses and startups to raise capital without pledging collateral. These loans are marked by high loan amounts, fast approvals, flexible repayment terms, and an easy application procedure. IndusInd Bank provides unsecured business loans up to INR 50 lakhs with a repayment tenure of up to 48 months, which can be used to meet various business requirements.

Businesses of all sizes and types require easy access to finance for growth and sustainability. Traditionally, it has been challenging for businesses to secure a loan without pledging collateral to lenders. Unsecured business loans have stepped in to solve this issue. These loans eliminate the need for businesses to pledge collateral altogether, facilitating inclusive access to capital for businesses of all kinds.  They are thus being preferred over traditional secured loans. Let’s take a deeper dive into the reasons behind the burgeoning popularity of unsecured business financing.

1. Higher Loan Amounts

One of the biggest reasons startups struggle to grow is the lack of adequate funding. If a business is not able to raise enough funds to expand, it is staring at imminent failure. Fortunately, unsecured business loans make it easy for businesses to access the funds they need in a speedy manner. Additionally, they offer adequate amounts for businesses to scale operations.

At IndusInd Bank, you can avail of a business loan amount as high as INR 50 lakhs to meet the various needs of your business.

2. Fast Approval Time

Just as adequate funding is critical to the growth of a business, so is timely access to the required capital. If a business is not able to raise adequate funds in time, it may flounder down the road. Today, unsecured business loans feature speedy processing time, making way for businesses to get timely access to funding.

3. No Collateral Requirement

One of the simplest reasons behind the popularity of unsecured business loans is that they do not require borrowers to put up any collateral. This can be a significant advantage for fledgling businesses that wish to grow rapidly and do not have any valuable assets to pledge.

4. Flexible Repayment Terms

Unsecured business loans offer flexible repayment terms, becoming financially easy on borrowers. IndusInd Bank offers flexible business loan tenures stretching up to 48 months. Borrowers can choose a repayment schedule that aligns with their budget and expected cash flows.

5. Flexible Use of Amount

Unsecured business loans can be used for various purposes, such as business expansion or new acquisition, working capital requirements, inventory & equipment purchase, R&D, hiring, and marketing. The bank makes no restriction on the end-use of the loan amount which can be used howsoever the business owner deems fit for their business.

6. Easy Application Procedure

These loans feature a relatively simple application process as the lender does not need to assess the value of any collateral. At IndusInd Bank, you can apply for unsecured business loans online in a few simple steps. Alternatively, you can visit the nearest IndusInd Bank branch.

Unlock Rapid Growth with IndusInd Bank’s Unsecured Business Loans

To promote the success of your business, you must invest in sustainable growth. With an unsecured business loan, you enjoy the freedom to take a calculated risk and invest in your business’ long-term growth. IndusInd Bank supports the aspirations of businesses looking to scale with easy access to funding. Its unsecured business loans can be used to fulfil requirements such as:

• Working capital
• Expansion and acquisition
• New inventory
• Salary
• Short-term cash needs
• Vendor payments
• Equipment purchases
• Bridge funding

IndusInd Bank offers a streamlined application process for businesses seeking prompt, hassle-free finance solutions to fuel their growth. Apply for an unsecured business loanonline through the IndusInd Bank website or visit your nearest branch today.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.