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collateral free loan

Collateral Free Loan

Loans are typically of two types. Large loans that require collaterals to be availed or smaller loans required to tide over a particular situation that does not require collateral. So, what is collateral? An asset of high and measurable value, against which a loan can be taken is known as collateral. Real estate, stocks, vehicles, machinery, insurance, etc. can be guaranteed when availing a loan from a financial institution. However, failure to repay the loan would mean that the borrower has to forget the asset permanently. The asset is then liquidated by the lender to recover the outstanding loan amount. A collateral-free loan is an unsecured personal loan that does not require the borrower to pledge an asset against the loan. This collateral-free loan can be availed for multiple purposes including travel, wedding, medical emergencies, or simply to start a business.

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Tough times don’t last forever, but tough men do. Yes, when loans are denied, people often tend to go dejected. But remember, there is always a ray of hope that shall drive the ambitious with a powerful force. Yes, heard about the Collateral free loans?! Here we tell you what it is all about and how you might use it.

The extraordinary popularity of collateral-free loans, particularly in the aftermath of the pandemic years, may have piqued the interest of ambitious business enthusiasts from all over the world. If the terms and conditions are favourable, with reasonable interest rates, this may be a chance to seize. Yes, this is the expectation of the goal-oriented few who are eager to step up. 

So, casting more light on this issue and comprehending the realities behind the collateral free loan may assist you in better planning your future. In this section, we discuss collateral-free loans in this part of the world.

What is Collateral Free Loan?

Understanding what collateral-free loan is crucial to comprehend the concept of a collateral-free loan. Collateral is defined as any asset having a particular financial value that is pledged to a banker or other financial institution to borrow money as a loan. 

Banks and financial organizations are customarily expected to lend money depending on the financial asset or collateral pledged against the loan offer. Both parties agree upon Terms and conditions to this financial arrangement. There are, however, several ways to borrow money without pledging anything in the form of collateral. That is a collateral-free loan.

Benefits of the collateral free loans

  • Collateral-free loans can be utilized to fund higher education, illnesses, and marriage expenses.
  • To apply for collateral-free loans, you don’t need to mortgage any assets- providing you with complete freedom and peace of mind.
  • A Collateral Free loan might be obtained for both personal and business purposes.

Collateral free commercial loans are unsecured and take into account your current revenue, operational income, and financial soundness to ensure that you can pay back your loan on time. Time taken is lesser for the collateral free loan scheme from Finnable.com           

How to Get a Collateral Free Loan?

As there are so many requirements to obtain a business loan from nationalized banks and other banks in India, thousands of applications are rejected for a variety of reasons. Every bank has its own set of rules to follow. They provide business loans to both large and small businesses if and only if the applications are flawless.

If there are any irregularities, the loan will be denied. The main aspect influencing the acceptance rate is the dependability of the collateral. If the loan officials at the top banks do not uncover financial records or property papers that entirely fulfill the criteria, they do not authorize the loan.

The process will take time further all until you are fulfilling the required criteria as it is expected as per the terms and conditions of the reserve bank of India. Now, to cross this hurdle and to save time in getting the loan approved, people resort to collateral free loan opportunities. They choose us to get collateral free loan. 

Finnable offers a convenient and simplistic solution that shall be tailor-made to fulfil your monetary expectations. However, unlike many other secured company loans, the collateral free loan may not yield large sums of money. Because of the unsecured nature of the loan, the lenders will establish lending restrictions. You can only enter into that bracket as determined by the lender. Finnable has a wide bracket that permits business owners to avail beyond 100 lacs. 

Most small and medium-sized firms don’t mind taking out this little loan since it helps them keep their cash flow in check. Typically, collateral-free loans are not large enough to serve as investment capital for medium-sized firms. As a result, the micro and small-size industries have the highest number of collateral free loan applications. 

They find it handy for their seasonal undertakings, such as updating their business agenda to fit the trends and current client expectations. For example, hiring additional equipment or a machine on the shop floor to satisfy seasonal demand is a very good reason to get collateral free loan

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Similarly, increasing inventory and funding for expansions into other markets will benefit your company quickly. They sweep maximum seasonal gains for their quarter in this manner, and then simply return the debt after their season. As a result, their credit score is also raised. As a result, it provides a chance to earn hay while the sun shines through seasonal profits while also improving your credit profile. 

Just fill out the online application form or talk to our support staff here, and you shall be through. We don’t ask for too many supporting documents. Our automation is advanced to do the scrutiny process fast and perfect. Experience of the Finnable experts comes in handy as well. At Finnable, services are exceptional and rate of interests are competitive for you to get collateral free loan. 

Factors that Affect Collateral Free Loan Eligibility

Nationality and age

  • If you are aged more than 21 and not more than 60, then you are good enough to apply for the collateral-free loan.
  • You should be an Indian national to get collateral free loan.

Credit profile:

One of the most essential collateral free loan eligibility factors is the credit history of the applicant. There are two types of credit profiles. Bad credit profile and good credit profile are the two categories. If you are not repaying in time, then you are going to decrease your creditability points. If you are repaying your loans in time, then you are going to increase your credibility points. 

Credibility points indicate to the official lenders who are regulated by the RBI that a particular person is a good or bad credit profile holder. Based on your points, your loan sanctions will be done on respective priority. So, if you are applying for a collateral free loan, you should naturally show your credibility to the lender; you should have a minimum credit score of 700.

  • You should be a person with a credit score of 700 plus. Your experience of yours must be relevant to the business that you are doing currently or to the business that you are going to rely on to repay the loan. Most of the time, the entrepreneurs will have to show the purpose of the loan too. If it is meant for any special equipment or machine purchase, then the necessary proofs must be submitted along with the application. This is how you get the approval done in a quick time.
  • MSME small loans that are being offered to those who are venturing into self-employment opportunities are also called collateral free loans. It is purely to encourage people to start new businesses and increase the overall productivity and hence the per capita income of the country as a whole. So, it is a great imitative for not only the borrowers but indeed for the entire country.

Documents Required for Collateral Free Loan 

A lot of applicants have a vague idea on what is collateral free loan and hence they don’t apply promptly, only to get their application delayed. So, it is better to keep in mind the following checklist while you are applying. 

  • Identity proof
  • Address Proof
  • Income proof
  • PAN card

Collateral Free Loan features

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4621 people have applied for loan in the last 24 hour
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Instant Personal Loan

Get Rewards

Timely EMI payments makes you eligible for a cashback of upto Rs. 200 per month. At Finnable we are the first in the industry to reward you to pay on time and improve your credit score.

Personal Loan Assistant

Get loans quickly

Apply for a personal loan in a few clicks by submitting only a few basic documents and get the loan money transferred in your account as quickly as 2 hours. The entire process is 100% digital.

High Loan Amount

High Loan Amount

Apply for personal loans with minimum documentation and get high loan amounts of upto Rs.10 Lakhs. The loan tenure can be anywhere between 6 and 60 months.

Get rewards

Personal loan Assistant

Please write to your personal loan assistant at makeiteasy@finnable.com for any support. We aim to provide you a seamless and hassle-free experience.

Get rewards

Get Rewards

Timely EMI payments makes you eligible for a cashback of upto Rs. 200 per month. At Finnable we are the first in the industry to reward you to pay on time and improve your credit score.

Instant Personal Loan

Get loans quickly

Apply for a personal loan in a few clicks by submitting only a few basic documents and get the loan money transferred in your account as quickly as 2 hours. The entire process is 100% digital.

High Loan Amount

High Loan Amount

Apply for personal loans with minimum documentation and get high loan amounts of up to Rs.10 Lakhs. The loan tenure can be anywhere between 6 and 60 months.

Personal Loan Assistant

Personal loan Assistant

Please write to your personal loan assistant at makeiteasy@finnable.com for any support. We aim to provide you a seamless and hassle-free experience.
Finnable team
4621 people have applied for loan in the last 24 hour
5/5
Over 5000 customers have rated us 5 stars in Play store

Personal loans can be used for multiple purposes- to fulfil your desires or meet urgent financial needs. This is why we bring you a range of products to suit your needs and desires.

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Collateral Free Loan FAQs

An unsecured personal loan that does not require any asset as collateral is known as a collateral-free loan.

Borrowers will need to submit their PAN card, Aadhar card, salary slip, and bank statement to avail a collateral-free business loan.

A collateral-free loan can be used for various purposes including travel, weddings, home renovation, medical emergencies, or simply to start a new business.

Finnable provides loans without collateral with flexible loan tenures and affordable interest rates. The loan amount is disbursed within 6 hours of document verification.

The process of applying for a collateral-free loan  through Finnable is quick and easy. 

Step 1: You can apply for a collateral-free personal loan either on Finnable’s website or app. 

Step 2: Register yourself and add the required personal and professional details to complete your profile.

Step 3: Upload the required KYC documents.

Step 4: Choose the type of personal loan.

Step 5: Enter the loan amount and the tenure.

On verification of documents, your collateral-free loan will be disbursed within 6 hours.

One of the biggest advantages of a collateral-free loan is that the borrower does not need to pledge any security against the loan amount. Further, the tenure of the loan without collateral can be from 12 to 60 months with easy repayment options.

  • Must be currently employed in a private or a public limited company
  • Must have more than 3 months of experience in the current organization and have a total work experience of more than 6 months
  • The monthly salary should be more than Rs 25,000
  • Salary should be credited to a bank account