If you want to apply for a Hero Fincorp Business Loan without collateral or mortgage, you will just have to agree to a written consent that you will repay the borrowed amount. The lender faces a higher risk for these loans in terms of repayment, so, they may ask for a higher interest rate. Know about the different types of unsecured online business loans and the loan terms that the lender would stick to, to avoid defaults.
The unsecured or collateral-free loans include:
Â·Â Â Â Â Â Â Â Â Term LoanÂ
It is a type of unsecured loan that you can get for specific time duration and you have to repay it back in the form of EMIs (Equated Monthly Instalments) within that time.
Â·Â Â Â Â Â Â Â Â Working Capital Loan
You can apply for a working capital loanÂ to meet the day-to-day expenses of a business. The lender will approve it based on your creditworthiness and repayment capacity.
Â·Â Â Â Â Â Â Â Â Line of credit
This is a type of revolving Hero Fincorp Business Loan. It is a flexible loan in the sense that it consists of a predetermined amount that you can withdraw as per your need and repay back immediately or over a certain period of time. There is no compulsion of withdrawing the entire amount at one go. The lender would charge the interest as soon as you borrow an amount.
Â·Â Â Â Â Â Â Â Â Equipment finance loan
It is also called a machinery loan and you can apply for it to purchase new equipment/machinery, upgrade existing ones, etc. Equipment finance is used mostly by big business houses and those in the manufacturing sector. You can also get tax benefits on the loans. The interest rate, loan amount and repayment terms vary among different lenders.
These categories of business loans are one of the quickest ways to arrange for funds for your business but you have to meet the loan terms that usually include the following:
Â·Â Â Â Â Â Â Â Â You have to specify the category of business. For example, wholesalers, retail traders, professionals, B2B providers, manufacturers, etc.
Â·Â Â Â Â Â Â Â Â Disclose the number of years for which the business has been operational, for example, three to five years.
Â·Â Â Â Â Â Â Â Â Some banks or financial institutions may not have provisions for loans to start-ups.
Â·Â Â Â Â Â Â Â Â You should have robust creditworthiness and excellent financial history of the business, otherwise, most lenders would charge high interest on a business loan in India when you apply.
Â·Â Â Â Â Â Â Â Â Submit proof that the business is profit-making, projected cash flows for the next couple of years, its financial viability, etc.
Â·Â Â Â Â Â Â Â Â You may have to present the details of using the loan amount in the form of a business plan or some other document.
Â·Â Â Â Â Â Â Â Â Disclose the turnover of the business for the past few years.
You can meet the fund requirement for your current and future business needs by selecting a suitable Hero Fincorp Business Loan from among the different types of unsecured business loans available with them. Visit the website to go through the features, and loan terms carefully before you finalise the required loan amount.
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Hero FinCorp Limited
09, Basant Lok, Vasant Vihar, New Delhi â€“ 110057
Email Id: Corporate.Care@HeroFinCorp.com
Website – https://www.herofincorp.com/
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