Step By Step Guide To Get Online Business Loan Up To ₹50 Lakh Without Collateral

In today’s market, securing a business loan is crucial for growth. Traditional bank and NBFC processes can be cumbersome, especially for new businesses lacking collateral. Online business loans offer a solution, allowing you to borrow up to ₹50 lakh without collateral, saving time and enhancing efficiency. Discover how to apply for these quick, collateral-free loans and their requirements.

How to Get a Business Loan Up to ₹50 Lakh

Financial institutions facilitate ₹50 lakh business loans online without pledging assets, allowing easy access to financing. Here’s a step-by-step guide to assist you with the process:

• Research and Decide: Always research multiple lenders before applying for a business loan. Compare their business loan interest rates, loan terms, processing costs, any hidden charges and customer feedback.
• Eligibility: Every lender has their individual criteria for disbursing a working capital loan of up to ₹50 lakh. Ensure you meet those criteria before applying.
• Documentation: To secure a ₹50 lakh business loan, ensure you have all of the relevant documents, like financial statements, venture plans, KYC documents, and ITRs. Lenders require these documents to assess your eligibility during the loan application process.
• Online Application: Visit your creditor’s website to apply for a business loan online. Carefully fill out your details and upload all documentation required.
• Verification Process: After you submit your online business loan application, the lender will check and verify the details. The process entails a credit check and a financial review.
• Loan Approval and Disbursement: If your application fits the lender’s eligibility criteria, the loan will be approved. The ₹50 lakh business loan amount will be disbursed directly to your company’s bank account within a few days.

FlexiLoans is one such trusted FinTech organisation that facilitates quick approval and disbursement of quick business loans for MSMEs. You can effortlessly make your loan application through streamlined digital channels, whether you require MSME loans, small business loans, or other financial solutions. FlexiLoans has got you covered with tailored financial solutions and is your one-stop destination for business loans in India.

Who is Eligible for a ₹50 Lakh Loan?

The ₹50 lakh business loan eligibility varies from lender to lender. Some common requirements include:

• Business Vintage: The company must be operational for at least 2-3 years.
• Turnover: The company should have a sustained yearly turnover of ₹1 crore or higher.
• Credit Score: A decent credit score (650 or above) is required for business loan eligibility.
• Profitability: The company should demonstrate sustained profitability over the years.

Eligibility Criteria for Business Loan

• Age: Your age must be between 25 and 65 years old.
• Business Type: You can apply for ₹50 lakh MSME loan without collateral if your company is a sole proprietorship, partnership firm, private limited company, or public limited company.

Documents Required for Business Loan

The following documents are required when applying for a ₹50 lakh business loan:

1. KYC Documents: PAN card, Aadhaar card, voter ID, or passport
2. Business Proof: Certificate of Incorporation, registration certificate, or GST registration.
3. Financial Documents: Audited financial statements (balance sheet, profit and loss statement) for the last 2-3 years, bank statements (last 6 months).
4. Income Tax Returns: For the last 2-3 years.
5. Ownership Documents: Registration papers or lease agreements for the premises.
6. Photographs: Passport-sized photographs of the applicant.

How to Apply for a Business Loan?

Applying for a business loan online is easy. Follow these steps:

• Step 1: Visit the official website of the lender that provides online business loans.
• Step 2: Sign up and create an account under your name with your email address.
• Step 3: Navigate the loan application option and fill out your business loan application with your company and personal details, loan amount, and loan tenure.
• Step 4: Upload required documents like KYC, financial statements, and business evidence.
• Step 5: Double-check the information entered and submit the application.
• Step 6: Make sure to save your application number and reference number.
• Step 7: Keep track of the application status online using the reference number through the lender’s portal to check if your application has been approved or rejected.
• Step 8: Upon verification, if your application is approved, the ₹50 lakh business loan amount will get credited to your company account.

What Will Be the Monthly EMI for ₹50 Lakhs?

The monthly EMI for a debt of ₹50 lakh depends on the business loan interest rate and loan tenure. EMI is calculated using the following formula:

EMI = P x R x (1+R)^N / [(1+R)^N-1]

​Where:

• P is the principal loan amount (₹50 lakh in this case).
• r is the monthly business loan interest rate (annual interest rate divided by 12).
• n is the loan tenure in months.

For example, if you take a ₹50 lakh loan at an interest rate of 12% per annum for 5 years (60 months), your EMI would be approximately ₹1,11,000 per month.

FAQs

1. Can I obtain a ₹50 lakh business loan without collateral online?
   Yes, you can easily get unsecured financing of up to ₹50 lakh from multiple banks and NBFCs online. FlexiLoans is a digital lender that provides customised business loans with minimal interest rates on business loans and flexible repayment tenures.
2. What’s the minimal credit score for a ₹50 lakh business loan?
   A credit score of 650 or above is required.
3. How long does it take to get the loan disbursed?
   Once authorised, the loan is typically disbursed within 3-7 working days.
4. What is the interest rate on a ₹50 lakh business loan?
   Interest rates generally vary between 8.30% to 36% per annum, depending on the lender and the applicant’s profile. FlexiLoans’ interest rates start at 1% per month.
5. Can I prepay the debt before it matures?
   Yes, most lenders accept prepayment; however, there may be a prepayment charge.
6. Can women entrepreneurs apply for ₹50 lakh business loans?Yes, women can easily apply for an online business loan of ₹50 lakh. Many lenders prioritise women by reducing business loan interest rates and often quickly disburse the amount.

Conclusion

Securing online business loans of up to ₹50 lakh without collateral is an excellent option to invest in expansion, launching new ventures, or managing the current cash crunch. Many lenders now offer seamless digital processes allowing hassle-free loan for business acquisition, eliminating the need to visit a branch. You can easily secure the desired line of credit in just a few clicks, and the amount is disbursed directly to your company’s account. Now, your business ventures can take flight with easy access ₹50 lakh business loan funding.

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