What is the difference between secured & unsecured Business Loans?

-

Business Loans come in two primary forms: secured and unsecured. The most significant difference between secured and unsecured Business Loans is the presence of collateral. It is an asset that the borrower offers to the lender to guarantee a loan. Usually, it is a residential or commercial property that the applicant owns. The lender may seize the collateral property and sell it if the borrower fails to repay the loan. So, the property is at risk with a secured Business Loan. However, no such collateral is involved in an unsecured Business Loan. Here are a few key differences between the two business loan types:



  • Collateral Requirement: Required for a secured loan, not required for an unsecured loan

  • Credit Score Requirement: Lenient for secured loans, but stricter for unsecured loans

  • Availability: Most financial institutions do not provide unsecured business loans, but secured loans are easily accessible to them

  • Interest Rates: Lower for secured loans than unsecured loans

  • Loan Amount: Higher for secured loans than unsecured loans

  • Repayment Terms: Longer for secured loans than unsecured Business Loans

Popular posts from this blog

How to Get the Best Personal Loan in Bangalore?

-
Image
Karnataka's capital, Bangalore, is home to more than 1 Crore of people leading a modern lifestyle. However, sudden financial crunches are typical, with increasing expenses. However, people handle them conveniently with the help of a personal loan in Bangalore . Personal Loans help finance urgent needs without pledging collateral, from big purchases to medical emergencies. The most attractive features include flexible repayment, fast approvals, minimal documentation, and competitive interest rates. Here is a stepwise procedure to apply for an instant Personal Loan in Bangalore and finance your capital goals without adding a burden on your finances. Start with the application process by filling out an online application form on the website of your preferred lending institution. Furnish the documents required to verify your details. Submit the application and wait for a loan offer. You can accept the loan offer and receive the amount in your savings account within a few hours. Pers
Read more

Impact of the COVID-19 Pandemic on Personal Loans in Bangalore

-
Image
The covid-19 pandemic was a tough time in different aspects, including physically, mentally, emotionally, and financially. Concerns over salary cuts and unemployment remained overhead as the economic slowdown prolonged amidst the lockdowns.  Bangalore was one of the key cities in India where people demanded external funding for their personal expenses. As a result, NBFCs offered Personal Loans in Bangalore to salaried professionals, who borrowed them for medical emergencies and other personal needs.  After the pandemic, several lending institutions have reduced their interest rates, simplified their eligibility conditions, and minimised their documentation requirements to make Personal Loans easily accessible to aspiring borrowers. Since digitisation became a norm due to social distancing norms, several NBFCs started supporting 100% digital loan procedures that borrowers can complete from the safety and comfort of their homes. Overall, the pandemic has drastically changed the face of
Read more

Why Personal Loans without CIBIL Check are Becoming Popular in Mumbai?

-
Image
Personal Loans are the most popular funding options that Mumbaikars seek to fund their various big-ticket expenses. However, most lending institutions demand high credit scores from loan applicants, which only a few can fulfill. That is why people started demanding specially designed Personal Loans for low-credit score individuals too.  Considering the high demand in Mumbai, many lending institutions offered ways to make poor credit score loans accessible in the city. Some common ways to get a  Personal Loan in Mumbai  with a low credit score include showing a decent income, reducing the debt-to-income (DTI) ratio, adding a co-applicant, or getting a guarantor. While Mumbai is a metro city with high living costs, many people seek loans in the city. However, not all of them have decent credit scores. That is why Personal Loans without CIBIL checks are becoming increasingly popular in Mumbai. However, an applicant must stay prepared to pay a higher interest rate with stricter eligibility
Read more