Unsecured loans are boon for business owners who require financial support. They can avail of unsecured business loans without collateral and use the funds to cover their working capital requirements and long-term assets.  

There are certain things that business owners must check while applying for an unsecured business loan. Here is the checklist for borrowers: 

1. Application Process and Sanction Time: Borrowers should look for a lender to help their customers with a simple documentation process. Renowned lenders have reduced the complexity of the application process and sanctioned a loan with minimal paperwork following a 100% digital process. 
   
2. Loan Amount Offered: Business persons can efficiently manage inventory, expand their businesses, upgrade technology, build new teams, etc., using a loan amount. They should check the loan amount offered by different lenders. Business owners with convincing credit history and a high credit score can get a high loan amount, up to 50 lakhs.
    
3. Know Interest Rates: Borrowers’ creditworthiness governs loan interest rates primarily. A business owner’s credit score, the loan’s purpose, and the applied loan amount impact business loan interest rates. One should check the interest rates with different lenders to get credit at affordable rates.
   
4. Lender’s Credibility: Borrowers can conduct online research, browse through the lender’s website and social media handles, evaluate customer reviews, look at industry awards & ratings, and customer service.
   
5. Loan Tenure: Loan tenure should be flexible to allow loan repayment in affordable Equated Monthly Instalments (EMI). Borrowers need to choose a convenient tenure, between 12-48 months, to manage repayment without burdening their finances.

Thus, lending institutions have made it easy for business owners to avail of credit facilities online. Get the best business loan interest rates with this checklist.

Must Read: Get to Know Which Type of Business Loan is Right for You?