How to Apply for a Business Loan with An Online Lending Company?

  Nov 28, 2018

Business Loan

Running a business is one of the biggest challenges in life. You have to ensure the business growth and profitability as well while managing its different aspects. It requires you working overtime as well as traveling all over the world in order to meet the vendors and buyers. Moreover, you also invest your own savings to get the small business started and kept running. But after a certain time, you would start feeling a paucity of funds as your personal finances would have exhausted and the payments have been delayed from the debtors.

You, for the obvious reasons, cannot stop your small business activities and wait for the money to be received from the debtors. You have to arrange enough money to keep the small company growing- invest in the business and expand infrastructure. Otherwise, you might lose out the advantage to your best competitors. There are various sources of finance available at your disposal but the decision that you have to take is that which product would meet your requirements in the best possible manner. The best option in these circumstances for you is to avail an unsecured business loan from any of the various financial institutions operating in India. These financial institutions offer specialized business loan products for various business-related requirements of yours.

About Business Loans

A business loan is a category of loans that is mean for business owners only. Different types of business loans are offered by financial institutions to suit the various requirements that business owner might have, such as machinery loan, working capital loan, business capital loan etc. However, there are two major categories for business loans:

  • Secured Business Loan: A secured business loan is the one which is offered with collateral. A business owner can only avail this type of loan if he offers a collateral in terms of the asset (having some monetary value). The lender can seize the collateral in case the borrower defaults the business loan. Since the loan is secured with collateral, it is called a secured business loan. A secured business loan is usually offered by the banks. A business loan who does not have collateral could not avail a secured or collateral business loan.
  • Unsecured Business Loan: An unsecured business loan is the one which is offered without collateral. The borrower has is not required to offer an asset to back the loan. And since the business loan is not secured with the collateral, it is called an unsecured business loan. A collateral-free loan is an ideal funding option for small business owners who cannot offer a collateral or are not willing to take the risk of hypothecating their asset. A business loan without security is offered mostly by NBFCs and online lending companies. These business loans are specially designed for MSMEs to help in their growth.

The money availed under business loan must be used for business-related purposes only. And it has to be repaid in easy EMIs as per the business loan agreement signed between the borrower and lender. Out of the various financial institutions operating in the market, online lending companies have emerged as the preferred choice for small business owners looking for urgent funds to meet their requirements.

About Online lending companies

Online Lending Companies are a special type of NBFCs who conduct their operations through online channels, such as a website or mobile App only. You can access complete information about various types of business loans on their website or mobile App as well as access useful tools related to the business loan, such as business loan eligibility calculator to help you make an informed decision.

Online lending companies follow a unique paper-less process wherein you only have to provide the scanned copies of your documents to process your business loan application. If your profile meets the requirements specified by the lender, it will only take a few days to process your application. They follow a holistic credit evaluation process to ascertain your eligibility for a business loan which is used in combination with the CIBIL.

If your annual turnover in the previous year was Rs. 10 Lakhs or more, you are eligible for an unsecured business loan of up to Rs. 5 Lakhs with a flexible repayment tenor of up to 24 months. The rate of interest chargeable varies between 23% and 28% on reducing amount depending on your credit profile. There is also the option to pre-pay the loan amount without incurring any additional charges.

How to apply for a Business Loan?

The answer to your question as to “How to apply for a business loan” with an online lending company is quite simple and straightforward. These companies follow an easy application procedure which you have to complete online. Here are the various steps involved in applying for a business loan with an online lending company:

  1. Log on to the website or mobile app of the lender of your choice. Check the various business loan products offered by them and select the one which meets your requirements perfectly.
  2. Now, use online tools such as business loan eligibility calculator to ascertain your eligibility amount and the repayments that you need to make. This will help you make an informed decision.
  3. Now, start the online application process by providing your personal details along with the required financial documents.
  4. Upload the PDFs of the documents required by your lender. If required, you can also ask for document pick-up service. If any additional documents are required, the same would be intimated to you and you must provide that.
  5. If your profile meets their requirements, your application would be processed in a few working days. Later on, you will be sent the business loan agreement which you need to e-sign and submit back with the lender.
  6. Now, within a few working days, your business loan amount will be credited in your account and you will receive the copies of all relevant documents.

With such an effortless process of applying for an unsecured business loan with an online lending company, it is no surprise that business owners all over India are flocking towards them for their funding requirements.

How to Apply for a Business Loan with An Online Lending Company?


Rahul has over 7 years of experience in digital marketing. Prior to joining , Rahul worked at Content Mart and was instrumental in ensuring a 110% year on year growth of the business. Before this, he worked at Jabong as a part of the International Business Expansion team which focused on Overseas Markets. In the initial phase of his career, he worked with auto portal where he achieved a 65% traffic scaling. Rahul holds a Bachelors degree in Technology.

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