Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Business > How to get a Startup Business Loan without Collateral

Loan for Business

How to get a Startup Business Loan without Collateral

How to get a Startup Business Loan without Collateral

Having a brilliant idea for a startup is not enough. One of the biggest challenges entrepreneurs face is the lack of funding or capital to turn their idea into reality. Taking a business loan then becomes a viable option for them. 

However, most new startups do not have assets such as property or shares to offer as collateral to get a loan from a bank or NBFC. However, this does not mean they cannot get a loan. Entrepreneurs can get a loan even without collateral. 

There are a few things they can do to improve their chances, though. Here’s how to get a startup business loan without collateral:

Improve your credit score

If you want to get a startup business loan, you will need to have a decent credit score. A score of 750 and above is considered healthy and greatly improves your chances of getting a business loan approved, as well as negotiating lower interest rates. You can do so by using your credit cards to pay your bills, settling your dues in full before the due date, avoid taking too much credit at a time and not closing unused credit cards, among other things.

Additional Read: Credit Score for Business Loan: Know why it is important while availing a Business Loan

Clear other pending debts

If you are repaying multiple loans at the same time, chances are a new loan request by you will be denied. For example, if you already are repaying a car loan and a home loan, lenders will be less inclined to service a loan for business, as they would not be confident in your ability to pay back the money on time.

Create a strong business plan

Business Plan to get a business loan without collateral

You need to make a strong case for your business plan to get a business loan without collateral. You must present a comprehensive plan that describes your idea, market opportunity, process, financial projections, and more. This helps instill confidence in lenders; they note that you have done your research, which helps create a positive impression.

Additional Read: Startup Business Loan: Know how to get a business loan for startup in India?

Thoroughly evaluate requirement

Ask for only as much as you need. Though you may want to get your hands on as much capital as you can to give flight to your ambitious plans, think about how you plan to repay a big amount. Estimate right and apply for a loan that you can service. Asking for a huge amount without justifying the need is a sure way to have your application rejected. 

Take an unsecured business loan

Taking an unsecured loan is the easiest way to finance business because they are easy to get and require no collateral. Keeping in mind the challenges a startup has to face, Tata Capital offers customized, hassle-free, unsecured business loans to fledgling businesses. The easy and swift application process, coupled with a higher threshold for eligibility, starting at Rs 5 lakh and going all the way up to Rs 75 lakh to supplement any and every business need.  You can service the loan via stress-free, structured business loan EMI options. This means you can stop worrying about finance and focus on growing your business.

Apply Now

Give Your Business the Right Boost: Apply for a Business Loan Today

Apply now
Popular Searches
business idea udyogini scheme hsn code full form low investment business ideas top 10 most successful businesses to start transport business import export business in india mineral water plant cost collateral free loans
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches
Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.