Collateral is an asset, having a measurable financial value, that you can borrow against. Assets like real estate, machinery, vehicles, even stocks and shares can be pledged to avail a loan. However, if you are unable to repay the loan, the lender has the right to assume permanent possession of the asset and liquidate it to recover the outstanding amounts.
On the other hand, collateral-free loans do not require you to pledge any asset as security. It brings peace of mind and opens up unlimited opportunities. One can avail collateral-free loans for various purposes. Such loans can help you meet business goals as well as personal needs like higher education, medical emergencies, marriage expenses, etc.
Bajaj Finserv extends collateral-freebusiness loans at competitive interest rates and flexible repayment options.
Collateral Free Business Loans Features and Benefits
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Flexibility
Collateral-free Business Loans from Bajaj Finserv are powered by the Flexi loan feature. This unique feature enables businesses to borrow according to their needs and repay as per their cash flow. This facility also provides you the choice to pay only the interest amount as EMI, while repaying the principal amount at the end of the loan tenor. -
Financing up to Rs.30 lakh
Flexi loan limit for collateral-free Business Loans can go up to Rs. 30 lakh. Use this EMI calculator for computing the EMI of your collateral free loan.
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Pre-approved offers
If you are an existing Bajaj Finserv client, contact us for a pre-approved loan offer. -
Flexible tenors
Collateral loans have a tenor of up to eight years, enabling you to achieve your financial goals without being burdened about immediate repayment. -
Online account access
Access your loan account from anywhere at your convenience, with Experia, our customer portal.
Documentation and Eligibility Criteria
Eligibility criteria for availing a collateral-free Business Loan:
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Age between 22-55 years
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Your business should have a vintage of at least three years
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Your business should have filed Income Tax returns for at least the previous year
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Your business should have its previous year's turnover duly audited by a CA
Collateral Free Business Loan Interest Rate and Charges
Bajaj Finserv brings transparency and clarity about loan rates and charges. The following are the current charges:
- Types of Fees
- Applicable Charges
- Rate of interest
- 18% onwards
- Processing fees
- Up to 2%
- Loan statement charges
- NIL
- Interest & principle statement charges
- NIL
- EMI bounce charges
- Rs.2,500 for every bounce
- Penal interest
- 2.00% p.m
- Secure fee
- NA
How to Apply for Collateral-free Business Loans
Online Application
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Click here to apply
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Fill in the details and click Submit
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Our representative would contact you with your pre-approved offer
Through SMS
Our representative would contact you with your pre-approved offer
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SMS ‘BL’ to 9773633633
How does a business loan EMI calculator work?
A business loan EMI calculator helps you know the monthly instalments you have to pay, thereby helping you plan your repayment with ease.
Enter the below on the EMI calculator:
- Principal (loan amount)
- Tenor
- Rate of interest
E = P x r x (1 + r) ^ n / [(1 + r) ^ n - 1]
Here,
- E is the EMI.
- P is the principal or loan amount.
- r is the rate of interest (calculated monthly.
- n is the tenor (calculated monthly).
You have a business loan of Rs. 20 Lakh at 12% rate of interest for 4 years. As per the above formula, your EMI will be:
E = 20,00,000 x 12%/12 x (1 + 12%/12) ^ 4 / [(1 + 12%/12) ^ 4 – 1]
E = 52,668
Hence, your EMIs will be Rs. 52,668.
How to calculate your EMI using an unsecured business loans calculator?
A Business Loan EMI Calculator is simple to use. All you need to do is enter the loan amount, tenor (in months) and the rate of interest, and you’re done.
What is a business loan EMI?
You can repay your Business Loan in various ways. One of the easiest methods is to pay your loan through an Equated Monthly Instalment (EMI), where your loan gets divided into equal fixed sums that are paid on a monthly basis until your loan has been fully repaid. An EMI consists of the loan’s principal amount and the interest accrued on it.
This repayment method makes it easy for small businesses that operate on tight cash and want to fund expensive purchases like equipment, plant and machinery, etc. but don’t have enough liquidity to pay up-front for such costs.
What is an EMI calculator for a business loan?
A small business loan calculator helps you calculate your monthly EMIs on your business loan.
This calculator helps you to predetermine the amount need to pay at the end of every month, helping you to opt for a loan amount that matches the short-term plans of your business and thus, facilitating your cash resources planning.
What is the interest rate of a business loan?
Bajaj Finserv offers low Business Loan interest rates, which make your EMIs affordable and help you repay the loan comfortably with lesser chances of defaulting.
The following is the interest and other charges on business loans:
| Type of charges | Rate |
|---|---|
| Rate of interest | 18% per annum onwards |
| Processing fees | Up to 3% on the principal |
| Penal interest | 2% per month |
| Bounce charges | Up to Rs. 3,000 (Inclusive of taxes) |
| Document processing fees | Rs. 1,449 with applicable taxes |
| Outstation collection charges | Rs. 65 with applicable taxes |
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