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How to Get a Collateral-Free Loan in India?

The rise of small-scale business enterprises has pushed the Finance Ministry of India to decide on a collateral-free loan scheme to provide an excellent financial resource for these businesses.

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The rise of small-scale business enterprises has pushed the Finance Ministry of India to decide on a collateral-free loan scheme to provide an excellent financial resource for these businesses. As a result, such eligible enterprises’ business owners can avail loans from banks, fintech companies, or NBFCs.

1. Banks:

The Banks serve as a leading authority for secure as well as non-secure loan sanctioning. Several banks are belonging to both public and private sectors that are authorized for collateral-free loan disbursement.

The banks in India that can be sought for availing a collateral-free loan by business owners include the leading names such as Axis, Bank of Baroda, State Bank of India, Fullerton India, State Bank of Hyderabad, UCO Bank, HDFC, Kotak Mahindra Bank, and ICICI bank, etc.

As per 2014, the list of financial institutions sanctioning collateral-free loans in India has reached the number of around 133 banks that comprise the Private, Public, and Foreign banks. The business owner may also contact the MSME helpline to gather further knowledge regarding the affiliated institutions related to collateral-free loans.

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2. NBFCs:

Another authority related to collateral-free loans is the Non-Banking Financial Corporations in India. If an individual business owner finds it difficult to allocate the banks to avail of a collateral-free loan, then he/she can turn to an NBFC for financial assistance.

The top NBFCs operating in India that provide a collateral-free loan are Muthoot Finance, Bajaj FinServ, Mudra, Indifi finance, or Lending kart finance.

3. Fintech Companies:

Such financial institutions also provide a collateral-free loan to the small-scale business owners. Examples of such companies include MoneyTap, Capital Float, Mobikwik, Lendingkart, Neogrowth, InstaKash, Shubh loans, etc.

A business owner can go for such financial technology companies to seek advice or claim a collateral-free loan. Such financial institutions are garnering the attention of many due to their ease of use and online facilities.

Feature Banks NBFCs Fintech company
Rate of interest 11%-19% 11.5%-20% 16%-22%
Additional Charges 0.75%-1.5% Nil 1%-2%
Loan period 5 years 5 years 3 years
Loan application approval time 30-35 days 20-25 days 3 days

4. How can one avail of a collateral-free loan in India?

If a business owner is interested in applying for a collateral-free loan, then they are in luck because the procedure of applying for these loans is as easy as it gets.

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  • First, the business owner should decide the lending institution that they wish to seek the fund from. The available options include NBFCs, Fintech companies, or Banks.
  • Next, the business owner must go through all the eligibility criteria set by the lending institutions for the loan allotment process.
  • If the candidate fulfills the eligibility criterion, then they can go to the lending authority to request the application form for a collateral-free loan. In case the lending institution is a bank or fintech company, the candidate can go for an online application after registering at the official website.
  • Next, the business owner must complete the loan application form by submitting the credentials relating to the policy or the candidate that is asked to be filled.
  • After completing the application form, the candidate can attach the required policy documents and pay the administrative fee (if any).
  • This is followed by a loan application approval process that may take 4-5 days.

5. Documents required

The documents that are needed to complete the application form for a collateral-free loan include:

  • Candidate’s age-proof: The documents like Aadhaar card, Voter ID, or driving license are considered valid for this purpose.
  • Candidate’s residential proof requires either the bills of amenities like electricity or PAN card or Voter ID.
  • The complete set of KYC documents
  • Proof of business corporation
  • Candidate’s ITR of the previous financial year.

6. Pre-requisites for eligibility to claim a non-collateral loan:

A business owner who wishes to procure a collateral-free loan is advised to go through any policy’s eligibility guidelines before deciding to apply. This is because a failure to fulfill these eligibility criteria may lead to the loan application’s disqualification.

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  • The candidates considering applying should be within the age bracket of 21 years to 65 years.
  • The disbursement of a non-collateral loan is dependent on the applicant’s business portfolio. Thus, the performance of the business shall be the deciding factor for loan approval.
  • Most of the lending institutions mandate that the applicant’s business for which the loan is requested has to be functioning for at least three years for an application to be approved.
  • The business owner’s credit history also influences a collateral-free loan. The application process involves a detailed account and inspection of the applicant’s credit score. Whether one is applying for the loan in the name of the business or their name, a healthy credit score will help get the loan application approved.

A collateral-free loan is a beneficial tool for small business owners. It helps boost the business’s function and give financial support to the business owner that helps keep the business up and running. These loans are convenient to avail of and provide short-term financial aid to the business owner.

Any SME can utilize the benefits and merits of a collateral-free business loan. Not only that, but these loans can also be availed for use for other purposes such as education.

7. Collateral free loans other than MSME loans:

Although the non-collateral loans are majorly business-oriented, there are other types of non-collateral loans that fulfill some purposes other than the business investments, and these include:

  • Personal loan
  • Credit card loan
  • Education loans
  • Instant loans

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Top 5 Tech Blog Earnings That Will Amaze You

Blogging requires minimal business investment and is often started of passion. These top 5 tech bloggers teach us how to make money out of blogging.

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Rules to Fictional Blogging - TwinzTech Blog

Blogging has now branched into different variants like traditional blogging, third-party platform blogging, and social media micro-blogging.

To stay in the present, people from different walks of life are indulging in tech blogs. We have analyzed the top 5 tech blogs’ key success points to motivate more tech bloggers.

Top-Earning Tech Blogs that are Worth your Time

Blogging requires minimal business investment and is often started of passion. These top 5 tech bloggers teach us how to make money out of blogging. With so many successful tech bloggers across the globe, the downsides of blogging are hard to find.

1. Engadget

Earnings per year – $47.5 million

Engadget publishes content on a vast range of relevant tech topics. You will find content on robotics, wearables, search engines, smartphone games, and whatnot!

Founded by Peter Rojas (a former editor of Gizmodo) in 2004, Engadget has estimated annual earnings of $47.5 million, making it to the top of the tech blog posts table. Peter Rojas, however, left Engadget in 2008. AOL acquired Engadget in 2011, and the famous Verizon Media currently owns it.

Engadget uses affiliate links within its product reviews as a monetization option. You will find these links as a call-to-action button labelled as ‘Buy Now. The main navigation of Engadget’s product reviews gives due prominence to affiliate revenue-generating links.

2. Wired

Earnings per year – $30.7 million

Launched by Louis Rossetto and Jane Metcalfe, Wired is currently owned by Condé Nast. Wired.com was formerly known as HotWired and Wired News. It was founded in October 1993 and later split into a magazine and website in the late ’90s.

Lycos bought the website, which Condé Nast later purchased on July 11, 2006. To do away with the declining profits, the two branches were again reunited.

Wired.com (the website) is paywalled, which requires users to make a payment for accessing more than four articles each month.

Wired hosts various technology blog content on new products, tech businesses, video games, cameras, security, and the like. The website uses affiliate links and other commercial revenue-generating tools to boost its earnings.

This website is ideal for tech professionals looking for the latest gadgets, reviews, or tech discoveries.

Top 5 Tech Blog Earnings That Will Amaze You

3. Mashable

Earnings per year – $30 million

Founded by Pete Cashmore in 2005, Mashable is a tech and media blog. Pete Cashmore is a web consultant aged just 19-years from Aberdeen.

Mashable covers a broad spectrum of tech topics. This blog has learned what commercial revenue generation method works the best for itself. Mashable teaches fellow bloggers to add elements that drive revenue in their blogs.

Mashable Deals is the monetization section of this blog post that features reviews, deals, product roundups, links, and several other commercial contents.

Mashable is regarded as one of the most influential tech blogs on the internet now! If you want to catch up with everything happening in the tech world, then Mashable is your go-to site.

4. TechCrunch

Earnings per year – $22.5 million

Founded by Keith Tears and Micheal Arrington, TechCrunch has estimated annual earnings of $22.5 million. TechCrunch received global recognition owing to its advanced tech content and blogs. If you want genuine reviews of tech products, then you must check out TechCrunch.

TechCrunch focuses primarily on global tech giants like Uber, Amazon, Alphabet, and other such companies. TechCrunch is currently edited and owned by Mathew Panzarino.

You will also find many articles related to reviews on the latest tech products, news on tech discoveries, pricing of the latest gadgets, and content on new gadget developments.

TechCrunch ran a famous database, Crunchbase, between the period of 2007 to 2015. However, Crunchbase has a separate entity now.

5. Gizmodo

Earnings per year – $4.8 million

Founded by Peter Rojas in 2002, Gizmodo is a popular tech blog. Gizmodo also covers the content on design, sci-fi, and science. This online platform serves various parts of the world, including the UK, Brazil, and Japan.

Gizmodo is currently owned by the G/O Media and is edited by John Biggs. Gizmodo offers stiff competition to the top tech blog platforms like Engadget.

It provides in-depth reviews on the latest gadgets, smartphone designs, and laptops. Gizmodo uses sponsor ads to monetize its blog posts. It has an estimated visit of 22 million per month with a domain authority of 93.

Closing Thoughts

The primary source of revenue for most tech bloggers is direct advertisements and affiliate links. Technology-related blogs drive a vast audience base which further boosts their income.

Moreover, tech reviews allow tech bloggers to add affiliate links as CTA buttons. You can go through these top 5 tech blogs to learn how to commercialize your tech blogs.

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