After meeting the necessary eligibility criteria and submitting all the necessary and complete documents, an unsecured loan is considered to be one of the fastest ways of securing a loan. Let us first compare to its major counterpart, secure loan. Usually, the lender may take around 10 to 15 days to approve the best small business loans. In some instances, they may even approve it in less than a week’s time.
What can you do to speed up the process?
Yes, you read that right. To some extent, you can control how fast you can avail the loan. To ensure you get your unsecured loan as soon as possible you can refer to the following points:
- Maintaining a good credit score: Your credit score can play a big role in speeding up your loan processing time. Since for unsecured loans they do not require any collateral, your credit score acts as an indicator to know whether you are capable of taking up and following a financial commitment. When it comes to unsecured loan your credit score acts as the crux of all the eligibility criteria. The better your CIBIL score, the faster your loan processing time will be. A good score reduces the risk the lender has to take in order to sanction your loan. If you have a bad CIBIL score, your application for the loan may even get rejected.
- Compare some of the best small business loans online: If you are too busy to physically approach a lender, just search online and you would be linked to companies that lend unsecured small business loans through the internet. Compare the various financial institutions that provide unsecured loans. Some of them might have faster processing time than the others. Do your research well before opting for the final one?
- Submit Aadhar card as identification proof: During the loan application process, the segment that takes maximum time is usually verification. Aadhar card is a KYC document that is linked to your address, phone number and all other imperative details that are of utmost importance for the lender. Providing aadhar card will help lender attain the required details much faster as it serves as a one-stop Identification solution.
- Submit Correct and Complete documents: By submitting the required documents you ensure a minimalized processing time for your business loan. You should be careful while filling in the application form with complete and correct details. Submit all the required documents such as your bank details, financial statements, GST certificate, ITR, etc. on time.
Unsecured business loans prove to be more convenient when compared to secured business loans.
For small business loans needing financial assistance, unsecured business loans make a great deal with collateral-free requirements, minimum documentation and reduced paperwork, comparatively smaller loan tenure and quick disbursals with fastened process.
In order to aid the process, the organizational focus should be on maintaining a justified credit history or CIBIL score. Submitting Aadhar card, GST certificates, Financial statements, KYC Document, as it holds the information required i.e. address, phone number, and other details.
By being prepared and going about it the smart way you can save yourself a lot of time and unnecessary complications. Fast processing time is one of the best advantages of an unsecured loan and knowing how to fasten this process serves as the best advantage to you and your business.