Business Loans

MSME's requirement to access easy and collateral free loans to grow business and the intent of financial institutions to service these demands is at its highest levels since the pandemic.

The total disbursements in MSME segment increased YoY by around 43% in FY22Q4, as per a report by TransUnion CIBIL as the total amount of loans sanctioned in FY22 stood at Rs 10.6 Lakh Crore. Also, disbursements in micro, small and medium segment increased YoY by 19%, 33%, and 38% respectively from FY21 to FY22.

Demand for MSME loans also picked up and grew to 1.6 times that of pre-pandemic levels. As per TransUnion CIBIL's report and financial experts, one of the main factors behind lending growth and demand for capital was due to an increased use of digital ways to borrow from financial institutions.

Another interesting fact that came out of a CRISIL report was that unsecured SME loans were likely to be the only segment in the NBFC's total AUM to touch the pre-COVID phase in the current financial year.

The above statistics indicate that there is an increased sentiment across lending institutions to give unsecured and collateral-free loans to MSMEs across the board to fuel expansion.

If you're also on the look-out to access much required funding to expand your business into new markets or product categories, this is the best possible time to look for easy, collateral free loans.

These are 3 easy steps to help you to get an unsecured, collateral-free MSME loan in a jiffy:

1. Check your exact requirement: Since collateral-free loans mean you don't have to give any security against the loan, ensure you are not inflating the loan amount and know the exact amount. Calculate your receivables and payments and take a well-informed decision before seeking an unsecured loan.
2. Improve your CIBIL score: Your business' CIBIL score is of great importance here. Since the financial institutions will be disbursing MSME loans without any guarantee, they need to have faith in your establishment's financials, which will also be determined by a healthy CIBIL score. Therefore, a CIBIL score of above 700 will help you in getting an unsecured loan faster as it will prove the credibility of your business.
3. Go online: Financial experts say many MSMEs are going online to access commercial loans. That said, most face difficulties with finding the right lenders, get loans at affordable interest rates and payment terms. To solve these teething worries, Business Loans by Tata nexarc , a disruptive, digital business loans marketplace, has been helping MSMEs get offers for collateral-free loans in just 5 minutes!
In addition to making the unsecured loan amount available to the applying MSMEs in 3-4 days, Business Loans also goes a step- ahead, by helping MSMEs find the correct match of a lending institution basis their requirements, without having to go through the hassle of filing-out lengthy, complicated forms and unnecessary paperwork. All that this platform needs to start working on an MSMs request for an unsecured, collateral free loan, is a WhatsApp message from the MSME business owner stating the requirement. How easy is that!

So, these 3 simple steps including seeking the right funds, through the right platform, will help you get easy, collateral-free MSME loans within minutes.

India is one of the fastest- growing economies in the world. Despite the global slowdown, India is witnessing resilient domestic demand. In fact, according to a report, India is likely to become the third largest economy in the world by 2029.

What does this mean for MSMEs?
The growth of Indian economy, without a doubt, will create huge potential for MSMEs to expand. The demand and opportunities in several high growth industries, including automobile and auto component, construction, food processing, aviation, chemicals, and manufacturing, will enable emerging businesses to expand their operations, enter new territories, innovate, hire skilled workforce, adopt best practices, etc. This will help business owners to fuel their growth and contribute much more to India's GDP as well.

Expansion and challenges
For instance, with better export opportunities, a leather manufacturer will be able to expand his/her manufacturing facility, and tap into international markets, or with the demand in the housing sector, MSMEs involved in construction and infrastructure can increase clients, and provide goods and services.

Every business owner has a vision to grow, but one barrier which keeps them from generating desired revenues is capital crunch. Limited cashflow restricts them to capture growth opportunities denting their expansion plans and margins significantly. As per an IFC report in 2021, the total addressable credit gap in the MSME segment stood at Rs 25.8 Trillion.

Role of business loans
Therefore, to the rescue of these cash deprived MSMEs comes the digital lending landscape. By seeking MSME loans via digital platforms, business owners can bridge the gap between their vision and growth of the company, by accessing the required funds from multiple such platforms within short durations, without the hassle of complicated paperwork. Right loan products can enable MSMEs to meet immediate expenditure, buy equipment, manage inventory, increase working capital and much more.

For instance, consider Business Loans through Tata nexarc. The online marketplace provides collateral-free loans of up to Rs 30 Lakh. If you are looking for an urgent requirement, Business Loans provides loan offers in 5 minutes* from various lenders, and disbursal in 4 days.



There are a few advantages here such as quick disbursal with minimum documentation, options from various lenders, unsecured loans, and affordable interest rates.
For more details, you can check their EMI calculator as well.

Digital lending
In this digital era, seeking loans is easy. Just with one click you can compare options and seek loans. In a nutshell, business loans or MSME loans are beneficial for a business, individual and country's growth.