X

Banking & Insurance

Syndication & Funding

Collateral Free LOANs

COLLATERAL FREE LOANS

The loan provides by the bank without supporting any security is known as security free. A special type of collateral free loan scheme is available in India under the Credit Guarantee Fund Trust Scheme for Micro & Small Enterprises (CGTMSE). Under this scheme, the micro and small enterprises (MSEs) are eligible for collateral-free loans up to Rs.1. crore in values.

The biggest problem faced by these enterprises has been a lack of funding, resulting in limited opportunities for growth, working capital needs or scaling. Most MSEs typically start out with a service or product that may not earn revenue in the near future.

Required documents for collateral-free loans:- (All copies of documents should be self attested by the customer)

Private limited companies with SME/SSI registration can apply

Product development expenses

Procurement of computers

Tools machinery etc.

Share allotment proof.

Share purchase agreement.

Process for collateral-free loans:

Prepare a Detailed Project Report or Business Plan

Ensure your request is Bankable

Choose the Right Bank and Branch

Build a Rapport and Ensure the Banker understands your Business

Be Patient & CGTMSE Scheme Overview.

How we help with Collateral Free LOANs

Understanding

Before preparing the detailed project report our financial expect will work with you to understand your business and capital requirements.

Application Preparation

Based on our understanding of your start-up business and the information collected will complete a business plan for your startup.

Final Report

Once the proposal is completed you can provide your comments or inputs to finalizes and prepare the final business proposal and investor pinch.

Needs For Collateral Free LOANs

shutterstock_139246037

Term Credit

Short-term financing is a method of raising funds involving financial obligations that need to be repaid within a year or less. It is a fast and flexible way for companies to obtain working capital for their daily operations when their cash flow is insufficient.

shutterstock_139247903

Working capital

Working capital LOAN is given by banks for a working capital proposal like Holland of investments, receivables and built up of other current assets in a business capital, working capital or renewable every year.

shutterstock_139247630

Bank warranty

It is a promise that is made by a bank that liabilities of the party will be met by the bank in the event that party fails to fulfill contractual obligation bank warranty is typically requested will executing a large project.

team1

Letter of credit

It is the type of facility that a bank guarantying a buyers payment to a seller. If the buyer is unable to the payment on the purpose as per term and conditions of the transaction.

team1

Mortgage LOAN

These are the LOANs that are back to buy real property by putting a lean on the property being mortgaged.The funds generated from a mortgage loan can be used by the business for any purpose.