Check your eligibility
What These Loans Fund
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Working capital and inventory fund...
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Business expansion and new premise...
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Equipment and machinery purchase
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Hiring and payroll during a growth...
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Marketing and business development...
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Bridging receivables gaps
Who Can Consider This Loan?
- Business vintage, commonly two to three years of operations
- Minimum annual turnover set by lender and segment
- Profitable operations, or a demonstrable path to profitability
- Clean banking conduct with no cheque returns
- Promoter credit scores, which lenders assess alongside the business
- GST registration and filing compliance, where applicable
What May Not Be Funded?
- Speculative investment and trading in securities
- Processing fee, typically one to three per cent
- Businesses below the lender's vintage or turnover threshold
- Amounts beyond what cash flow supports
- Repayment of promoter loans, at some lenders
Always check the sanction letter before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading loans companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced loans professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
An unsecured business loan funds an established business without collateral. The lender assesses turnover, margins, banking conduct and vintage rather than security, which is why the rate sits well above a secured facility.
Three things move the rate more than anything else: how long the business has been operating, how consistent the bank statements look, and whether GST filings and financials tell the same story. A business with clean banking conduct and matching returns is priced very differently from one with irregular deposits and mismatched filings.
The most useful preparation is therefore documentary rather than negotiating. Six months of tidy banking, filings that reconcile, and financials that do not need explaining will save more than any conversation about rates.
Who should consider it
Established businesses with two to three years of operations needing growth capital, working capital or equipment funding. Businesses without property to pledge. Businesses that need funds faster than a secured facility can be arranged.
Benefits
- No collateral required, so no asset is pledged
- Faster than secured borrowing — often two to three weeks
- Interest is a deductible business expense
- Funds available for any business purpose
- Builds a credit record that improves future terms
- Flexible tenures from one to five years
What the loan funds, and what it does not
Read the right-hand column first. It is the one that decides how much you have to arrange yourself.
Usually funded
- Working capital and inventory funding
- Business expansion and new premises
- Equipment and machinery purchase
- Hiring and payroll during a growth phase
- Marketing and business development spend
- Bridging receivables gaps
Usually not funded
- Speculative investment and trading in securities
- Processing fee, typically one to three per cent
- Businesses below the lender's vintage or turnover threshold
- Amounts beyond what cash flow supports
- Repayment of promoter loans, at some lenders
Funding limits and the treatment of add-ons vary between lenders and move with the borrower profile. The sanction letter you receive is what governs — we will walk you through it before you sign.
How it works with us
- 1 We read your financials before approaching anyone Turnover, margins, banking conduct and existing obligations. Lenders read the same numbers, and it is better to know what they will see.
- 2 Matched to lenders who write your segment Manufacturing, trading and services are underwritten differently. Applying to the wrong lender wastes weeks and marks your credit file.
- 3 Structure chosen before rate A term loan, a working capital line or an overdraft solve different problems. The cheapest wrong structure is still the wrong structure.
- 4 Documentation prepared properly, once Financials, GST returns, bank statements and projections in the format lenders expect. Incomplete files are the main cause of delay.
- 5 Sanction, disbursal and an eye on the covenants We flag the conditions attached to the sanction so a covenant breach is not the first you hear of a problem.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Tidy the bank statements before applying. Six months of consistent, explicable banking conduct moves the rate more than any negotiation will.
- Make sure GST returns, income tax returns and financials tell the same story. Mismatches are the single most common reason applications stall.
- A secured facility is substantially cheaper. If you have property or securities to pledge, use them and treat the unsecured route as the fallback.
- Do not apply to several lenders at once. Each enquiry marks the file, and a cluster signals distress.
- Match the tenure to what the money does. Funding inventory over five years means paying for stock long after it has been sold.
Documents required
- Business registration — incorporation, partnership deed or proprietorship proof
- PAN of the business and of the promoters
- Last two to three years of audited financial statements
- Last two to three years of income tax returns with computation
- GST returns for the last twelve months
- Bank statements for the last twelve months
- KYC of promoters, partners or directors
- Existing loan sanction letters and repayment records
Frequently Asked Questions
What do lenders actually look at?
Business vintage, turnover, margins, banking conduct and promoter credit scores. Of these, banking conduct is the one most within your control in the short term — six months of clean, consistent statements changes the pricing meaningfully.
How long does it take?
Typically two to three weeks where documentation is complete, and faster with some digital lenders. Incomplete files are the main cause of delay, which is why preparing everything once is worth the effort.
Why is it more expensive than a secured loan?
Because there is no collateral. If you have property or securities to pledge, a secured facility will be several percentage points cheaper. Unsecured borrowing is the right answer when you have nothing to pledge or need the money faster than a mortgage can be created.
My GST returns and financials do not quite match. Does it matter?
Considerably. Lenders reconcile them, and a mismatch raises questions that slow or stop the application. It is worth resolving the discrepancy before applying rather than explaining it afterwards.
Is the interest tax deductible?
Yes, interest on borrowing for business purposes is a deductible business expense. Keep the end-use documentation, particularly where the same promoters have personal borrowing too.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.