Easy approved online loans have become a preferred choice for SMEs as they provide a quick and streamlined application process through online channels. These loans are specifically designed to cater to the financial needs of businesses that require immediate funds for unforeseen expenses, emergencies, or other financial requirements.
In recent years, the availability and popularity of easy approved online loans for SMEs in India have witnessed a significant upsurge. This growth can be attributed to various factors, including the growing demand for superior customer experience and the emergence of new business models.
With the increasing need for convenient and expeditious borrowing options, easy approved online loans have emerged as a favourable solution for SMEs seeking prompt access to funds. The conventional lending process, characterised by lengthy wait times, cumbersome documentation, and stringent eligibility criteria, often posed significant challenges for small and medium-sized businesses in India.
However, the advent of online lending platforms has revolutionised the borrowing landscape, allowing businesses to apply for loans conveniently online without the necessity of visiting physical bank branches or submitting hard copies of documents.
Rise of easy approved online loans
Easy-approved online loans have become a popular financing option for businesses in India because of the following reasons:
- Faster processing
Digitisation has revolutionised the lending industry and transformed the way financial institutions operate. As a result, small businesses now have the convenience of accessing instant online loans to meet their immediate financial needs. In comparison to traditional loans, these financing options offer a significantly faster application and disbursal process. In fact, borrowers can expect to receive funds on the very same day they apply for them. The expedited loan disbursal process has greatly contributed to the widespread popularity of easy approved online loans.
- Minimal documentation
Traditional business loans and secured credit options often entail cumbersome documentation and verification processes for borrowers. In contrast, easy-approved online loans offer a convenient alternative that allows borrowers to bypass such arduous procedures and access substantial funds effortlessly. The typical documents required for borrowers include proof of address, income, and identity. Nevertheless, with instant online loans, the paperwork can be completed virtually, enabling borrowers to easily upload the necessary documents online. This streamlined process eliminates the hassle of physical paperwork and simplifies the loan application experience.
- Flexible repayment tenure
Online loans offer borrowers flexible repayment tenures, allowing them to select a repayment schedule that aligns with their financial situation and obligations. This not only enables borrowers to manage their loan effectively but also reduces the risk of defaulting on the loan amount. However, it’s important to note that these repayment terms may vary among different lenders.
In addition to flexible repayment options, the convenience of repaying the loan has significantly improved with easy-approved online loans. Borrowers now have the freedom to choose from various payment methods, both offline and online. They can opt for convenient options such as mobile wallets, UPI payments, bank transfers, and more. Some financial institutions even provide the convenience of auto-debit facilities, making the repayment process seamless and hassle-free.
- Zero collateral
One of the most significant advantages of easy-approved online loans is that they do not require collateral. This feature is specifically designed to enhance convenience for borrowers. Small businesses and aspiring entrepreneurs often face challenges when it comes to providing valuable assets as collateral to lenders. However, with instant online loans, the need for collateral is eliminated, making it accessible to a wider range of borrowers. This removes a significant barrier and provides greater financial flexibility, allowing borrowers to secure the funds they need without the burden of collateral requirements.
- Flexibility of usage
Easy-approved online loans have become the preferred alternative to traditional loans due to their relaxed eligibility criteria and versatile usability. Unlike regular loans, these financing options do not impose any restrictions on the purpose for which the funds can be used. This unrestricted usability proves particularly beneficial for business owners as it enables them to address financial gaps and navigate through off-seasons with ease. By providing the necessary funds without limitations, easy-approved online loans empower business owners to effectively manage their cash flow and sustain their operations throughout various economic cycles.
How Razorpay helps SMEs with easy approved online loans
Razorpay offers SMEs access to easy approved online loans through Line of Credit. This financial product is designed to provide businesses with quick and hassle-free access to funds, helping them meet their financial needs effectively. Here’s how Razorpay supports businesses with easy approved online loans via Line of Credit:
- Credit limit up to Rs. 25 lakhs
- Zero paperwork
- One-click draw
- 24*7 withdrawals
- 3-step application
- No pre-closure charges
- Pay-as-you-use interest rates
- No collateral
Frequently Asked Questions:
- How can I determine the best easy-approved online loan?
When choosing an instant online loan, borrowers should consider several factors such as the interest rate, default penalty, flexible tenure, and any hidden charges. Hidden charges and interest rates directly impact the total cost of the loan, while the repayment tenure determines the affordability of EMIs. Therefore, it is crucial to assess these aspects before selecting a credit option.
- What should I keep in mind when availing easy-approved online loans?
Businesses must be mindful while borrowing and opt for only the amount that they actually need. his approach helps avoid being burdened by excessive debt and saves them from higher interest rates. By borrowing prudently, businesses can effectively manage their financial obligations.
- What are the eligibility criteria for availing Line of Credit by Razorpay?
To avail this credit option, business owners should ensure an annual turnover of Rs. 20 lakhs and have been operational for at least 12 months.