Secured business loans or collateral business loans require a company asset like land, property, or equipment to be offered as security in case the borrower defaults. You can get a longer tenure and lower interest rate on a secured loan.The Company provides Secured loans to entities with a short track record and low asset base which are unable to get finance from commercial banks.This will enable the borrowers to develop their business and to build an unencumbered portfolio which can be assigned later.
Secured business loans are the safest way to get capital for expanding or scaling up your business.
If your business is not eligible for an unsecured loan, but possesses assets like land, property, equipment, machinery or any commercial property, these business assets can be pledged as security to avail a secured business loan in India.
Unlocks the value of your asset.
The interest rates are lower than you would get in the case of unsecured loans.
Secured loans are available to proprietorship firms / partnership firms / limited liability companies, who have sound credentials including financial performance backed by adequate financial statements / documents to prove the same.
The applicants should also meet the following criteria:
(a) Type of applicants: NBFC, NBFC-MFI, HFC Manufacturing units Trading units Service units
(b) Asset Classes: Receivables in respect of microfinance, housing finance, vehicle finance, agricultural finance and small business finance in the case of NBFCs. Receivables and stock in respect of manufacturing sector etc. Receivables and stock in trade in respect of the trading sector. Receivables and stock in trade in respect of the service sector.
(c) Financial performance: Should be having profitable operations for at least the immediately preceding two financial years evidenced by audited financial statements and should not be having any accumulated loss.Read more...
Sanction Letter from MCSL duly accepted by the borrower.
Deed of Hypothecation.
Demand Promissory Note executed by the borrower in favour of MCSL.
Security cheques (in case of NACH mode of repayment) from the borrower covering the payment of the entire loan amount according to the repayment schedule along with applicable interest.
There are many types of secured business loans in India. These are specifically loans that are secured by collateral owned by the business.
Secured loans for small businesses are offered on the business owner’s personal guarantee too. If the business does not have any security that can be offered as collateral we can offer a secured small business loan against the pledge of a personal guarantee. The property, land or gold of the proprietor or partner can be used to secure the loan.
The property can be pledged as limited liability or unlimited liability and is likely to be attached if installments are not paid on time. Only the amount of loan is recovered by us in case of default by possession of the pledged property.
Our representative will contact you to get the process initiated for the secured business loans. There are a few charges and fees that are applicable over and above the interest rates when you apply for a loan.
Please get in touch with our customer care representative to know details about our collateral business loans.
Secured business loans are the most economical way to secure working capital, buy equipment or scale up operations for a business. You also unlock the monetary value of your asset in the process.