Making Unsecured Business Loans work for You

As a small business, you sometimes need to plug in a cash flow need to ensure you meet your business operates smoothly.

Unsecured Loans may draw some hesitation from business owners, but here are 5 ways the SBM Bank Unsecured MSME Loan may work for you:

1. No Collateral Required:
One of the primary advantages of unsecured loans is that they do not require collateral. This means that you can secure financing without pledging assets such as property, equipment, or inventory. This is particularly beneficial for startups or small businesses that may not have substantial assets to offer as collateral. This provides you with greater access to funding, leveling the playing field and fostering entrepreneurial spirit.

2. Get a Streamlined Application Process:
Compared to traditional loans that involve lengthy application processes and extensive documentation, our unsecured loans often feature a streamlined application process. We focus more on factors such as your business's revenue, creditworthiness, and prospects, rather than relying solely on collateral. This leads to quicker approval times, allowing you to take advantage of time-sensitive opportunities.

3. Increase Your Needs Flexibility:
Our Unsecured MSME Loan provides your businesses with greater flexibility in how funds are allocated. Other loans are tied to specific purposes like equipment financing or real estate, reducing the freedom to use the funds outside the business's specific needs. This flexibility allows businesses to allocate funds toward areas crucial to their growth strategy.

4. Reduce Risk to Your Assets:
As unsecured loans do not require collateral, businesses can protect their assets from potential loss or seizure. This is particularly significant for businesses with valuable assets they wish to retain ownership of or use for future endeavors. This means you can access the necessary capital while safeguarding your assets, offering peace of mind during the borrowing process.

5. Improve Your Credit Profile:

Timely repayment of unsecured loans can have a positive impact on a business's credit profile. Consistently meeting repayment obligations can strengthen your business's creditworthiness, potentially improving access to better financing options in the future. Building a strong credit history through unsecured loans showcases responsible financial management and can be leveraged to secure larger amounts of funding or negotiate better terms down the line.

Talk to our team today and let’s explore how to fuel your growth and provide flexibility in today's dynamic marketplace.

SBM Unsecured MSME Loan Requirements

Eligibility / Documents Required
• Applicant must have an active bank account with SBM for at least 1 year
• Business needs to have been operational for the past 3 years at least
• Business must demonstrate stable cash flows
• Monthly turnover for the business should not have declined by more than 25% in the preceding 90 days
• Businesses in trading sectors should not have NIL banking in any given month over the preceding 12months
• Applicant should have credit life insurance