Secured business loans are business loans that are backed up with some form of collateral. Collateral is something pledged as “security” to repay the business loan. If the borrower cannot repay the loan, the borrower may lose the collateral.
Inherently, this makes the business loans structurally riskier than unsecured business loans because the borrower physically has something to lose. Collateral for a secured business loan can take the form of the item the business owner is purchasing, such as
- Business-related equipment
It’s similar to when a business owner takes out a loan to buy a house; the bank or the fintech company will keep the deed to the home until the business owner repays the business loan, including interest and fees.
The bank can put a lien on the borrower’s property if the business owner cannot make the payments. In many cases, this creates a situation in which the business owner can access significantly more capital.
If a business owner is seeking a substantial amount of secured business loans, secured loans will be your primary option. Lenders are more likely to loan more significant sums of money if there is valuable collateral backing up the business loan.
If the business owner is a few days late on the mortgage payment, the bank will not immediately seize the house. But if the business owner continues missing payments and violating the mortgage terms, the bank may exercise its legal right to issue a lien.
PaySense Loan Eligibility
You can get a loan through the PaySense online loans app which gives a loan to salaried customers from Rs.10,000- Rs.2 Lacs. PaySense has given a loan to thousands of customers on easy equated monthly instalments (EMI) across 40 cities.
Many people have used these secured business loans to meet various needs from education to medical emergencies to purchasing electronics. The loan is repaid by equated monthly instalment’s over 3 to 24 months helping customers easily pay off the loan.
The equated monthly instalment (EMI) is a fixed payment amount made by a loan borrower to a lender on a specified date each calendar month. Equated monthly instalments are used to pay off both interest and principal each month so that over the specified several years, the loan is paid off in full.
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The mathematical formula for calculating PaySense Secured Business Loans equated to monthly instalments is
EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly instalments.
How to Get Secured Business Loans in 5 Simple Steps
- Fill in 6 details and Register yourself on the app
- Get Instant loan approval on the app in 1 minute
- Select your EMI and Upload 4 documents:
- Aadhaar Card
- Address Proof
- Bank Statement
- If all documents are uploaded properly you will be asked to digitally sign the loan application
- Once done get money into your account in 5 hours
Is Small Business Loan an Instalment Loan
This explained why PaySense Online Secured Business Loans is the Best
However, in the last few decades, this notion has been challenged. Many business owners have started participating in economic activities and are gaining financial independence. Access to information, exposure to different cultures, and increasing credit availability have encouraged business owners to begin their businesses.
Notably, the demand for secured business loans has witnessed steady growth recently. More so, the trend of people opting for online business loans has also gained widespread acceptance. PaySense offers secured business loans to business owners who want to expand their business or set up a new one.
- Instant sanction: Loan amount approved in 1 minute
- Flexible EMI/Loan Plans: Any loan amount with tenure from 3-24 months
- Loan in 5 hours: Approval to money in the account in 5 hours
- Easy process: Whole process on the app with you in control of the complete loan process
- Additional Loans: As you keep repaying EMI you can take more loans in one click
- Trust: Loans in partnership with IIFL (one of the largest NBFCs in India).
If you have a loan need download the PaySense loan app and go ahead and apply for your loan. In less than 5 hours if you have your mobile number linked to Aadhaar you will get your loan. When you need a second loan, just enter the amount and click on Apply. The amount is disbursed immediately 16.8% – 32% per annum. Interest rates depend on customers’ risk profile and loan tenure.
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