Top questions asked about UpScale’s Unsecured Business Loans

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UpScale helps a small business get an unsecured business loan with a simple and 100% digital 2-step loan application process. We understand that you may have a lot of questions about how you can apply and more so we did the best thing possible. We’ve collected all the questions our users have asked us in the last few months and have tried to answer all your queries in this blog post. We hope this helps in clearing all your doubts. However, before we do that, for the uninitiated, let’s go through UpScale’s 2-step loan application process one more time.
If a business is GST-registered, its owner(s) can apply for an unsecured business loan through UpScale.  

Why apply for an unsecured business loan with UpScale?

Because with just one application a business owner can apply to a network of well-trusted 10+ lenders (which includes some of the biggest names in the banking industry). There is no paperwork involved. No form filling. No collateral required.  

What are the different types of business loans available on UpScale?

UpScale provides two types of unsecured business loans or working capital term loans. 

1. Business loans up to Rs. 10 lakhs

Applying for a business loan up to Rs. 10 lakhs is very simple and completely digital. Check out the video below to learn the steps (and other important details) involved.  

2. Business loans above Rs. 10 lakhs

It includes the previous two steps shown in the above video. In addition, a business owner will be asked to connect their Tally (if you’re wondering why, we’ve answered it below) or provide the audited financial statements for the past financial year. Apart from this, we also ask that the business owner submits the provisional financials for the current financial year to complete the loan application. That’s it! And you can get a confirmation within 2-3 working days whether the application has been approved or not. So if you’re still thinking about how to apply for an unsecured business loan, simply click here and get started. But we do understand that you may have more questions on mind. Don’t worry! Like We’re always listening to what our users are saying and we heard you! Presenting below the top curated questions asked about business loans in general.

Bonus read

The government of India has initiated several MSME schemes for small business owners to avail working capital. Each of these initiatives serves a different purpose.. For more details on these government schemes for MSME loan schemes, read our blog on Top 5 MSME Loan Schemes in India in 2022. But more than the loan schemes it is very important to understand how business loans in general work. Read on.  

1. What are msme business loans?

An MSME business loan is a credit offering for MSMEs, individuals, startups, and other business entities for business growth purposes and to meet their diverse working capital requirements. The maximum loan amount offered by financial institutions is up to Rs. 1 crore (collateral-free loans or unsecured loans) with the repayment duration going up to 5 years.  

2. Which businesses are eligible for msme business loan?

Any business applying for an msme business loan should be Tax compliant and must have a six month Bank Statement Facility. Both GST-registered, as well as non GST-registered businesses, depending on the lender’s criterias, are eligible for an MSME business loan.   

3. Which bank is best for msme business loan?

Nearly all major banks have offer both secure and unsecured business loans to MSMEs. In fact, the processes and interest rates from various banks and NBFCS are also nearly the same. However, applying for a loan from a bank requires a lot of complicated paperwork and other formalities that makes the entire process tedious and demoralizing.   

4. What are the steps/processes for applying for a msme business loan?

Typically, a business loan applicant must conduct the following steps in order for the application to be successfully processed. 
  1. Learn about different types of loans & mediums for the same: You can select a suitable type of loan based on your business’ requirements, from business expansion to buying equipments for your business.
  2. Prepare all essential documents. These are listed as follows:
  • Correctly filled application form
  • Detailed business plan
  • Up to the last six months of company bank statements
  • KYC documents of the company (PAN card, Ownership papers)
  • KYC documents of the business owner (CIBIL score, PAN number)
  • Income tax returns for the last two years
  • Audited balance sheet for the previous two years
Note: Since documentation typically varies for different lenders and loan types, you should always consult the lending institution to prepare well in advance. 3. Use an EMI calculator: Use a business loan calculator to calculate the potential EMI you would have to pay, and if you can afford it. P.S. You can use UpScale’s loan EMI calculator too. Simply sign up to start using the loan calculator from here. 4. Consider various factors: Be cautious about the type of loan, your business plan, and your credit score. In addition, you might be asked to have a personal discussion with the underwriter. This is because banks want to take all variables into account while offering a loan, including details of the business owners’ objectives. 5. Disbursal wait: On an average the loan disbursal process by a bank takes 3-4 days and primarily relies on how well you have filled your application form.   In the last few years, before and even more so, after the pandemic, the premier lending institutions in the country have come forward with various business loans. The common objective is to help small business owners with growth. However due to the traditional processes, the real benefit takes time to reach the end customer. One of the primary reasons why, the lending arm of UpScale focuses on simplifying the business loan application process, both for the borrower and for the lender. This is why our loan application process asks for very limited but specific information from the applicant. In the last few months many users have asked questions regarding the same. Finally, here are the answers.

Top questions asked about UpScale’s unsecured business loan

 

1. Why is GST registration number mandatory while applying for an UpScale Business Loan?

A GST-registered business appears as more credible and transparent to almost every single lending institution in the country. Since the UpScale app has multiple lenders on one application, any GST-registered business can apply on the app for an unsecured business loan up to Rs. 50 lakhs.  

2. Why do I have check & add my CIBIL score? Does it have any impact on my credit score?

A good CIBIL score is an indicator of timely loan repayments and financial stability. Usually a 650+ CIBIL score is considered by almost all lenders to be an acceptable one. But it is important to understand that adding and checking one’s CIBIL score on UpScale doesn’t impact one’s credit score. It simply assures the lender that the applicant is financially responsible. While this definitely is not the only criteria for a lender to approve a loan application, a good CIBIL score certainly goes a long way in terms of increasing the chances of the loan getting sanctioned.  

3. Why do I have to upload my bank statements?

We ask you to upload your current account bank statements for the past 12 months. This gives the lender a clear picture of your business’ annual turnover  

4. Why is connecting Tally required while applying for loans above Rs. 10 lakhs?

Connecting your Tally with UpScale, helps in formalizing all your financial transactions and records. For loans above Rs. 10 lakhs, lenders may seek additional information regarding a business’ financial records. Having it directly on UpScale can help in providing a well documented financial statement. However, it is not mandatory to connect your Tally. You can also provide provisional financial statements of the current financial year instead.  

5. Is my Tally data safe with UpScale?

Short answer – yes absolutely. For the long answer – you can read our blog on why UpScale is the safest growth application for your business. To summarize, we’re an ISO 27001:2013 certified company, practising the globalized standards of data safety & security. This is why, your Tally data is not only 100% safe & secure but also only YOU can access your data and no one else can.  

6. How much interest does UpScale charge for loans?

UpScale does NOT charge any interest on the loans sanctioned. We only charge a nominal processing fee. However, the leading lending institutions on the UpScale platform have their own credit policies and the interest rate varies accordingly. The interest by and large are competitive as per the market standards.  

7. How soon can I learn about my loan application status?

Within 2-3 working days, you will be notified of your unsecured business loan application status.  

In conclusion

We hope we were able to answer all your questions about UpScale’s unsecured business loans. If you still have questions, let us know in the comments section below.  If you would like to apply for an unsecured business loan with UpScale sign up from here.
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7 thoughts on “Top questions asked about UpScale’s Unsecured Business Loans”

    • Team UpScale Post authorReply

      Hi Chalaseni,

      Any business which is GST-registered and is at least a year old, can apply for an unsecured business loan on UpScale. For more details, please write to us at [email protected].

      Hope we were able to resolve your query.

      Regards,
      Team UpScale

  2. Pankaj Patel Reply

    We are interested in restructuring our finances.
    We may start with 20lakhs to 1.5 cr.

    Orion Packart
    VADODARA, Gujarat, India.

    I- FMCG.

    Industrial FMCG
    is our business model.

    • Team UpScale Post authorReply

      Hi Mr. Pankaj,

      Thank you for writing in. A member of our team will reach out to you shortly.

      Thanks and regards,
      Team UpScale

  4. Anwar Hussain Reply

    I have a business firm name Maa Laxmi,It’s based on Govt contractor n construction business, running about three years now I need a loan, having gst,trade license, statements,current acct, govt work order of 2cr, but not tally ,am I eligible.
    pH 7896729230

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