If you’re a small business looking for an unsecured loan, Standard Chartered Bank’s Business Instalment Loan (BIL) could be a solution to consider. The loan offers up to ₹1 crore with flexible tenure up to 4 years. Interest rates for the Business Instalment Loan start from 17.25% per annum, while the Guaranteed Instalment Loan (GIL) variant backed by CGTMSE offers lower rates beginning at 14% per annum. No collateral is required, and the application process is straightforward with minimal documentation, mostly based on GST statements and turnover documentation. The bank also offers a quick decision—within 14 working days for loans up to ₹25 lakhs and 30 days for loans above ₹25 lakhs, post submission of all relevant paperwork.

How to Apply: Step by Step

1. Fill out the online application form with business and personal details.
2. Submit all necessary documents as specified, such as GST returns and bank statements.
3. A bank representative will connect with you to guide you further and collect any additional documentation if required.
4. Once you submit all documents, Standard Chartered will process your application and inform you of its decision within the specified time frame.
5. If approved, agree on the interest rate, loan amount, and tenure; funds will be disbursed directly into your account.

Advantages of the Standard Chartered BIL

One major pro is the collateral-free nature of this loan, meaning business owners do not need to mortgage property or provide security. The loan process is quick and convenient with less paperwork, especially since eligibility is assessed using readily available GST documents and bank statements. Flexible tenure and the ability to top up your existing loan add to its appeal.

Disadvantages to Consider

Interest rates on the Business Instalment Loan start relatively high, particularly compared to traditional secured loans. Additionally, the processing fee is 2% of the disbursed loan amount and prepayment penalty can be up to 5%, which might impact cost-conscious borrowers. Penal charges on missed EMIs are steep at 24% p.a.

Our Verdict

For businesses needing quick access to funds without the hassle of collateral, the Standard Chartered Business Instalment Loan is an attractive choice. While the interest rates could be lower, the simplicity and flexibility offered make it suitable for established SMEs with clear documentation. It’s a viable financing option if your business is stable and you value ease of application.