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Welcome to the Knowledge Centre.
Enabling businesses to go further.
Everything You Need to Know
About Loans and Borrowing.
Understanding What Loan is
Best for You.
Different businesses have different credit requirements. Get informed on how to find the right loan at the most affordable rates for your small business.
Learn More
Understanding the Lending
Process.
From finding the right product to the documentation required for a loan, get the A-Z details on what it takes to apply for a small business loan.
Learn More
Understanding Your
Credit Score.
A strong business credit score is essential to gain affordable credit. Get up to date on what it means to have a good score and how you can work towards strengthening your own.
Learn MoreEverything You Need to Survive
and Grow Your Business.
COVID-19 Resources
As the pandemic continues to surprise the world, it can be a challenge for small businesses. At CreditEnable, we have put together this resource collection to help you navigate this extraordinary period in history with more confidence.
Learn More
Go Digital
A thriving digital economy will be the natural consequence of a post-pandemic world. Read on to find out how you can equip your business with the digital tools it needs to be successful in this new era.
Learn More
Resources for Female Founders
Strong female leaders need strong female mentors and relatable advice. If you are a female entrepreneur, or are aspiring to be one, click through for guidance on how to make it in the global business community.
Learn MoreWhat type of loan do I need?
An Unsecured Business Loan can be used by SMEs to finance growth, make investment into infrastructure, operations, or purchase new plant or machinery. Such loans can be obtained without any collateral as security. These loans are generally short-term in nature and the repayment period does not extend beyond 3 years. Other than traditional assessment methods, CreditEnable also facilitates Unsecured Business Loans based on bank statement analysis, GST returns and other factors. Even if you are operating a new business with low operating history, CreditEnable can still help you to get a loan so long as you have at least two years of trading history.
CreditEnable’s unsecured business loans are customized for SMEs in India. This type of loan can fulfill your funding needs until your business is able to generate enough revenues to meet them. Our proprietary platform matches your loan requirement with the right lender for your business in no time, speeding up the process when you apply for a business loan online.
Check Eligibility
Types of Unsecured Business Loans
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Overdraft/Credit Line:
An overdraft facility is a revolving line of credit, wherein the lender will provide you a limit for an approved amount in your bank account. You can borrow money up to the sanctioned limit, based on your needs. Interest will be charged only on the amount utilized. An overdraft facility or credit line can help you resolve short-term cash flow issues for your SME and meet other operational funding needs. Note: larger limits may require security.
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Term Loans
For your term loan needs, you can opt for a term loan that has limited financing requirements. The loan repayment period is generally up to 36 months. This gives your SME the option to take out a loan for working capital needs or other immediate funding requirements.
Features of CreditEnable Business Loan:
- Borrow 1 Lakh to 75 Lakh
- Interest rates starting at 14%*
- Processed in days rather than weeks
- Collateral-free loans that allow you to fund your needs without pledging any assets or security
- Flexible tenure, ranging between 12 months to 36 months
- No hidden costs and charges from CreditEnable
- Lowest interest rates on business loans
*Depends on your business financial health and turnover
Business Loan FAQs:
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Why should I take a business loan?
Lack of funds should never be a reason to pass up on a great growth opportunity for your SME. A business loan can give you the financial support to realize your business potential and dreams.
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What are my chances of getting a business loan from CreditEnable?
At CreditEnable, we have a vast range of loans with different ticket sizes from multiple lender partners, meaning you stand a higher chance of obtaining a loan that is right for your business. We also provide assistance on ways to improve your credit score and our lender partners can arrange customized loans to meet your needs.
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Are there any benefits of taking a business loan from CreditEnable?
Our entire loan process is easy, quick and efficient. At CreditEnable, the three-step business loan process of submitting your application, approval and disbursal can be completed within days rather than weeks. We do not require collateral and do not charge any service fees. Our lender partners also provide the best interest rates in the market.
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Do I have to visit the CreditEnable branch office to avail a loan?
No, our entire loan process is available online. From application submission to documentation verification, everything happens online, which helps us provide you a quick and hassle-free loan experience.
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My SME is based outside Mumbai. Can I still apply for a loan from CreditEnable?
CreditEnable partners with over 25 lenders that have a pan-India presence. This means that although our offices are located in Mumbai, Nagpur and Delhi, you can apply for a loan with CreditEnable from anywhere in the country.
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Is there any preference for women entrepreneurs?
A significant part of CreditEnable’s assessment of your business loan application relies on automated credit algorithms. This means that there are no inherent biases and all loans are assessed purely on the SME’s credit standing and affordability.
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How can I speed up my loan approval?
For the quickest loan approval, ensure you meet the eligibility requirements, provide all the correct documents and fill up the application form accurately so there are no delays.
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How can I apply for a business loan on CreditEnable?
All CreditEnable loans are approved and sanctioned online.
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How can I check the application status of my loan?
You will receive regular email correspondence updating you on the status of your loan. Of course, if you wish to speak with one of our friendly staff you are also welcome to call.
CreditEnable’s machinery loans allow you to get funds to purchase new plant, machinery or equipment, or upgrade your existing ones. A machinery loan can help you scale your business to new heights by investing in the growth and profitability of your operations.
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Reasons to Apply for a Machinery Loan
In a manufacturing business, the quality and durability of your machinery or equipment can go a long way in determining your SME’s success. If your existing funds do not provide enough room for repair, replacement or upgrade, a machinery loan can come to your rescue.
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Emergency Repairs and Replacement
A machinery breakdown can halt operations and put a dent in your bottom line. You may not be able to plan for such a situation. An uncertain circumstance like this can be rectified with the help of a business loan to pay for repairs or replacement.
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New Machinery
When looking to scale your business, you may want to add more equipment to your existing line. Or, there may be new, more sophisticated machinery in the market that can boost your productivity. Better quality machines reduce your chances of defective products and improve your productivity. A machinery loan can ensure top-notch quality of products and quick production schedules by investing in new machines.
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Discounted Offers
Sometimes, there may be an opportunity to purchase a large machinery consignment at discounted rates. Your SME may not have the funds for this, but it could be a viable business investment to boost your productivity. A business machinery loan can help you take advantage of this opportunity.
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Boost Your Balance Sheet
Adding new, reliable machinery to your business increases its value. If you are looking for new investors for your business, having the best machinery can improve your chances. Additionally, new machinery is also great for your taxes because you can avail tax exemptions by showing higher depreciation of assets.
Features of Machinery Loans
- Borrow from 15 Lakhs up to 3 Crores
- Repayment period of 12 months to 10 years
- Processed in days rather than weeks
- Machinery is the collateral in this case
- No hidden costs and from CreditEnable
Machinery Loan FAQs:
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What can I purchase using a machinery loan?
With a CreditEnable machinery loan, you can purchase any equipment or machinery meant for your business operations. This can be manufacturing equipment, a vehicle for business purposes, ovens or other commercial kitchen equipment, or air conditioning for your office space.
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What are my chances of getting a machinery loan from CreditEnable?
CreditEnable provides a range of loan sizes from different lenders. As long as you meet the eligibility criteria and provide the necessary documents, you should be able to get a machinery loan. In case your credit history or business size does not allow you take a loan that you want, we will work with you to improve your chances.
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What are the loan terms?
The terms and rates are as follows:
- Borrow from 15 Lakhs up to 3 Crores
- Interest rates starting at 10%*
- Repayment period of 12 months to 10 years
- No fees or charges from CreditEnable
*Depends on your business financial health and turnover
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Do I need collateral for the loan?
Machinery is the collateral in this case.
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What is the repayment period for a machinery loan?
The tenure for a machinery loan can range from 12 months to up to 10 years. It depends on the amount of the loan, the revenue levels of your business and the frequency of repayments.
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What are the other benefits of taking a machinery loan from CreditEnable?
CreditEnable’s loan process is easy, quick and efficient. At CreditEnable, the three-step business loan process of submitting your application, approval and disbursal can be completed within days, as opposed to weeks. Even for machinery purchase, CreditEnable does not have any service fees or hidden charges.
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How do I apply for a machinery loan on CreditEnable?
CreditEnable’s loan application process is completely digital and online. Simply click here to apply.
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How can I check the application status of my loan?
You will receive regular email correspondence updating you on the status of your loan. Of course, if you wish to speak with one of our friendly staff you are also welcome to call.
Loans are not just for long-term or capital requirements. SMEs may face cash flow crunches that hinder their everyday operations. An inability to pay recurring expenses like rent, wages, EMIs or service accounts payables can put a strain on the business. Our secured working capital loans provide you the funding support to keep operations running smoothly even during a low revenue period.
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Types of Secured Working Capital Loans
Broadly, secured working capital loans can be of secured or unsecured nature, meaning they may or may not require you to pledge security. More closely, secured working capital loans from CreditEnable can be of the following four types:
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Bank Overdraft/Credit line:
An overdraft facility is a revolving line of credit, wherein the lender will provide an approved limit in your bank account. You can borrow money up to the sanctioned limit, based on your needs. Interest will be charged only on the amount utilized. This is ideal for working capital requirements since there is an upper limit as well as the advantage of using lower funds in case your revenues come through. Larger limits may require security.
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Loan on Accounts Receivables
For a business that has trustworthy customers who pay up on time, a loan on accounts receivables is a viable secured working capital loan option. This is a form of secured loan where you pledge your invoices in return for immediate funds. This is ideal for extremely short-term credit, usually ending on the date the invoices are due.
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Factoring / Advances
Similar to invoicing, factoring advances are also sanctioned against accounts receivables wherein you sell your invoices in exchange for money. The lender will recover dues from your debtors. Usually about 70% of the money is paid in advance and the remaining amount is held for any unforeseen charges.
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Supplier Invoice Financing
Vendor or Supplier Finance is a working capital optimization tool for both the buyer and supplier. Through a third-party financier, the buyer can extend its payment terms while providing the supplier an early payment.
Features of CreditEnable Secured Working Capital Loans:
- Different loan ticket size options ranging between 15 Lakh to 15 Crore
- No fees or charges from CreditEnable
- Lowest interest rates – utilizing our lender matching algorithm, you are only matched with the lender that best suits your requirements
Advantages of Secured Working Capital Loans
Apart from meeting your immediate funding requirements, here is why you should take out a working capital loan:
- You can streamline your cash flows during a lean business phase with immediate funds
- With a secured working capital loan, never miss a payment deadline
- It can help you maintain your credit score by making timely payments
- You do not have to sell assets to meet operational expenses
- Your business ownership will not get diluted because there is no need to sell a stake to get funding
Secured Working Capital Loan FAQs:
- What can I use a secured working capital loan for?
A secured working capital loan can be used to finance any routine expense needed to continue operations. Usually, these expenses have to be recurring. This can include rent, wages or salary payments, stationery purchases, security costs, utility bills, to name a few.
- Why should I take a secured working capital loan from CreditEnable?
CreditEnable provides easy and quick secured working capital loans. The entire process is online and can be completed within days, as opposed to weeks. We do not charge any service fees and do not levy hidden charges. In addition, we also provide the best interest rates in the market.
- Do we need a guarantor for a secured working capital loan?
Some lenders may require a co-applicant/guarantor.
- What are the loan terms?
The terms and rates are as follows:
- Borrow from 15 Lakh up to 15 Crore
- Customized interest rates starting from 8%+*
- Varied repayment periods depending on business needs and business financial position
*Depends on your business financial health and turnover
- Why should I take a secured working capital loan via CreditEnable if I have an existing CC or DD limit already?
CreditEnable can help you obtain better terms than your current product.
- How can I apply for a secured working capital loan on CreditEnable?
CreditEnable’s loan application process is completely digital and online. Simply click here to apply.
- How can I check the application status of my loan?
You will receive regular email correspondence updating you on the status of your loan. Of course, if you wish to speak with one of our friendly staff you are also welcome to call.
For an SME that has access to assets that can work as security for a loan, a secured term loan is a practical alternative to unsecured loans.
When you pledge collateral for a loan, you can get access to a higher loan amount as well as an attractive tenure. The interest rate for a secured term loan for business is lower compared to loans that are collateral-free.
If you are a manufacturer, trader or an online or offline retailer with assets to pledge, a secured term loan could be the right business loan choice for you.
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Types of Secured Term Loans
Secured term loans can be of three types, based on the amount of funding needed, repayment capacity of borrower, and the frequency of cash flows in the business.
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Short-term loans
A short-term secured loan sanctions a small loan amount for a tenure ranging from 12 to 18 months. Depending on your relationship with the lender, these loans can sometimes be extended for up to 60 months. You can take on a short-term loan for immediate funding requirements such as repair of machinery, bonus or compensatory payments, among others.
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Intermediate-term loans
For a larger loan ticket-size, an intermediate-term loan with a longer repayment period can be a good fit. Intermediate-term loans usually have a tenure of 3 to 5 years and offer flexible EMI options. They can be used for bigger purchases like buying equipment, expanding property, renewing property lease, among others.
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Long-term loans
When your business needs to make a large investment that usually requires a heavy lump sum funding, long-term secured loans are a good option. These loans come with attractive interest rates including tenures up to 20 years. With such loans, you can buy new property, invest in a new segment of the business or expand the size and scale of your business.
Features of CreditEnable Term Loans:
Secured term loans are convenient funding options for pre-determined loan amounts, attractive interest rates, stable EMIs and diverse use. The features of a term loan outlined below can help you understand its functioning.
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Fixed loan amount
Term loans are usually sanctioned for a fixed amount, determined at the time of loan approval. This is determined based on your need, type of term loan, the creditworthiness of your business and the frequency of repayment.
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Fixed tenure of repayment
While you can choose the tenure of the loan at the start, once the loan is approved, the duration is fixed. It can be a short-, intermediate-, or long-term loan.
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Collateral is required
As the name suggests, secured term loans usually need some form of collateral for security. This could be property papers, machinery, fixed deposits, equity ownership, gold, or any other asset that fulfills the requirement.
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Fixed repayment schedule
The schedule of payment is determined at the time of loan approval. You will have to make EMI payments as per this schedule for the entire duration of the loan. However, term loans often come with the option to prepay loans if your financial situation permits.
Secured Term Loan FAQs:
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What is a term loan, exactly?
A business secured term loan is a credit facility that sanctions funds for a fixed period of time at a predetermined interest rate. It can help you meet a range of business needs that you may have from short-term working capital requirements to long-term property purchases.
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Why does a term loan require collateral?
When you apply for a large-ticket loan, the lender assumes a big risk. In case you default, the lender stands to lose a large amount for money. To make up for this risk, the lender requires to pledge an asset. In the event of a default, the lender can sell this asset to recover either part or all of the loan amount.
In case you want a business loan that does not require security, you can consider an unsecured business loan, machinery loan or secured working capital loan.
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What can I pledge as security?
LTV ranges from 50% to 80% based on type of property pledged as collateral. This can be your business property papers, equipment or machinery, fixed deposits, share ownership or any other investment.
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What are the benefits of taking a secured term loan from one of CreditEnable’s lender partners?
The biggest advantage of any secured term loan is the lower interest rate. At CreditEnable, secured term loans are quick and easy, with the whole process completed online. You can submit the application, get approval and receive funds in days. We do not charge the borrower any service fees nor do we levy hidden charges.
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What are the terms of this loan?
- Borrow from 15 Lakh up to 15 Crore
- Customized interest rates starting from 9%+*
- No fees or charges by CreditEnable
- Loan tenure up to 20 years
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Do I have to visit the lenders branch office to avail a loan?
No, our entire loan process is available online. From application submission to documentation verification, everything happens online, which helps us provide you a quick and hassle-free loan experience.
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Is there any preference for women entrepreneurs?
A significant part of CreditEnable’s assessment of your business loan application relies on automated credit algorithms. This means that there are no inherent biases and all loans are assessed purely on the SME’s credit standing and affordability.
-
How can I speed up my loan approval?
For the quickest loan approval, ensure you meet the eligibility requirements, provide all the correct documents and fill up the application form accurately so there are no delays.
-
How can I apply for a business loan on CreditEnable?
All CreditEnable loans are approved and sanctioned online.
-
How can I check the application status of my loan?
You will receive regular email correspondence updating you on the status of your loan. Of course, if you wish to speak with one of our friendly staff you are also welcome to call.
Loan Against Property
When an SME business owner has a valuable personal or business property in their name, it can be used as collateral to help secure a loan. Loan against property (LAP) can be used to meet your business financing needs by pledging your property papers as security. The loan can be used to meet long-term funding needs, expansion plans, buy new property and equipment or to refinance existing loans. CreditEnable’s LAP options are flexible, easy and quick to secure.
Check Eligibility
Types of Loans Against Property
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Loan Against Residential or Commercial Property
The vanilla loan against property is a typical mortgage loan that you can take for your SME by pledging commercial or even residential property papers as collateral. The amount of loan sanctioned depends upon the present market value of the property. Usually, you can get between 50-80% of the market value.
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Loan Against Property Balance Transfer
If you have a pre-existing LAP with another lender, you can transfer the outstanding principal amount to CreditEnable. This can lower your interest payments as we can connect you to the best lenders offering affordable interest rates.
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Loan Against Property Top-Up
In case the existing loan amount is insufficient, you can request a top-up on the loan over and above the existing balance. This will come at a nominal interest rate hike. Your collateral value can be reassessed and an equivalent amount sanctioned accordingly.
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Loan Against Property Overdraft
CreditEnable also offers you an overdraft credit facility on your LAP. In this option, you get a credit line with an upper amount limit. You can withdraw as much as you need within this limit, for the same repayment tenure and loan terms. Interest will only be charged on the amount used, as against the overdraft amount sanctioned.
Features of CreditEnable LAP:
- Loan of up to 70% of the value of your property
- Loan amount processed in days rather than weeks
- Flexible tenure going up to 15 years
- No hidden costs or charges by CreditEnable
- Customized interest rates starting from 9.5%+*
*Depends on your business financial health and turnover
Loan Against Property FAQs:
- What is a loan against property?
An LAP is a secured business loan that provides you with necessary funds for your business against property pledged as collateral.
- Why do I need to pledge property?
Large loans are a considerable risk for lenders in the event that you default. To make up for this risk, the lender requires to pledge an asset. If you are unable to service payments because of any reason, the lender can recover part or all of the funds by selling your property. The advantage of an LAP is that you can get a large loan amount for lower interest.
In case you want a business loan that does not require security, you can consider an unsecured business loan, machinery loan or secured working capital loan.
- How do I know if the property value will cover my loan requirement?
LAP amounts are usually calculated as a percentage of the current market value of the property pledged. You can be eligible for a loan anywhere between 50-80% of the total value. CreditEnable will assist you to calculate the market value of your property accurately.
- Is my credit score important to get a loan against property?
A high credit score, usually above 750, means that you have a higher ability to repay your loans. However, since LAPs are secured loans, you can get one even with a low credit score. Do note that your credit score, though not necessary for the loan approval, will play a role in the rate of interest. A low score means you will be charged a higher rate.
- Can I improve my credit score?
CreditEnable assists its borrowers to improve their credit score and get better loan terms.
- What are the loan terms?
The terms and rates are as follows:
- Loan of up to 70% of the value of your property.
- Customized interest rates starting from 9.5%+*
- No fees or charges by CreditEnable
- Loan tenure of up to 15 years
*Depends on your business financial health and turnover
- Do I have to visit the CreditEnable branch office to avail a loan?
No, all our loans are processed online. From application submission to documentation verification, everything happens through our portal, which helps us provide you a quick and hassle-free loan experience.
- I have pre-existing loans. Can I still apply for an LAP on CreditEnable?
Prior loans impact your credit score as well as repayment ability. Lenders may be cautious about extending you a new loan. If you have pre-existing loans or have already pledged your property elsewhere, you can avail an LAP balance transfer with one of CreditEnable’s trusted partners.
- How can I apply for a business loan on CreditEnable?
All CreditEnable loans are approved and sanctioned online.
- How can I check the application status of my loan?
You will receive regular email correspondence updating you on the status of your loan. Of course, if you wish to speak with one of our friendly staff you are also welcome to call.
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