Small and Medium Enterprises (SMEs) form the backbone of the Indian economy. Their contribution at a local level and the domestic production keep the economic cycle of the country running.
The last two years of a pandemic have been tough on all sorts of businesses in India but more particularly on the SMEs. Low growth in business caused by the pandemic has made it a hassle for these SMEs to secure loans for their future endeavors. A number of financial institutions have created an apparatus to provide these business loans in the form of credit. Usually, these loans are of two types – Secured and Unsecured business loans.
While secured loans are a good way of getting credit for the enterprise, they usually tend to become burdensome on SMEs. At the same time, the unsecured business loans do not lay the same burden as they are offered without the SMEs having to pledge their assets as collateral. Let us properly understand how Unsecured business loans can prove to be extremely beneficial to SMEs:
Any SME owner must compare the pros and cons of both the secured and unsecured business loans to fully understand what suits their requirement best. They should also give due consideration to choosing the right financial institution to get the loan. Any place that provides low-interest rates, minimum documentation, and curates the plans according to specific needs, like done at Oxyzo, is the ideal pick.