Every year many startups are launched and propelled in India. As India is a country of young people, there are really a large number of youths who develop with excellent business ideas every year. But sadly the majority of the company dies in silence whilst only a few can endure. Nearly 90% of the new businesses fail and prime reason for it is the lack of finance.

It is quite unfortunate to mention the amount of NPAs are climbing every year for both national and private banks. This rising NPAs have produced the banks become more stringent in the eligibility standards to sanction a business loan. Banks have stopped providing business loans with no collateral or an advantage to secure the loan. In addition, to make your business loan successful, you need to provide a heap of documents to the lender. The lender verifies each and every record prior to it sanctions the loan which requires a minimum of 30 to 40 days to disburse.

A parallel way of company financing is FinTech lenders. A FinTech describes the entities who work in fund but the way of functioning is similar to to the standard lenders. All these companies are fueled by tech and these would be the progressive vision of banks. FinTech companies readily offer business loans for the SMEs and MSMEs hence can be used as the choices of bank loans.

The procedure for gauging the loan eligibility in a FinTech is different than traditional banks. The traditional banks determine the qualification of a business loan is by checking the loan program, credit score, and the age of the organization, the net worth of the business, the earnings, your company plan or the value of their collateral you wish to upfront. But a FinTech firm does not take those parameters because the only way to gauge the creditworthiness of a business loan candidate. FinTechs take every applicant as an individual case and don't follow a predetermined set of eligibility criteria. Because of this the exact same, more and more business loan applicants are able to avail a company loan successfully.

A FinTech has many other added advantages which makes it a much better choice than a bank loan.

Advantages of a FinTech Business Loan
Minimal Paperwork
When you submit an application for a business loan from a conventional lender, you are supposed to submit a heap of files in its bodily form. FinTech companies are different as they never require physical documents. You just need to upload the delicate copies of essential documents and that'll be considered enough to support your loan application.

Faster Turnaround Time
The turnaround time of a traditional bank loan is 30 to 45 days. Waiting for a such a long time to have the amount of the loan can never be accepted by the business people of the 21st century. Most of the new age businesses are done online which make them function at a faster way. The needs of those businesses should be fulfilled without a lot of wait.

No Hidden Charges
A FinTech business loan includes a crystal clear processing. You will never find any sort of hidden fees on your loan when using for the same via a FinTech. Most of the banks attempt to drain your cash in various ways like forcing you to buy insurance and so on. Such kind of insurances are not a part of your loan but simply to make more profit, the lender sells these products together with loans.

100% Online Processing
A business loan from a FinTech follows a whole online process. Because of being on line, the loan neither needs to pay a visit to the lender's office nor needs to submit bodily documents. Those conveniences of a web small business loan also make it a much better option for your business personas who lacks in sufficient time for taking out hassles of this loan procedure.

Collateral Free Loan
The top about a FinTech business loan is being collateral free. But if you want to avail a business loan from a conventional bank, providing a safety is a must. Even the loan amount that you will get depends upon the value of the collateral. An online small business loan is different. Should you receive a business loan on the internet, you'll be free of the burden of maintaining your advantage in bank to get approval on your business loan.

No Prepayment Penalty
Almost all sort of credits brings a prepayment penalty which is a certain proportion of the loan outstanding amount. But this new era technology established lending organizations don't impose such penalties. In case the borrower can manage to pay back the loan ahead of time, they could pay off the loan without any penalty or additional fees.

The FinTechs today have been the lifeline of a variety of SMEs. These algorithm based lending system has stood by a huge number of start-up businesses and helped them to endure. India has a fantastic number reasonably strong companies but these are forced to get vanish within a couple of years just because of lack of finance. To the relief of those startup business ventures, a FinTech company loan is the most favourable option.