Unsecured Loan
An Unsecured Business Loan is a type of business financing where the lender does not ask for collateral, such as property, machinery, or fixed deposits. Instead, the loan approval is based on your creditworthiness, business performance, income stability, and repayment capacity.
Unlike secured loans, a business loan without collateral allows business owners to raise funds without pledging assets, making it ideal for MSMEs, startups, and small business owners who may not have valuable assets to mortgage.
Types of Unsecured Loan
Indian lenders offer multiple types of instant business loans without security, depending on business needs:
- Unsecured Working Capital Loan
- MSME Unsecured Loan
- Short-Term Business Loan
- Business Line of Credit
- Merchant Cash Advance
- Merchant Cash Advance
Unsecured Loan Features & Benefits
No Collateral Required
You do not need to pledge property, land, or equipment.
Quick Approval & Disbursal
Many lenders approve loans within a few days.
Minimal Documentation
Basic KYC, bank statements, and income proof are usually sufficient.
Flexible Usage of Funds
Use the loan for working capital, expansion, inventory, marketing, or operational expenses.
Short & Long-Term Options
Choose repayment tenures ranging from a few months to several years.
Improves Cash Flow
Helps manage seasonal demand and business fluctuations smoothly.
How To Apply For a Unsecured Loan ?
Apply for Unsecured Loan in 4 easy steps – it’s easy, seamless and quick.
Check Eligibility
Review age, turnover, business vintage, and credit score requirements.
Compare Lenders
Compare interest rates, charges, repayment tenure, and approval time.
Submit Documents
Provide KYC, business proof, bank statements, and income documents.
Approval & Disbursal
Once approved, funds are credited directly to your bank account.
How To Apply For a Unsecured Loan ?
Apply for Unsecured Loan in 4 easy steps – it’s easy, seamless and quick.
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Check Eligibility
Review age, turnover, business vintage, and credit score requirements.
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Compare Lenders
Compare interest rates, charges, repayment tenure, and approval time.
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Submit Documents
Provide KYC, business proof, bank statements, and income documents.
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Approval & Disbursal
Once approved, funds are credited directly to your bank account.
Loan Types
Indian lenders offer multiple types of instant business loans without security, depending on business needs:
Unsecured Working Capital Loan
Ideal for managing daily operational expenses, inventory purchase, and vendor payments.
MSME Unsecured Loan
Specially designed for micro, small, and medium enterprises to support growth and expansion.
Short-Term Business Loan
Useful for immediate funding needs with shorter repayment tenure.
Business Line of Credit
Borrow only what you need and pay interest on the utilized amount.
Merchant Cash Advance
Repayment linked to daily card sales—popular among retailers and restaurants.
Merchant Cash Advance
Repayment linked to daily card sales—popular among retailers and restaurants.
Unsecured Loan Features & Benefits
No Collateral Required
You do not need to pledge property, land, or equipment.
Quick Approval & Disbursal
Many lenders approve loans within a few days.
Minimal Documentation
Basic KYC, bank statements, and income proof are usually sufficient.
Flexible Usage of Funds
Use the loan for working capital, expansion, inventory, marketing, or operational expenses.
Short & Long-Term Options
Choose repayment tenures ranging from a few months to several years.
Improves Cash Flow
Helps manage seasonal demand and business fluctuations smoothly.
Break up of total payment
How To Apply For a Unsecured Loan ?
Apply for Unsecured Loan in 4 easy steps – it’s easy, seamless and quick.
Check Eligibility
Review age, turnover, business vintage, and credit score requirements.
Compare Lenders
Compare interest rates, charges, repayment tenure, and approval time.
Submit Documents
Provide KYC, business proof, bank statements, and income documents.
Approval & Disbursal
Once approved, funds are credited directly to your bank account.
How To Apply For a Unsecured Loan ?
Apply for Unsecured Loan in 4 easy steps – it’s easy, seamless and quick.
Check Eligibility
Review age, turnover, business vintage, and credit score requirements.
Compare Lenders
Compare interest rates, charges, repayment tenure, and approval time.
Submit Documents
Provide KYC, business proof, bank statements, and income documents.
Approval & Disbursal
Once approved, funds are credited directly to your bank account.
Unsecured Loan Interest Rates And Charges
The cost of an Unsecured Business Loan depends on various factors like credit score, business stability, and lender policies.
Typical Charges Include:
Interest Rate - Usually ranges between 12% to 30% per annum.
Processing Fees - Around 1% to 3% of the loan amount.
Prepayment / Foreclosure Charges - May apply if you close the loan early.
Late Payment Penalties - Charged if EMIs are delayed.
