Discover Unsecured Business Loans, Their Benefits, And Interest Rates
About Unsecured Business Loan
Running a business often requires extra money, whether it’s to start, grow, or manage daily expenses. However, not every business owner can or wants to use their property or assets as security for a loan. This is where unsecured business loans can help.
Unsecured business loans let you borrow money without needing to provide any collateral. Instead, the loan is given based on your financial records, credit score, and income. These loans are useful for many needs, like buying equipment, expanding your business, or managing working capital.
Since there is no security involved, lenders take on more risk, so the unsecured business loan interest rates may be slightly higher than for secured loans.
Eligibility For Unsecured Business Loans
To qualify for an unsecured business loan, you need to meet these basic requirements:
- Age: : 18 to 65 years at loan maturity.
- Business Age: : Minimum 1 year in operation, showing profit.
- Credit Score : 700 or above.
- Turnover: : Annual turnover as per lender’s policy.
- Residency : Indian citizen with no criminal record.
- Loan History: : No previous loan defaults.
- Banking Details: : Provide 6 months’ bank statements.
Not meeting the criteria? No problem! Get in touch with us, and we’ll assist you in finding the best solution to secure your loan.
Features And Benefits Of Unsecured Business Loans
- No Collateral Required: : Get the loan without pledging any assets, good for startups and small businesses.
- Quick Approval: : No time wasted in asset assessment, loan disbursal is simple and fast to cater your immediate business needs.
- Minimal Documentation: : Unsecured loans are approved by submitting basic paperwork as there is no need to submit asset or collateral documentation
- Large Loan Amounts: : Depending on your needs and eligibility, you can borrow large loan amounts.
- Affordable EMIs: : Financers generally provide smooth repayment options as per your financial capacity.
- Accessible for All: : Startups, SMEs, MSMEs, and manufacturers, everyone can apply for unsecured loans to meet their immediate business needs.
- Online Convenience: : Unsecured loans can be applied and managed from anywhere with a fully digital process.
Types Of Unsecured Loans
- Term Loan : A fixed loan amount repaid through EMIs over a set period. Ideal for large expenses like equipment or business expansion.
- Working Capital Loan : Helps cover everyday business costs such as salaries, rent, and inventory. It ensures smooth operations during financial gaps.
- Overdraft Facility : Provides a credit limit to withdraw as needed. You pay interest only on the amount used, offering financial flexibility.
- Line of Credit : A flexible funding option allowing you to borrow and repay funds repeatedly. It’s similar to a credit card system.
- Government-Backed Loans : Loans under schemes like Mudra and Stand-Up India offer low interest rates to support small businesses and startups.
Not sure which Unsecured Business Loan suits your needs? Get in touch with us today, and we’ll help you make the right choice!
Documents Required For Unsecured Business Loans
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Completed loan application form.
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KYC documents (Aadhaar, PAN, Voter ID, Passport, or Driving Licence).
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Business registration and ownership proof.
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Business address proof (utility bills, rent agreement).
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Last 6 months’ bank statements.
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Latest ITR with audited financials.
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Proof of business continuity (trade licence, GST registration).
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Recent passport-sized photographs.
Don’t have all the documents or are facing challenges? Don’t worry! Get in touch with us, and we’ll assist you through the process.
Unsecured vs Secured Loan: Key Differences
Choosing between an unsecured and a secured loan depends on your business needs and financial situation. Here’s a quick comparison:
| Category | Unsecured Loan | Secured Loan |
|---|---|---|
| Collateral/Security | Not required | Required (e.g., property, equipment) |
| Interest Rate | Higher | Lower |
| Loan Amount | Moderate | Higher |
| Processing Fee | Low | High |
| Repayment Tenure | 12 months – 5 years | 5 years – 30 years |
| Credit Score | Critical for approval | Considered but less decisive |
| Approval Rate | Lower | Higher |
| Loan Disbursal Time | 1–2 working days | 7–10+ working days |
| Pre-payment Options | Flexible | Often rigid |
Unsecured loans offer faster approvals and greater flexibility, while secured loans are ideal for larger amounts with lower interest rates.
How BankEMI Helps You Get an Unsecured Business Loan?
Applying for unsecured business loans across various banks or NBFCs without knowing which one will approve your loan can be a real struggle. At BankEMI, we’ve helped thousands secure the loans they need, even in challenging situations or when they didn’t fully meet the eligibility criteria.
- Step 1: Share Your Requirements : Let us know your loan needs and provide the basic documents.
- Step 2: We Find the Best Lenders : We shortlist the top financial institutions that match your requirements.
- Step 3: Choose Your Loan : Select the loan option that suits you best from the ones we recommend.
- Step 4: Submit Your Documents : Provide the necessary paperwork for the loan approval process.
- Step 5: Receive Your Funds : Once approved, your loan amount will be credited to your account quickly.
Why Choose BankEMI?
- Fast Loan Disbursal : Once the loan is approved, funds are quickly transferred to your account for your immediate business needs.
- Hassle-Free Application Process : Through our tie-ups with top financial institutions, banks and NBFCs, we make the process easy and efficient for you.
- Multiple Loan Options : We help you choose from multiple loan offers available according to your business goals and ease of repayment.
- Competitive Business Loan Interest Rates : Not only do we offer loans from multiple banks for you, but we also help you find the best unsecured business loan interest rate.
Looking for the best Unsecured business loan in Chandigarh? Contact us today and get personalized loan options tailored to your business needs!
