Unsecured Business Loan
An Unsecured Business Loan is a financing solution provided without the need for collateral or security. It helps entrepreneurs and businesses access quick funds to manage operations, expand infrastructure, or meet working capital requirements. These loans are flexible, with faster approval and easy repayment options.
Types of Unsecured Business Loan
Unsecured business loans can be availed for different business needs. Common types include
Working Capital Loan
To manage daily operational expenses.
Term Loan
Fixed loan amount for expansion, purchase of assets, or large investments.
Overdraft Facility
Flexible borrowing limit to handle cash flow gaps.
Business Line of Credit
Access to funds as needed, repay only on usage.
Invoice Financing
Loan against unpaid invoices to maintain liquidity.
Merchant Cash Advance
Funds provided based on future sales or card transactions.
Why Unsecured Business Loan is Important?
Collateral-Free Finance
Entrepreneurs can secure funds without pledging assets.
Quick Approval & Disbursal
Ideal for businesses needing immediate capital.
Supports Business Growth
Helps in expansion, inventory purchase, or marketing campaigns.
Flexible Usage
Funds can be used for multiple purposes without restrictions.
FAQs
What is the maximum amount available under unsecured business loans?
Depending on the lender, amounts can range from ₹50,000 to ₹2 Crores.
Do I need a high credit score to apply?
Yes, a good credit score (usually 650+) improves eligibility and reduces interest rates.
What is the typical repayment tenure?
Repayment tenure usually ranges from 12 months to 60 months.
Who can apply for an unsecured business loan?
Business owners, self-employed professionals, startups, and SMEs with stable income and financial records are eligible.