Unsecure Business Loan

Business loan is a credit facility offered by Banks/NBFCs to meet the financial requirements of self-employed customers and enterprises. It can be availed by individuals, MSMEs, business owners, entrepreneurs, retailers, traders, manufacturers, self-employed professionals (CAs/Doctors), and several other business entities.

Business loans are majorly classified into two types, such as secured loans and unsecured loans. Secured loans are types of loans that require collateral/security, that borrowers need to deposit with the lender to avail funds. However, in the case of unsecured loans, there is no need to submit any type of collateral/security with the Bank, NBFC, or any other financial institution.

Banks/NBFCs offer a range of both Secured and Unsecured Business Loans that include Term Loans (Short-term/Intermediate-term/Long-term), Working Capital Loans, Cash Credit, Overdraft, Letter of Credit, Bill/Invoice Discounting, Equipment Finance, Machinery Loans, Point-of-Sale (POS) Loans/Merchant Cash Advance, Fleet Finance, Loans under Bank Guarantee (BG), and Loans under Govt. schemes, such as Mudra Loans (PMMY), SIDBI, PMEGP, CGTMSE, Stand Up India, PSB Loans in 59 minutes, PMRY, etc.

Documents required for a business loan

• KYC documents along with firm registration/ proof of identity
• Primary business bank statement for 6 months
• Salary slips for 2 months (if applicable)
• Partnership deed/ company MOA/ AOA/ COI (if applicable)
• The primary banking account of the applicant should have a minimum vintage of 1 year
• Property documents such as sale deed, house tax receipt, electricity bill