Collateral-Free Unsecured Business Loans in India
India is brimming with business opportunities for young entrepreneurs and small business owners. When a business is in its nascent stage, there are numerous expenses to take care of, which might impact your monthly finances. However, your business’s growth should not be stunted because of a lack of funds.
In case you find yourself falling short of funds, you can apply for an unsecured Business Loan in India. These loans are suitable for micro, small, and medium enterprises (MSMEs), other small businesses, entrepreneurs, and sole proprietors.
Business Loans or Unsecured Small Business Loans are available at an attractive rate of interest, and you can use the funds for a wide range of business-related purposes. Read on to find out more about Business Loan eligibility, interest rates, and charges, and how to apply for fast unsecured Business Loans.
Unsecured Business Loan EMI Calculator
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EMI Amount = *
Unsecured Business Loan Interest Rates & Charges
Poonawalla Fincorp offers unsecured Business Loans at competitive interest rates and charges. Unsecured Business Loan interest rates are kept minimal for entrepreneurs and small business owners so that it does not increase the cost of borrowing, enabling them to focus on their business goals with ease.
Availability of an unsecured Business Loan is easy as the application process is fully digital. You can apply for a Business Loan online without any hassle. You just have to fill out the application form which is available on the lender’s website, await verification and confirmation, and the funds will be disbursed into your account almost instantly.
| Rate of interest | 15% to 28% p.a.* |
| Processing fees | Up to 3% plus applicable taxes |
| Bounce charges | ₹1,000 per bounce plus applicable taxes |
| Late Payment Charges | 3% per month |
| Loan Amount | ₹1 Lakh to ₹50 Lakhs |
| Lowest EMI per month | Starting from ₹3,467* per Lakh for 36 months |
| Loan Tenure | 6 - 36 months |
| Prepayment/Foreclosure Charges | 0%* If paid from own sources |
| Stamp Duty | At actuals (as per state) |
| No Other Hidden Charges | |
Unsecured Business Loan Eligibility Criteria
As funding needs can arise anytime for small business owners and entrepreneurs, most lenders have minimal Unsecured Business Loan eligibility criteria. Online applications are being offered by most lending institutions and non-banking financial companies (NBFCs). Hence, you can apply for a Business Loan quite easily and comfortably. Below are the eligibility criteria for Business Loans.
Age
Business Vintage
Annual turnover
- Age: - The applicant is required to be 24 years old at the time of loan application and 65 years old at the time of loan maturity.
- Business vintage: - The applicant’s business must have a business vintage of 2 years.
- Annual turnover: - The business should have an annual turnover of at least ₹6 Lakh.
Documents Required for Unsecured Business Loan
You only have to submit minimal documentation for your Business Loan application. Since the application process is digital, you just have to procure soft copies of your documents. These documents include KYC documents, business address proof, and other financial documents that are required for verification. Below is the list of documents required for a Business Loan.
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KYC Documents
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Business Address Proof
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Financial documents
KYC Documents
- Company PAN card, Director/ Proprietor/ Partner PAN Card, Aadhaar Card, Passport.
- Proprietor/ Partner/ Director PAN Card, Aadhaar Card, Electricity bill, Rent agreement/Passport
- Personal documents- All individuals/ Partners/ Director- PAN, officially valid documents, and proof of address
- Business documents- Business registration proof + Business address proof (if not the same as business registration proof)
Business Address Proof
- Utility bills/ Rent agreement
Financial Documents
- Bank account statement for the last 6 months
Unsecured Business Loan Features & Benefits
Business Loans can offer a host of benefits to small business owners who wish to expand their businesses but lack funds. The availability of these loans has become easier than ever due to the online business loan application process and minimal documentation requirements. This loan has many end-uses and can be used for managing Working Capital as well. Hence, it is also called an Unsecured Working Capital Loan.
The eligibility criteria of a Business Loan are also easy to fulfill. Since the loan is unsecured, you don’t have to worry about submitting collateral. The loan tenure is also flexible, which means you can choose a tenure at your convenience. Further, you can avail of a Business Loan for your enterprise at competitive interest rates with quick approval and disbursal.
Simplified Documentation Process
Competitive Interest Rates
Swift and Smooth Disbursal
Convenience of Online Process
How to Apply for an Unsecured Business Loan?
You can simply apply for an unsecured Business Loan (or an Unsecured Small Business Loan) online from the comfort of your home or office. Follow these simple steps to apply for an unsecured Business Loan.
Step 1: Visit the official website of your preferred lender Poonawalla Fincorp Limited
Step 2: On the home page, go to the dedicated section for Business Loan
Step 3: Before you apply, read the eligibility criteria carefully
Step 4: Click on ‘Apply Now’ under the Business Loan section
Step 5: Fill out the online application by inputting all the required details
Step 6: Await verification and confirmation from Poonawalla Fincorp
Step 7: Get funds disbursed instantly to your desired account and start your journey towards progress
Apply for Instant Unsecured Business Loan within 5 Minutes
Apply
Online
Apply Online
Click on Apply Now and enter your contact details.
Business
Details
Business Details
Enter your annual business turnover and other business details.
Verification
Verification
The application will then proceed for verification and assessment
Frequently Asked Questions - Unsecured Business Loan
You can get a Business Loan of up to ₹50 Lakh from an NBFC such as Poonawalla Fincorp.
The interest rate on an unsecured Business Loan from Poonawalla Fincorp starts from an affordable rate of 15% p.a.*
You can get an unsecured Business Loan from Poonawalla Fincorp for a loan tenure that ranges from 6 to 36 months.
You can use an online Business Loan EMI calculator to determine your monthly EMIs to plan a repayment strategy. You just have to enter your loan amount, loan tenure, and the interest rate offered to you.
You can repay your unsecured Business Loans via Electronic Clearing Services (ECS), Post-Dated Cheques (PDCs), and Direct Debit.
You can get an unsecured Business Loan from Poonawalla Fincorp almost instantly if you fulfill the eligibility criteria. The online application ensures speedy disbursal.
An example of an unsecured loan is a Personal Loan. In this type of loan, there is no requirement for collateral to secure the borrowing. Instead, the loan approval is primarily based on the borrower's creditworthiness, income, and repayment capacity. Personal Loans are typically used for various purposes, such as debt consolidation, home improvements, medical expenses, or unexpected financial needs. Since these loans are unsecured, the interest rates are usually higher compared to secured loans, as they pose a higher risk to the lender. Thus, lenders rely heavily on the borrower's credit history and financial stability to assess the risk involved in granting the loan.
An unsecured business loan is a type of loan that does not require collateral or assets to secure the loan amount. Unlike secured loans that are backed by specific assets, unsecured loans are granted based on the borrower's creditworthiness, business financials, and repayment ability. These loans provide businesses with access to funds for various purposes, such as working capital, expansion, or equipment purchase, without the need to pledge collateral. Since they are not secured by assets, unsecured business loans generally have higher interest rates and stricter eligibility criteria. Lenders rely on the borrower's credit history and financial stability to assess the risk and determine loan terms.
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