Unsecured Business Loan

An unsecured business loan stands out as a financing option that doesn't demand any collateral or assets as security. Unlike secured loans, where assets such as property or equipment are used as guarantees, unsecured business loans depend more on the borrower's creditworthiness and the financial stability of the business.

These loans grant businesses access to capital without the threat of losing assets if they cannot repay the loan. The interest rates might be slightly higher compared to secured loans because of the increased risk of lenders without collateral.

To access get to unsecured business funding, Buddy Loan helps connect you with the most suitable lender, at interest rates starting from 11.99% p.a

Features of Unsecured Loans for Business

Here are features of unsecured business loans that make them an apt choice for your diverse entrepreneurial ventures and needs:

Interest Rate

Get unsecured business
loan at an interest
rate of 11 99% n a

Quick Disbursal in 24 hours

Get your quick loan disbursal after approval

Hassle free documentation

Avail unsecured
business loan at
minimum documention

Repayment Tenure

Choose your repayment
tenure that randes
upto 5 years

Loan upto 15Lakhs

Avail loan upto 715
Lakhs without collateral

0 Collateral

Get unsecured business
loan without anv securitv

Eligibility Criteria of Unsecured Loans for Business

To get a business loan approved, you must meet a set of eligibility criteria. Refer to the table below to know whether you are eligible for a personal loan.

  • Age: 21 - 65 (at the time of loan maturity)
  • Business Venture - Min 2 years or above
  • Annual Turnover - As per banks
  • Credit Score - 750 or above

Unsecured Business Loan Interest Rates

Interest Rate 11.99% p.a. onwards
Processing Fees 0%-6%
Loan Tenure 1 to 5 years
Pre-closure Charges 2% - 5%
Note: Please be informed that the interest rates and other charges are subject to change per the market

Fees & Charges of Unsecured Business Loans

Knowing the varied rates aids in comparing costs, guiding smarter borrowing decisions, and effective budget planning for timely repayments, aligning with your business goal. Hence, to make a more efficient decision, follow the table below that entails fees and charges for unsecured business loans provided by various banks and NBFCs:

Banks/NBFC Interest Rate
State Bank of India (SBI) 8.90% onwards
HDFC Bank 10.00% - 22.50% p.a.
ICICI Bank 12.50% - 13.60% p.a.
Axis Bank 14.65% - 18.90% p.a.
Bajaj Finserv 9.75% - 30% p.a.
mCapital Starting at 24% p.a.
IndiaLends 10.25% p.a. onwards
Protium 18% p.a. onwards
ZipLoan 12% - 18% p.a. (Flat ROI)
Note: Please be informed that the interest rates are subject to change per the market.

Unsecured Business Loan EMI Calculation

Calculating the Equated Monthly Installment (EMI) for an unsecured business loan holds immense benefits for effective financial planning. It provides a clear projection of the monthly repayment amount, facilitating budgeting and ensuring the allocation of necessary funds without disrupting business operations.

EMI calculations empower borrowers to perform comparative analyses among different loan options offered by various lenders. By adjusting factors like loan amount, tenure, and interest rates, businesses can discern the most suitable loan terms that align with their repayment capacity and preferences. Using an EMI Calculator aids in informed decision-making, enabling borrowers to choose repayment plans that harmonize with cash flow projections.

Monthly EMI 86
Principal Amount 1,000
Total Interest 32
Total Amount 1,032.00

Year Month Principal (A) Interest (B) EMI (A+B) Balance Loan Paid to Date (%)

Documents Needed for Unsecured Business Loan

To apply for a personal loan, you need to provide some basic documents as proof of your identity and income. Here’s a list of documents required for a personal loan.

Documents for Salaried Employee

  • Proof of Identity: Passport, Voter’s ID, Driving License, or PAN Card
  • Proof of Residence: Passport or utility bills
  • Proof of Income: Bank statement of salary account for the past two years

Documents for Self-Employed

  • Proof of Identity: Passport, Voter’s ID, Driving License, or PAN Card
  • Proof of Residence: Passport or utility bills
  • Proof of income: Audited financials of the past two years

Unsecured Loans Vs Secured Loans

Here's a breakdown of the differences between unsecured loans and secured loans in bullet points:

Unsecured Loans Secured Loans
No collateral required Collateral needed
Higher risk for lenders Lesser risk for lenders
Quick approval Longer processing time
Higher interest rates Lower interest rates
Lower borrowing limits Higher borrowing limits

Types of Unsecured Loans for Businesses

Here are the various unsecured loans that cater to business needs, providing flexibility and quick access to capital for growth, operational expenses, and various ventures.

Business Lines of Credit: Flexible revolving credit lines that allow businesses to borrow up to a predetermined limit, paying interest only on the amount used.

Short-Term Business Loans: Fast access to funds for immediate needs, typically repaid over a short period with fixed or daily payments.

Merchant Cash Advances: Advances based on future credit card sales, repaid through a percentage of daily sales.

Working Capital Loans: Designed to cover day-to-day operational expenses, ensuring smooth business operations.

Term Loans: Fixed-amount loans with set repayment terms and regular installments, commonly used for specific business purposes like expansion or equipment purchase.

Unsecured Business Credit Cards: Convenient credit lines for business expenses, offering rewards and benefits with no need for collateral.

Steps to Apply for Unsecured Business Loan

Securing an unsecured business loan is a straightforward process designed to provide quick financial help without collateral requirements. Here are the simplified steps to help guide you through the application process, ensuring swift access to the funding your business needs.

  • Step 1: Visit buddyloan.com or Download the Buddy Loan app (Android or iOS).
  • Step 2: Open the business loan application page. Enter your mobile number and OTP.
  • Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
  • Step 4: Choose if you have a Business Proof (Yes/ No)
    - If ‘Yes’ (If you have a business proof), enter your business and personal details.
    Or - If ‘No’ (If you do not have a business proof), choose the profession type and enter your personal details.
  • Step 5: Provide income details and Click the ‘Submit’ button.

Get Instant Funds for Your Business with Buddy Loan!

Accessing immediate funds for your business is now easier with Buddy Loan!

We understand the urgency of your financial needs and offering quick loan‌ disbursal within 24 hours. Buddy loan helps you meet the right lender. We have a pool of Whether it's for expanding operations, managing cash flow, or seizing new opportunities, our seamless process ensures quick access to the capital. With Buddy Loan, get support for business at an interest rate of 11.99% p.a.!

Apply for a business loan now!

Frequently Asked Questions

An unsecured business loan is a type of funding where businesses can borrow money without providing collateral or assets as security. These loans are based on the creditworthiness of the borrower and the business's financial health, rather than requiring tangible assets as a guarantee.

The key difference lies in collateral requirements. Unsecured business loans do not cause collateral, relying on creditworthiness, while secured loans require assets (like property, inventory, or equipment) as security against the borrowed amount.

Various businesses, including small and medium-sized enterprises (SMEs), startups, and established companies across different industries, can qualify for unsecured business loans based on their financial stability, credit history, revenue, and business plans.

No, collateral is not required for unsecured business loans. These loans are granted based on the borrower's creditworthiness and the business's financial standing

Lenders consider various factors, such as the business's credit history, revenue, financial statements, cash flow, profitability, and the borrower's credit score when determining the loan amount for unsecured business loans.

Interest rates for unsecured business loans start at 11.99% p.a.

Repayment terms for unsecured business loans can vary but typically range from 6 months to 5 years, depending on the lender and the loan amount.

Yes, startups can qualify for unsecured business loans, but eligibility might depend on the startup's financial stability, business plan, revenue projections, and the creditworthiness of the founders. Lenders might evaluate the viability and potential of the startup before approving the loan.

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