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
Here are features of unsecured business loans that make them an apt choice for your diverse entrepreneurial ventures and needs:
Get unsecured business
loan at an interest
rate of 11 99% n a
Get your quick loan disbursal after approval
business loan at
Choose your repayment
tenure that randes
upto 5 years
Avail loan upto 715
Lakhs without collateral
Get unsecured business
loan without anv securitv
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.
|11.99% p.a. onwards
|1 to 5 years
|2% - 5%
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:
|State Bank of India (SBI)
|10.00% - 22.50% p.a.
|12.50% - 13.60% p.a.
|14.65% - 18.90% p.a.
|9.75% - 30% p.a.
|Starting at 24% p.a.
|10.25% p.a. onwards
|18% p.a. onwards
|12% - 18% p.a. (Flat ROI)
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.
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
Documents for Self-Employed
|No collateral required
|Higher risk for lenders
|Lesser risk for lenders
|Longer processing time
|Higher interest rates
|Lower interest rates
|Lower borrowing limits
|Higher borrowing limits
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.
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.
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.!
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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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