Collateral-free loans in India are available for Micro, Small, and Medium Enterprises (MSMEs) and individuals who need money for different purposes. If you run an MSME, you can use these loans to grow your business, manage rising expenses, buy stock, or handle cash flow during slow seasons. These loans are also helpful during medical emergencies or when your insurance doesn’t cover the full amount. Check your business loan eligibility instantly to see how much you can borrow without collateral.
What is a Collateral Free Business Loan?
A collateral-free business loan is a financing option where borrowers do not need to pledge assets as security. Lenders approve these loans based on creditworthiness, business performance, and repayment capacity. With Bajaj Finance, you do not need to risk your assets. You can avail of a sizable sanction easily and without any long-winding processing hassles. Our unsecured business loans are easy to apply for using a short and simple online form. All you need to do is meet the simple eligibility criteria and submit minimal documents to enjoy fast approval in just 48 hours*.
Features and benefits of collateral-free business loans
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Flexi perks
Avail of the Flexi facility on the collateral free business loan to reduce EMIs by up to 45%* by paying only interest as EMIs.
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Borrow up to Rs. 80 lakh
Use this ample funding for any business-related needs. Moreover, be sure to use the Business Loan EMI Calculator to borrow efficiently.
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Easy repayment
Choose a flexible tenure that ranges from 1 year to 8 years for maximum repayment comfort.
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Digital tools
Use our online loan account to access your loan statement and manage your EMIs at any time and from anywhere.
Any asset you own, be it personal or business-related, can be used financially. You can use it as collateral and borrow an amount based on its value. This is usually the approach taken when you require a large sum of money, but with the collateral-free business loan from Bajaj Finance, you get collateral free loan.
Types of collateral-free loan for businesses
There are different types of collateral-free loans that businesses in India can choose from:
- Unsecured business loans: These are given without any security, based on the borrower's credit history and repayment ability.
- Business credit cards: These work like regular credit cards and help businesses manage spending, pay bills, and handle cash flow—no collateral needed.
- Invoice financing: The lender gives you money based on your unpaid invoices. You don’t need to provide any security.
- Merchant cash advance: This loan is based on your daily credit card sales and doesn't require any collateral.
- Micro loans: These are small loans given to businesses with little or no credit history, often supported by the government or non-profit groups.
- Personal loans for business use: Some banks and financial institutions offer personal loans that can be used for business purposes without asking for collateral.
Eligibility criteria and documents required
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Age
24 years to 80 years* Years
(*age should be 80 years Years at the time of loan maturity).
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Nationality
Indian
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Work status
Self-employed
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Business vintage
3 years
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Credit Score
685 or higher
Documents required for collateral-free business loans
- KYC documents - Aadhaar/ passport/ voter’s ID
- PAN card
- Proof of business ownership
- Other financial documents
Interest rate and fees applicable on collateral-free business loan
With our loan, you can borrow affordably and without the worry of hidden charges. Refer to this table for a breakup of a few of the fees and charges applicable.
| Type of fee | Applicable charges |
| Rate of interest | 14% to 25% per annum |
| Processing fees | Up to 4.72% of the loan amount (inclusive of applicable taxes) |
| Bounce charges | Rs. 1,500 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
| Flexi Facility Charge | Term Loan - Not applicable Flexi Term Loan (Flexi Dropline) - Up to Rs. 999/- (inclusive of applicable taxes) Flexi Hybrid Loan (as applicable below) -
*The above Flexi facility charges will be deducted upfront from the loan amount *Loan amount includes approved loan amount, insurance premium, VAS charges, and documentation charges. |
| Penal Charge | Delay in payment of instalment(s) shall attract Penal Charge of 36% per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
| Prepayment charges | Full Pre-payment
Part-prepayment –
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| Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount |
| Broken Period Interest/ Pre-EMI Interest | Method of recovery of "Broken Period Interest/Pre monthly instalment Interest" would be as follows: Scenario 1: If Loan is disbursed on 1st or post 10th of the month: For Term Loan : BPI amount will be capitalised, i.e added to Principal amount on Due date / Deducted from disbursement Scenario 2: If Loan is disbursed between 3rd and 10th of the month: |
| Annual maintenance charges | Term Loan: Not applicable Flexi Term Loan (Flexi Dropline): Up to 0.413% (Inclusive of applicable taxes) of the Total Withdrawable Amount Flexi Hybrid Loan: Up to 1.18% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Initial loan tenure. Up to 0.413% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Subsequent loan tenure. |
| Principal Holiday Facility Fees | Principal Holiday (as applicable below) - (Inclusive of applicable taxes) Up to Rs. 6499 (Inclusive of applicable taxes) for loan amount less than Rs. 10,00,000. Note- The above principal holiday facility fees will be deducted upfront from loan amount. Loan amount includes approved loan amount, Insurance Premium and VAS Charges. |
| Legal and incidental charges | Recovery of charges |
How to apply for collateral-free business loan
To apply for the business loans without collateral, simply follow these steps:
- 1 Click on the ‘APPLY' button on this page.
- 2 Enter your 10-digit mobile number and OTP.
- 3 Fill in the application form with your basic details, such as your full name, PAN, date of birth, and PIN code.
- 4 Once you enter all your details, please click on ‘PROCEED’ to visit the loan selection page.
- 5 Enter the loan amount that you need. Choose from our three business loan variants – Term, Flexi Term, and Flexi Hybrid.
- 6 Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’.
- 7 Complete your KYC and submit your business loan application.
Save time—check your pre-approved business loan offer before applying.
Frequently asked questions
Collateral requirements depend on the type of business loan that you are opting for. Some loans, like secured loans, require collateral, while collateral-free loans, such as unsecured loans, do not necessitate assets as security.
With Bajaj Finance, you can get a collateral free business loan of up to Rs. 80 lakh. The final loan amount depends on your creditworthiness, and business financials.
Under the Coverage of Collateral Free Loans (CGTMSE), Micro and Small Enterprises, as defined under the MSMED Act, can avail collateral-free loans of up to Rs. 5 cr. The actual amount sanctioned may vary depending on the lender’s evaluation and the borrower’s eligibility.
