Features and benefits
-
Easy repayment options
This loan gives you the option to pick a comfortable tenor that ranges up to 96 months.
-
Flexi facility
For added financial flexibility, you can opt for the Flexi loan facility. This allows you to reduce EMI outgo by up to 45%*.
-
Personalised loan deal
To expedite loan processing and avail of special terms, check for a pre-approved loan offer by sharing basic details.
-
Online loan management
Access key loan information such as loan statements and manage your EMIs digitally with the online customer portal.
Unsecured business loans have an attractive advantage over secured loans in that you do not have to provide collateral to avail of them. This means that taking an unsecured loan in India for business expenses helps safeguard your assets. In addition to this benefit, an unsecured business loan comes loaded with several attractive features.
Eligibility criteria and documents required
-
Age
24 to 80 years* Years
(* Age should be 80 years Years at the time of Loan Maturity)
-
CIBIL score
685 or higher
-
Work status
Self-employed
-
Nationality
Indian
-
Business vintage
At least 3 years
You will need the following documents to apply
- KYC documents
- Proof of business ownership
- Bank statements of the previous months
- Other financial documents
Interest rate and charges
We ensure 100% transparency with all fees and charges applicable to our loans. Refer to the following table for the interest rate and a breakup of a few fees you may have to pay.
| 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 charge | 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 Term Loan (as applicable below) - Up to Rs. 6,499/- (inclusive of applicable taxes) for loan amount less than Rs. 1000000/-. Up to Rs. 8,999/- (inclusive of applicable taxes) for loan amount from Rs. 1000000/- to Rs. 1499999/-. Up to Rs. 13,999/- (inclusive of applicable taxes) for loan amount from Rs. 15,00,000/- to Rs. 24,99,999/- Up to Rs. 16,999/- (inclusive of applicable taxes) for loan amount of Rs. 25,00,000/- and above. *The above Flexi facility charges will be deducted upfront from the loan amount *Loan amount includes approved loan amount, insurance premium and VAS charges |
| Penal interest | Delay in payment of instalment(s) shall attract Penal Charge at the rate of 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
| Pre-payment charges | Full Pre-payment
Part Pre-payment
|
| Stamp duty (as per respective state) |
Payable as per state laws and deducted upfront from the loan amount. |
| Annual maintenance charges | Term Loan – Not Applicable Flexi Term Loan (Flexi Dropline): Up to 0.413% (inclusive of applicable taxes) of the Dropline Limit (as per the repayment schedule) on the date of levy of such charges. Flexi Hybrid Term Loan: Up to 1.18% (inclusive of applicable taxes) of the Dropline Limit during Initial loan tenor. Up to 0.295% (inclusive of applicable taxes) of Dropline Limit during Subsequent loan tenor. |
| 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. Up to Rs. 8,999 (Inclusive of applicable taxes) for loan amount between Rs. 10,00,000 and 14,99,999. Up to Rs. 13,999 (Inclusive of applicable taxes) for loan amount between Rs. 15,00,000 and Rs. 24,99,999. Up to Rs. 16,999 (Inclusive of applicable taxes) for loan amount Rs. 25,00,000 and above. 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. |
Types Of Unsecured Business Loan
Unsecured business loans generally come in two main types:
- Line of credit – This is a flexible loan that allows you to borrow funds as needed. You can withdraw money multiple times and only pay interest on the amount you use. It’s ideal for managing recurring business expenses.
- Term loan – A term loan is suited for businesses that require a lump sum amount for specific capital needs, such as purchasing property, equipment, or machinery. These loans are offered based on your creditworthiness rather than collateral and typically have shorter repayment periods.
How to apply
- 1 Click on ‘APPLY ONLINE’ to open the online application form
- 2 Enter your basic information and input the OTP sent to your mobile number
- 3 Fill in your personal and business information
- 4 Upload the bank statement for the last 6 months and submit your application
Our representative will call you once you’ve applied for loan processing assistance.
*Conditions Apply
**Document list is indicative
Difference between secured loans vs. unsecured loans
- You can obtain an unsecured business loan without the need for collateral, while a secured loan requires you to pledge an asset (such as land, property, or gold) as security.
- Since unsecured loans do not involve collateral, they typically come with higher interest rates compared to secured loans. However, having a strong credit score can help you negotiate a more favourable rate.
- Unsecured business loans are usually approved more quickly than secured loans because there’s no need for time-consuming evaluation of asset-related documents.
- For secured loans, the loan amount is generally based on the value of the pledged asset, while with unsecured loans, the loan amount is primarily determined by your credit history.
- If you default on an unsecured loan, your credit score will be affected. In contrast, if you default on a secured loan, the lender has the right to seize and sell the pledged asset to recover the outstanding debt.
Frequently asked questions
Unsecured business loans are beneficial as they provide quick access to capital without requiring collateral, offering flexibility in usage, and helping businesses meet short-term financial needs without risking assets.
The maximum term for an unsecured business loan typically ranges from 1 to 5 years, depending on the lender and the borrower’s creditworthiness, with shorter terms commonly available for smaller loan amounts.
The maximum limit for an unsecured business loan varies by lender but generally ranges from ₹2 lakh to ₹80 lakh, with higher amounts possible for businesses with strong financials and credit histories.
An unsecured loan can be good for businesses needing fast, collateral-free financing. However, it may come with higher interest rates and shorter repayment terms compared to secured loans, depending on creditworthiness.
