What is Unsecured Business Loan

Unsecured Business Loan are the financial product that is introduced by the bank or NBFCs to the eligible business owners. Any person who passes the eligibility criteria can avail of the unsecured loan for business. This article will simplify the process of unsecured business loans in India and will also tell you the ways to avail of unsecured business loans online. The term secured or unsecured loans might confuse you a bit if you are not familiar with the loan terms.

Secured Loans are the one that needs collateral to be pledged in the Banks and the NBFCs for availing of the loans. The land, property, or any other thing that you have provided to the bank shall be kept by the lender till you complete the loan. On the completion of the loan tenure, the collateral or the pledged asset shall be returned to the borrower. If the borrower fails to repay the loan then the lender has full right to take possession of the collateral. The interest rate of the secured loan starts from 8.0% P.A. Borrower needs to complete the documentation that includes property documents, employment proof, ITR, KYC Documents, Udhayam Certificate (in case you are taking a loan for business purposes), etc. On submitting the documents a borrower will receive a soft approval of the business loan. If the borrower agrees to it then the lender proceeds to disburse the loan amount.