Benefits that unlock
financial stability
No collateral or guarantee is needed
Obtain a loan without pledging any security.
Attractive Interest Rates- 16% onwards
Competitive interest rates ensure that customers can access funds at affordable terms.
Flexible loan tenure
The repayment period ranges from 12 to 36 months, allowing you to choose a tenure that aligns with your repayment capacity and business cash flow.
Minimum documentation
Hassle-free loans up to ₹30 lakhs
Loan amounts range from ₹1 lakh to ₹30 lakhs, providing the flexibility to support various business needs.
No branch visit required
100% online loan application
Who is eligible for
Unsecured Business Loan?
Documents required (Same for all)
- Business Proof : Any 2 of the following - GST certificate, Shop Act License, FDA Certificate, Udyam Aadhaar, IEC Certificate, FSSAI Certificate
- PAN Card
- Aadhaar Card
How to apply for
Unsecured Business Loan in 3 easy steps?
- Enter your Personal, Business & Bank details to get a great offer.
- Complete your KYC and submit the required documents.
- Get the funds directly into your bank account.
Detail overview of Busines Loan
Unsecured business loans are a versatile financing option ideal for businesses seeking quick access to funds without collateral. These loans can be utilized for various purposes, such as working capital, business expansion, inventory purchase, and cash flow management. One of the critical benefits of unsecured loans is their faster approval process, allowing businesses to focus on growth rather than navigating complex financing procedures. Additionally, they offer flexible repayment terms, making it easier for businesses to manage their finances effectively.
Unsecured business loans from Unity Small Finance Bank are particularly beneficial for small to medium-sized enterprises (SMEs) that may not have significant assets to pledge as collateral. These loans allow businesses to leverage funds based on their creditworthiness and business performance rather than tangible assets. This flexibility makes unsecured business loans a practical solution for addressing immediate financial needs and seizing growth opportunities.
Types of Business Loans
There are several types of unsecured business loans available to cater to different business needs:
1. Term Loans : A lump sum amount that is repayable over a fixed period, usually with a predetermined interest rate and repayment schedule.
2. Working Capital Loans : Short-term loans designed to cover daily operational expenses, ensuring smooth business operations during cash flow gaps.
3. Business Line of Credit : A flexible credit facility that allows businesses to withdraw funds as needed up to a predetermined credit limit, similar to a credit card, but specifically for business purposes.
4. Merchant loan : A merchant loan, commonly known as a merchant cash advance (MCA), is a favored choice for businesses seeking immediate working capital without the strict criteria of traditional loans.
Selecting the right type of unsecured loan can provide the necessary financial support for your business to thrive and grow.
Interest Rates and Charges
Understanding the costs involved helps you manage your finances better. Here are the details:
- Processing Fee : Up to 3% of loan amount (deducted from disbursal amount)
- Rate of Interest : 16% onwards
When Should You Consider an Business Loan?
Unsecured business loans are suitable for various scenarios, including:
1. Business Expansion : When planning to scale operations or enter new markets, an unsecured loan can provide the necessary funds without risking existing assets.
2. Inventory Purchase : To stock up for high-demand periods or launch new products, unsecured loans offer the capital needed to manage inventory efficiently.
3. Cash Flow Management : Ensuring smooth operations by bridging short-term cash flow gaps, allowing businesses to meet their financial obligations timely.
4. Machinery Purchase : Upgrading or acquiring new business equipment without pledging collateral, enabling businesses to stay competitive and productive.
Assessing your business needs can help determine if an unsecured loan is the right financial solution for you.
Difference Between Secured and Unsecured Business Loans
Understanding the distinctions between secured and unsecured business loans can help guide your decision:
1. Collateral Requirement : Secured loans require assets as collateral, while unsecured loans do not, making them accessible for businesses without significant assets.
2. Interest Rates : Secured loans generally offer lower interest rates due to reduced lender risk, whereas unsecured loans have higher rates reflecting the increased risk.
3. Eligibility Criteria : Unsecured loans have stricter criteria focusing on credit scores and business performance, while secured loans assess the value of the pledged assets.
4. Risk : Secured loans carry the risk of asset loss in case of default, while unsecured loans do not pose a risk to personal or business assets.
Evaluating these differences can help you choose the best financing option that aligns with your business needs and risk appetite.
