Business Loan is a loan taken by aspiring businessmen to finance their startup businesses and the loan being an ‘unsecured’ one requires no collateral or security to be deposited by the borrower to the lender. Generally startup companies & SMEs take such a loan for purposes like business expansion, equipment financing or project financing Since this type of loans involve no collateral or security to be pledged by the borrower while taking the loan, the lender is always placed at sufficiently high risk which is why the rate of interest on such loans is high enough. People who take unsecured business loans need to have a pretty good credit history. Also the credit scores of such individuals should be high enough so that they can stand against the high interest rates.
The maximum loan amount disbursed as ‘Unsecured business loan’ usually falls between 15lakhs to 1 Crore. People generally borrow these loans as term loans which could be repaid through successive EMIs. The loan tenure of such loans usually ranges between 1year and 3years and the interest rates charged are around 16% to 25%.
To get an unsecured business loan, all you need is a good credit report and a pro-active attitude to succeed. Unsecured business loans come as a boon for businessmen starting from ground zero. The loans guarantee a consistent flow of cash for a seamless and sustainable business journey. It is a great option for those who lack enough capital to start a business or lack a security/collateral that could be presented prior to getting a loan. These days you can get such loans through many online platforms. Quick personalized quotes, quick approval and competitive rates of interest are the key features you could enjoy if you wish to avail the online route to get this type of unsecured loans.