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Unsecured Business Loan in Jun 2018

Last Updated 18th Jun 2018

Business Loan Interest Rates in

If you are running a business in and looking for a loan to expand your business and meet your working capital financing, availing an unsecured business loan can be good option for you. There are many banks and NBFCs in that offer loans without collateral to businessmen and SMEs.


Product Features Loan Against Property Unsecured Business Loan
Maximum Loan amount Up to 60% of the property value Rs. 10 lakhs to Rs. 5 crore
Loan Tenure 5 - 15 years 1-3 years
Interest Rate 13.50% – 15% 13.50% onwards
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When should you opt for unsecured business loan and not loan against property?

  • You are unable to or not willing to provide a collateral or security such as property or deposit
  • You need money for a relatively shorter period of time
  • You need the money real fast and with minimal documentation within 3 - 15 days
  • You need flexible eligibility norms based on annual turnover or cash profits as opposed to reported income or profits

Key Features

Parameter Description
Eligible Entities Self proprietorships, partnership firms, private limited companies, doctors, self employed professionals with a minimum annual turnover of Rs 25 lakh for manufacturers and Rs 50 lakh for traders
Minimum Loan Amount Rs 5 lakh
Maximum Loan Amount Up to Rs 1 crore, in select cases up to Rs 5 crore
Interest Rate 14-22%, floating rate of interest
Loan Tenure 1-3 years. Few lenders offer loans of up to 5 years in select cases
Processing Fees 2-3%
Prepayment Penalty As per the loan agreement
Loan Amount Eligibility

Lenders use multiple ways to estimate the eligibility

  • Turnover product, where an industry margin of up to 15% is applied on the turnover to estimate the income of the borrowers
  • DSCR product where eligibility is estimated using the debt repayment capacity of the borrower
  • Other Surrogate income products for loan amount of less than Rs 10 lakh
Documents Required
  • Last two years Income Tax Returns that have been filed on time
  • Bank Statements of last six months
  • VAT number, registration certificate etc
  • Professional degree and registration number

What is the process for obtaining unsecured business loan?

  • Compare loan offers of multiple banks to identify the best loan deals available on MyLoanCare. Key parameters one should compared are loan amount eligibility, interest rate, processing time and other terms such as prepayment penalty and processing fees.
  • Apply for the identified bank loan and submit required documents. Our loan advisor will ensure that it becomes a hassle free experience for you
  • Appraisal of the loan application by bank or NBFC. A credit manager will make a visit to your office or factory premises.
  • Credit approval by the bank or NBFC
  • Loan disbursement to your account after signing of loan agreement.

Documents For Business Loan

Documents for Business Loan Application
  • Signed Application Form
  • Identity Proof (PAN)
  • Residential Address Proof
  • Last 3 years ITR (self and business), profit and loss account, balance sheets certified/audited by a CA.
  • Last 12 months bank account statement (self and business)
  • Certificate and Proof of Business Existence
  • Business Profile
  • Office address - ownership/ lease / rent agreement/ utility bill

Businesses Eligible for Business Loan

  • Small businesses, SMEs, Small and mid size Corporate
  • Self proprietorships, partnership firms, private limited companies, trusts, societies etc
  • Manufacturing firms, traders, wholesalers, retailers, exporters, distributors and resellers
  • Service Providers such as Chartered Accountants (CAs), interior architects, consultants, interior architect, schools, playschools and educational institutions
  • Self Employed professionals such as doctors, CA, MBA, engineers & architects and people with professional degrees

Business Loan Eligibility Calculator

Why MyLoanCare???

Nowadays, almost all banks offer attractive schemes on Business Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Business Loan rates. MyLoanCare helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cashbacks and refer and earn benefits.

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Business Loan News - Jun 2018
  • 2018-06-18 : Rs. 6 lakh crore Mudra loans disbursed to 12 crore beneficiaries news
    The Prime Minister in his latest address has said that loans worth Rs. 6 lakh crore have been disbursed to 12 crore beneficiaries under the Mudra scheme. PMMY was launched on April 8, 2015, for providing loans to the non-corporate, non-farm small/micro enterprises, of up to Rs 10 lakh.
  • 2018-06-18 : Finance ministry partners with e-commerce to lend under PMMY news
    Finance ministry has partnered with more than 25 e-commerce firms, including major players like Amazon, Flipkart, Ola, and Uber, to provide easy finance to small entrepreneurs. The three-way partnership between lenders, industry and the government aims to facilitate small business loans under the Pradhan Mantri Mudra Yojana (PMMY).
  • 2018-06-18 : HDFC bank hikes Business Loan Rates news
    HDFC Bank has revised its business loan rates, and launched special offers for the month of June. The revised rates are effective for logins after 04th June 2018. The new rates for self employed business segment start at 17.40%, while that of professionals start at 16.05%.
  • 2018-05-16 : PNBHFL more profitable than PNB
    PNB Housing Finance Ltd. has stood to be more valuable than Punjab National Bank, the parent whose market-capitalisation has fallen drastically after it reported a Rs 14,000-crore fraud. PNB had reported its biggest-ever quarterly loss at Rs 13,417 crore in the quarter ended March, while the assets under management and profit of PNB Housing Finance have grown over 40% each in the fourth quarter.
  • 2018-05-15 : Allahabad Bank barred from granting fresh loans
    Allahabad Bank has been restricted from granting loans and raising high-cost deposits by the RBI. The bank cannot expand its loans, nor make any fresh capital investments. Allahabad Bank had reported net loss of around Rs 3,510 crore for the March quarter due to more than three-time rise in its provisions for bad loans.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.