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About Unsecure Business Loan

nsecured business loan for small and medium enterprises (SMEs) is a kind of loan that is provided by Banks/NBFCs (Non-banking Financial institutes) in India without any collateral/securities given to the financer by the borrower against the loan.


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Why apply online for an unsecured business loan at iservefinancial?

iServefinancial offer you a platform without any additional charges that enable you to check your unsecured business loan eligibility online from 15 plus lenders. You can provide your basic income and personal details to know the following:
  • Your loan eligibility
  • Compare rate of interest available in India
  • Calculate EMI
  • Know the tenure available for business loans

Best Deal for Small unsecured business loan in India.

Best Deal for Small unsecured business loan in India

Small Business Loans/Unsecured Business Loans
What makes your business loan the best deal is the right mix of:
  • A good financer
  • Lowest rate of interest on business loan
  • Highest Tenure
  • Lowest EMI
  • Lowest processing fees
  • Lowest or nil pre-payment charges
  • Offline doorstep service and advisory for smooth and hassle free processing and disbursal
iServefinancial, ensures getting you the right mix of a lender, best rate of interest, lowest processing fees, nil pre-payment charges (foreclosure charges), highest tenure, lowest EMI and superb doorstep assistance for your business loan. This creates a hassle free experience for your borrowing requirements.

Small Unsecured Business Loans for Small and Medium Enterprises in India.

Small Unsecured Business Loans for Small and Medium Enterprises in India


Unsecured business loan for small and medium enterprises (SMEs) is a kind of loan that is provided by Banks/NBFCs (Non-banking Financial institutes) in India without any collateral/securities given to the financer by the borrower against the loan. Traditionally financers require a borrower to put an asset (moveable or immoveable) on the line in order to qualify for the funding requirement, but an unsecured business loan (BL) does away with this requirement.

Who is eligible to take an unsecured business loan (BL)?

Financial institutes in India offer small unsecured business loans to Doctors, Architects, consultants, proprietorship firms, partnership firms, Private limited companies, closely held limited companies and others based on their overall profile and the latest 3 year financials.
  • Unsecured Business Loan for Proprietorship firms
  • Unsecured Business Loan for Partnership firms
  • Unsecured Business Loan for private limited companies
  • Unsecured Business Loan for limited companies (closely held)
  • Unsecured Business Loan for listed companies
  • Unsecured Business Loan for doctors
  • Unsecured Business Loan for Architects
  • Unsecured Business Loan for consultants

Which are the sectors or industries that can apply for an unsecured business (BL) in India?

In India, banks and non-banking financial corporations (NBFCs) offer small business loans to manufacturers, service providers, Traders and consultants based on their overall profile and financial statements without taking any collateral/security. Below is the list of industry specific business loans offered by lenders:
Small Unsecured business loans for Manufacturers in India
  • Unsecured business loans for engineering manufacturers
  • Unsecured business loans for automobile manufacturers
  • Unsecured business loans for chemical manufacturers
  • Unsecured business loans for pharmaceutical manufacturers
  • Unsecured business loans for dairy manufacturers
  • Unsecured business loans for packaging manufacturers
  • Unsecured business loans for food manufacturers
  • Unsecured business loans for agricultural manufacturers
  • Unsecured business loans for fertilizer manufacturers
  • Unsecured business loans for jewellery manufacturers
Small Unsecured business loans for Service Providers in India
  • Unsecured business loans for hospitality service providers
  • Unsecured business loans for logistics service providers
  • Unsecured business loans for clearing and service providers
  • Unsecured business loans for education service providers
  • Unsecured business loans for doctors
  • Unsecured business loans for engineers
  • Unsecured business loans for Chartered Accountants (CAs)
  • Unsecured business loans for consultants
  • Unsecured business loans for private and government contractors
Small Unsecured business loans for traders in India
  • Unsecured business loans for retailers
  • Unsecured business loans for wholesalers
  • Unsecured business loans for stockists
  • Unsecured business loans distributors
  • Unsecured business loans for super-stockists

End-use of an unsecured business

Banks and NBFCs offer an unsecured business loan for one or more of the following purposes:
  1. Expansion of business
  2. Buying machinery, fixed assets and equipment
  3. Business loans for working capital requirements
  4. Buying raw materials
  5. For construction of office space
  6. For construction of factory premises

Features and benefits of unsecured business loans

Following are the key features of business loans:
  • Quick & Fast processing
  • Offered without any collateral/ security
  • Minimum loan amount Rs. 3 lacs
  • Maximum loan amount up to Rs. 5 crores
  • Loan tenure from 12 to 48 months
  • Rate of interest starts from 13%
  • One-time processing fee of 2-3%
  • BL for a wide range of purposes
  • Affordable rate of interest
  • Customised repayment options
In addition to all the above features, if you are taking an unsecured business loan through iServefinancial, our Relationship Manager (RM) will provide door step service for documentation as well as excellent post sales service.

iServefinancia’sl RM will provide you offers from all the financers in the market and can help you to raise higher loan amount for all your business loan requirements.

The maximum loan amount and tenure offered by banks/ NBFCs may vary from bank to bank, based on the policy of the financer. Additionally, the rate of interest and processing fees vary based on the borrower’s profiles, credit score and loan requirement.

Banks and NBFCs offer unsecured business loans for one or more of the following purposes:

  1. Expansion of business
  2. Buying machinery, fixed assets and equipment
  3. Business loans for working capital requirements
  4. Buying raw materials
  5. For construction of office space

Why to take an unsecured business loan and not a Loan against property?

A business owner or borrower can take an unsecured business loan and not a loan against property in the following situations:
  1. Require funds very quickly may be within 2- 10 days’ time frame.
  2. Borrower is unable to provide collateral against the loan.
  3. Borrower requires funds for comparatively shorter period.
  4. Require to close the loan within 12 months.
  5. Not willing to offer any collateral for loan.

Business Loan eligibility criteria

If you are applying for a BL with any lenders in India, you should meet the following criteria:
  • The business you are running on which you want to take a BL should have been operating for a minimum period of 3 years.
  • Minimum turnover/ Revenue of Rs. 40 Lacs
  • Minimum profit of Rs. 1 Lac
  • Clears repayment history in all the running or previously closed loans.
  • Good CIBIL score.

Documents required for small unsecured business loans

KYC Documents required for business and promoters of the company:
  1. Identity Proof - Valid Passport copy/ Valid driving license copy/ Aadhar Card
  2. Signature Proof - Pan card copy
  3. Residence address proof – Ration card copy/ electricity bill/ passport copy
  4. Date of birth proof - Valid Passport copy
  5. Proof of office address - Electricity bill/ telephone bill
  6. Proof of Business- Shop & establishment Act (as applicable in your state)
  7. Business profile on a company letter head.
  8. MOA&AA if it’s a private limited company.
  9. Partnership deed if it’s a partnership company
Financial documents required for a business loan:
  1. Latest 3 years audited report (including balance sheet, profit & loss account, list of creditors and debtors, all the schedules of balance sheet, form 3cb and 3cd).
  2. Latest 3 years income tax return.
  3. Latest 3 years’ computation of income.
  4. Latest 12 months’ bank statement of all your current and saving accounts.
  5. Sanction letter of all running loans with the repayment track.
  6. Closure letter of all the loans closed during last 12 months.

Balance Transfer on EMI

Switch your other bank Unsecure Business Loan/loan outstanding to HDFC Bank Unsecure Business Loan

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