loan is a funding support offered by financial institutions to meet the day-to-day business requirements. Business loan can be availed by individuals, MSMEs and many other entities. Applicants who own house, shop, office and godown have more chances of loan approval, as banks consider them more reliable in repaying loans in time. Most of the banks do not require collateral or security to be submitted to avail unsecured business loan.
The minimum loan amount offered starts from Rs. 30,000 and is usually offered by Non-Banking Financial Companies (NBFCs), Small Finance Banks (SFBs) or Micro Finance Institutions (MFIs), whereas applicants can avail collateral-free business loans maximum up to Rs. 1 crore. Small business loans are also available for MSMEs and startups.