What Are the Key Features of an Unsecured Business Loan?
An unsecured business loan does not require collateral, making it suitable for small businesses. Key features include flexible repayment, quick approval, and eligibility based on credit history and income stability.
How Do I Apply for an Unsecured Business Loan?
You can apply by submitting an online application, providing KYC documents, income proofs, and business details. Lenders will assess your credit score and financial profile before approval.
Is Collateral Required for MSME Loans?
No, most MSME loans are collateral-free, especially under government-backed schemes. However, some lenders may require security depending on the loan amount and risk profile.
What Types of MSME Loans Are Available?
MSME loans include working capital loans, term loans, equipment loans, and government-subsidized loans under schemes like CGTMSE or PMEGP to support small enterprises.
What is the Maximum Loan Amount for Working Capital?
The maximum loan amount for working capital typically ranges from ₹10 lakhs to ₹5 crores, depending on the lender, business turnover, and repayment capacity.
Is Collateral Required for a Working Capital Loan?
Many working capital loans are unsecured for smaller amounts. Higher loan amounts may require collateral, depending on lender policies and borrower eligibility.
What is the Maximum Loan Amount for Machinery?
Machinery loans can go up to ₹1 crore or more, based on the equipment cost, business profile, and repayment ability. Some banks and NBFCs also offer flexible financing options.
What Are the Benefits of a Machinery Loan?
A machinery loan helps businesses upgrade equipment, improve productivity, and expand operations without draining working capital. It offers structured repayment options and tax benefits in some cases.
