What it is
An unsecured business loan funds stock, equipment, expansion or day-to-day working capital. Lenders judge it on how long the business has been running, how money moves through its bank account, and its tax filings. Banks and NBFCs read the same business very differently, which is why matching matters here more than anywhere.
Who it suits
- Traders, manufacturers and service businesses with at least 2–3 years of history
- Businesses with regular GST filings and steady banking
- Owners who need funds faster than a secured loan allows
Which lenders fit
Typical appetite by lender type for a well-documented profile. Your own answers can change this — run a Match Check.
Possible
Private banks price well for strong scores and documented income, and move quickly.
Unlikely
Public sector banks often have the lowest rates, with stricter paperwork and slower turnaround.
Strong fit
NBFCs accept a wider range of profiles, including the self-employed, usually at a higher rate.
Strong fit
Small finance banks lend to thinner files and smaller towns, usually at a higher rate.
Possible
Fintech lenders decide quickly on digital data and suit smaller unsecured amounts.
Typical eligibility
Business
- Business running for at least 2–3 years
- Annual turnover as per the lender's minimum, often ₹25–40 lakh or more
- ITR and audited financials for the last 2 years
- GST returns filed regularly
- Credit score of the business owner usually 700 or above
Each lender sets its own criteria. These are common starting points, not guarantees.
Documents to keep ready
- PAN of the business and the owners
- GST registration and last 12 months' returns
- Last 12 months' bank statements of the main business account
- ITR with computation and financials for 2 years
- Business registration proof (partnership deed, incorporation certificate or Udyam registration)
You share documents only with your advisor or the lender, never on this website.
Indicative rates
| Lender type | Rate range | Processing fee | Max tenure | As of |
|---|---|---|---|---|
| Private banks sample | 12.00 – 18.00 % | 1.00–2.00 % | 5 yrs | 19 Sep 2026 |
| NBFCs sample | 14.00 – 22.00 % | 1.50–3.00 % | 5 yrs | 19 Sep 2026 |
| Small finance banks sample | 15.00 – 24.00 % | 2.00–3.00 % | 4 yrs | 19 Sep 2026 |
| Fintech lenders sample | 16.00 – 28.00 % | 2.00–4.00 % | 3 yrs | 19 Sep 2026 |
Questions
Do I need collateral?
Not for an unsecured business loan. For larger amounts or lower rates, a loan against property may suit you better.
Why does banking matter so much?
Lenders look at average balances, cheque bounces and how steadily money comes in. It tells them how easily an EMI will be paid.
How fast is disbursal?
With complete documents, NBFCs are often quicker than banks. Missing GST or ITR documents are the most common cause of delay.