Introduction
Getting a business loan is often difficult, especially for small businesses or startups that don’t have assets to pledge. The good news is — many Indian banks and NBFCs now offer business loans without collateral to help entrepreneurs grow their ventures easily.
In this blog, we’ll explore what unsecured business loans are, their benefits, eligibility, and the best lenders in India offering collateral-free loans in 2025.
What is a Business Loan Without Collateral?
A business loan without collateral (also called an unsecured business loan) is a loan that doesn’t require you to pledge any property or asset to the bank. These loans are approved based on your:
- Business performance
- Credit score
- Income tax returns
- Bank statements
- Business continuity
They are best for small businesses, startups, traders, and professionals like doctors, CA, consultants, etc.
Benefits of Collateral-Free Business Loans
No Asset Required
You don’t need to mortgage property, gold, or any fixed asset.
Faster Approval
These loans are usually processed quickly since there’s no asset verification.
Flexible Repayment
Repayment terms range from 12 to 60 months, depending on your business income.
Competitive Interest Rates
With good credit and income proof, rates start as low as 11% per annum.
Best Banks & NBFCs Offering Business Loan Without Collateral (2025)
1. SBI SME Smart Score Loan
- Loan Amount: Up to ₹50 lakh
- Interest Rate: Starts from 10.30%
- Tenure: Up to 5 years
- Eligibility: Based on credit and financial score
Best for: Retailers, traders & small businesses
2. HDFC Bank Business Growth Loan
- Loan Amount: ₹50,000 to ₹50 lakh
- Interest Rate: Starts from 11.90%
- Tenure: Up to 4 years
- Processing Time: 48 hours
Best for: Fast approvals & digital business customers
3. Axis Bank Unsecured Business Loan
- Loan Amount: ₹50,000 to ₹40 lakh
- Interest Rate: From 12% to 18%
- Tenure: Up to 5 years
Best for: MSMEs with stable cash flow
4. Bajaj Finserv Business Loan
- Loan Amount: Up to ₹75 lakh
- Interest Rate: Starts from 11%
- Special Feature: Flexi loan option
Best for: High loan amount without security
5. Lendingkart (Fintech NBFC)
- Loan Amount: ₹50,000 to ₹2 crore
- Interest Rate: From 12% p.a.
- Tenure: Up to 36 months
- Processing: 100% online
Best for: Startups, small traders, online sellers
Eligibility Criteria
To qualify for an unsecured business loan, you usually need:
- Minimum 2–3 years of business vintage
- Annual turnover of ₹10–15 lakh or more
- Good CIBIL score (above 700 preferred)
- Filed IT returns for at least 1–2 years
- Valid business proof (GST, license, UDYAM, etc.)
Documents Required
- PAN & Aadhaar card of owner
- Business registration proof
- Bank statements (last 6–12 months)
- ITR of last 1–2 years
- GST returns (if applicable)
- Address proof of business and applicant
Tips to Get Approved Faster
- Keep your credit score above 700+
- File income tax returns regularly
- Maintain clean bank transactions
- Apply with all documents upfront
- Choose the right loan amount as per your income
Conclusion
A business loan without collateral is an ideal solution for entrepreneurs who want fast, flexible funding without risking personal or business assets. With many banks and NBFCs offering competitive unsecured loans, you can now grow your business with peace of mind.
Always compare interest rates, fees, and features before applying. Use loan eligibility calculators to know your chances and repay on time to build a strong credit history.