Business Loan is a loan given for business purposes only. Business loan is of two types, secured and unsecured. Today we will talk about unsecured business loans. Unsecured business loans are given to businesses without any security or charge on their assets. These loans are generally given for a period of 12 to 36 months and paid back with Equated monthly installments (EMIs) at a certain rate of interest. Unsecured business loans are given by many Banks and NBFCs.
The documents generally required to process a business loan include:
KYC documents of the business
KYC documents of the Proprietor / Partners / Directors
Financial & Bank Account Statements
Statutory & Tax Returns applicable to your Business
Application form
Unsecured loans are sought after by businesses whose assets have already been pledged and are in need of more funds.
Business loans are a great way to bridge your financial deficit and help you grow in business.