Not always. Many banks and NBFCs offer unsecured business loans up to ₹50 lakh–₹75 lakh without collateral. For larger loan amounts, lenders may require collateral such as property, fixed deposits, or other assets as security.
Not always. Many banks and NBFCs offer unsecured business loans up to ₹50 lakh–₹75 lakh without collateral. For larger loan amounts, lenders may require collateral such as property, fixed deposits, or other assets as security.
MUDRA (Micro Units Development and Refinance Agency) offers loans up to ₹10 lakh under three categories: Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh). These loans are available through banks and NBFCs for small and micro enterprises without collateral.
Self-employed individuals, sole proprietors, partnership firms, LLPs, private limited companies, and MSMEs with a minimum business vintage of 1–3 years are eligible. A good credit score (700+), stable revenue, and proper documentation improve approval chances.
Typical documents include KYC (Aadhaar, PAN), business registration proof (GST certificate, Udyam registration), bank statements for 6–12 months, income tax returns for 2–3 years, profit & loss statement, balance sheet, and business plan (for new ventures).