What is Unsecured Business Loan? Check Interest Rates & Eligibility

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In the world of business financing, unsecured business loans have emerged as a versatile and accessible funding option. These loans provide a lifeline to entrepreneurs looking to secure capital without the need for collateral. In this comprehensive guide, we will explore the ins and outs of unsecured business loans, shedding light on eligibility and documents required, interest rates and charges, features and benefits of an unsecured business loan and how to apply for one. Whether you're a small business owner seeking growth capital or a startup founder in need of financial support, understanding unsecured business loans is crucial. So, let's dive in and unravel everything you need to know about securing the best-unsecured business loans.

Unsecured Business Loans in India

Now, coming to the unsecured loan definition, these loans provide financial support to entrepreneurs and businesses without collateral. These loans are approved based on your creditworthiness, financial history, and business performance.

Discover the world of hassle-free business loans right here at Kotak Mahindra Bank. Our online business loans in India are tailored for the MSME sector, catering to business owners and visionary entrepreneurs.

Whether you're looking to meet working capital needs, expand your business, or stock up on inventory, our unsecured business loans are designed to align perfectly with your requirements.

Unsecured Business Loan Features & Benefits

Check out the features and benefits of unsecured business loans from Kotak Mahindra Bank:

1. Quick Services: We believe in making your life easier. Applying for an unsecured business loan with us is simple.

2. Flexible Loan Repayment: Everyone's financial situation is unique. Our loans are designed to allow you to choose a repayment plan that suits your needs so you can manage your finances comfortably.

3. Quick Approval: No one likes waiting when fulfilling your financial goals. You can expect a swift approval process with us, bringing your dreams to reality faster than you'd imagine.

4. No Collateral: Are you worried about putting your assets on the line? Don't be. Our unsecured loans let you pursue your dreams without collateral, ensuring peace of mind.

5. Loans from Rs 3 lakh to Rs 1 Crore: Whether you're looking for a small boost or a substantial investment, we offer a wide range of loans from Rs 3 lakh to Rs 1 Crore to match your ambitions, big or small.

Unsecured Business Loan Eligibility & Documents Requirement

Eligibility Criteria: For a smooth process, business owners must meet eligibility criteria and submit required documents for unsecured Business Loans.
Age Eligibility: To qualify, applicants should fall within the age range of 25 to 65 years at the time of loan maturity.
Business Experience: A minimum of 3 years of business operation is required for applicants.
Minimum Annual Revenue: The applicant's business should achieve an annual turnover of at least Rs. 40 Lakh for 3 years.

Documents Required

Here are the required documents to secure an unsecured business loan:

Identity Proof

- PAN Card

- Driving License

- Passport

- Voter's ID

- Aadhaar Card

Address Proof

- Passport

- Driving License

- Voter's ID

- Aadhaar Card

- Utility Bill

- Bank Statement

- Bank Account Passbook (Updated and no more than 3 months old)

Ownership Proof

- Agreement Copy

- Electricity Bill

- Maintenance Bill with share certificate

- Municipal Tax Bill

- Share Certificate

Business Continuity Proof

- Shop and Establishment Certificate

- Tax Registrations (VAT/Service Tax/GST)

Firm Constitution

- Memorandum of Association (MOA)

- Partnership Deed

- GST Registration Certificate

Unsecured Business Loan Interest Rate & Charges

Every business needs enough capital for operations and growth. Business owners often turn to Business Loans for funding, with various providers available.

At Kotak Mahindra Bank, we simplify the process and offer competitive interest rates on unsecured Business Loans, regardless of business size. Our industry-leading term loan rates ensure you avoid high debt, making your business thrive.

Fee/Charge	Amount or Percentage
Processing Fee (Non-refundable)	Maximum 2% of the loan/facility amount (Plus Taxes as applicable)
Documentation Charges	Loan amount up to Rs 10 lakh: Rs 3,500/- (Plus Taxes as applicable), Loan amount above Rs 10 lakhs: Rs 6,000/- (Plus Taxes as applicable)
Cheque Dishonour Charges	Rs 750/- (Plus Taxes as applicable) per instance
Charges for Copy of any Document	Rs 500/- (Plus Taxes as applicable) per instance
Repayment Mode I Account Swap Charges	Rs 500/- (Plus Taxes as applicable) per instance
Charges for Duplicate NOC / No Dues Certificate	Rs 500/- (Plus Taxes as applicable) per instance
Prepayment Charges	Up to 4% foreclosure/closure charges of the outstanding (Plus taxes as applicable)
Annual Review / Renewal Charges (Overdraft Facility)	Up to 2% of renewal limit (Plus Taxes as applicable)
Over-line Rate / Penal Interest (Overdraft Facility)	Up to 3% p.m. (plus taxes as applicable). This would be charged on the amount over and above the sanctioned limit on a given day.
Non-utilisation Charges (Overdraft Facility)	Up to 2% of limits if utilisation of limits for the quarter is below 60%
Charges for Amortisation Schedule/Account Statement	Free once in a Financial Year. Thereafter, Rs 500/- (plus taxes as applicable) per instance
Substitute Interest (Penal Interest) (Term Loans)	Up to 3% p.m. (plus taxes as applicable) compounded monthly on the Amount Due but unpaid from the Date of the Amount falling Due till the Date of actual Payment
Collection Charges (in case of Default) (Term Loans)	Up to 3% (plus taxes as applicable) of Cheque/instrument Dishonour Charges plus Substitute Interest

Read Also: What is MSME Loan?

How to Apply for an Unsecured Business Loan?

Here’s how you can apply for an unsecured business loan from us:

1. Visit Our Website or Download the App: Visit any of your nearest branch or Business Loan section on www.kotak.com or download Kotak Mobile Banking app from App Store or Play Store.

2. Fill Out the Form: Fill out the form and provide essential details about your business and personal information. It includes KYC and business details.

3. Submit Your Application: Once you've completed the form accurately, hit the submit button. Your application will be sent securely to our team for review.

4. Our Team Will Connect with You: Expect a prompt response from our dedicated team. We will contact you to discuss the next steps and guide you through the loan approval process.

Applying for a business loan has never been easier. Visit our website or download our app today to take the first step toward securing the financial support your business needs.

Apply today with Kotak Mahindra Bank and experience the convenience of securing the best-unsecured business loans without collateral. Get access to generous unsecured loan limits in just 5 minutes. Say goodbye to lengthy processes and hello to instant financial support for your business aspirations.

Conclusion

This comprehensive guide has unveiled the world of the best-unsecured business loans, offering insights into their benefits, eligibility criteria, and application process. With no need for collateral, flexible terms, and quick approvals, these loans empower businesses to thrive and grow. Get ready to explore the possibilities of unsecured business loans for your entrepreneurial journey.