There are many small firms, start-ups, and MSMEs in India that are not provided with the correct funding assistance. Business loans are a big relief, especially when you are starting a business or expanding it. Not everyone, though, owns property or assets to offer as securities. That is where unsecured business loans come in. In this blog, we will be learning about what unsecured business loans are, their pros and cons, and how to be eligible for it. If you are from Noida, Delhi, Gurgaon, or any part of the NCR region, this guide is for you.
What is an Unsecured Business Loan?
An unsecured business loan is a loan that may be obtained without the presentation of any collateral. That is, you don’t have to mortgage your shop, your house, or any other property in order to get the money. It is a collateral-free business loan that may be obtained by small businesses, startup companies, or self-employed individuals.
Such loans are typically offered by banks, NBFCs, and even fintech players like Credmart, who understand the needs of new-gen Indian business leaders.
Benefits of Unsecured Business Loans
No Collateral Required: You won’t be required to risk your home or your personal belongings.
Quick Approval: The lenders offer quick approval of business loans especially in Delhi, Gurgaon, and Noida.
Flexible Repayment: You have EMI facilities to choose from based on your cash flows.
Ideal for Startups: It’s ideal for startup business loans in Noida, South Delhi, or Gurgaon who have little to their name.
Online Process: Platforms such as Credmart offer completely online application and approval processes.
Risks of Unsecured Business Loans
Higher Interest Rates: Since no collateral is provided, marginally higher interest rates on business loans are levied.
Shorter Tenure: Unsecured loans have shorter tenures in general.
Strict Eligibility: Lenders look for good business performance and credit.
Limited Amounts: Loan amount is typically lower compared to secured business loans.
Who Can Apply for an Unsecured Business Loan?
If you are:
Noida or South Delhi startup in need of working capital
Small business owner in Delhi NCR to expand
Self-employed individual without collateral
MSME seeking fast funding avenues
…then this type of loan might be the one for you.
Delhi NCR (and India) Business Loan Eligibility
To qualify, these are some fundamentals that lenders consider:
Between 21 and 60 years
Minimum turnover (adjusts with lender)
Business firm operating for a minimum of 6 months to 1 year
ITR returns of previous 1-2 years
Good CIBIL (above 700 is preferable)
You can easily check your business loan eligibility on Credmart.
Documents Needed for a Business Loan
PAN and Aadhaar card
Business registration proof
Bank statements (current 6-12 months)
GST registration (wherever applicable)
Income Tax Returns
Government Business Loan Schemes of India
If you require the support of the government, then there are some great government business loan schemes like:
Mudra Loan (under Pradhan Mantri Mudra Yojana): For new businesses and small businesses.
CGTMSE Scheme: Collateral-free finance to MSMEs.
Stand-Up India: Especially for SC/ST and women entrepreneurs.
SIDBI Loans: SIDBI direct loans or through banks/NBFCs.
Overdraft Business Loan for MSMEs
This is another good option. You are given a credit limit based on the existing account balance or turnover for an overdraft business loan.
You only pay interest on the amount utilized.
This is greatly helpful to MSME businesses that have cash deficits during seasons or sudden cost increases.
Where to Submit? Best Banks & Fintechs
There are many banks and NBFCs offering these loans, but the question is: Who are the best banks for business loans in Noida, Gurgaon or South Delhi?
Some appropriate choices are:
HDFC Bank
ICICI Bank
Kotak Mahindra Bank
Axis Bank
SBI (for government schemes)
Credmart (for fast online approval and help)
How Credmart Assists
We make lending easy for companies in Delhi NCR. Whether it is a small industry business loan, an MSME loan, or a startup business loan, we have:
Instant eligibility verification
Document support
Multiple loan products from top lenders
Open interest rates
Professional advice for your business
Final Thoughts
An unsecured business loan can be a business lifesaver. Go small, go large — don’t let the fact that you don’t have collateral get in your way.
With sites such as Credmart, availing a collateral-free business loan in Delhi NCR is now a breeze. Be well aware of the pros and cons, and always go through the small print before signing.
Struggling to choose the right loan for your business? Take advantage of a complimentary consultation with Credmart today and we will help you choose the most suitable loan to fuel your dream!
