As the name Suggest, Banks/NBFCs offer Business Loan without any collateral for the purpose of expansion/enhancement of your existing business.
As a Bank/NBFC doesn’t take any collateral, the Rate of Interest in case of Business Loan is generally higher than any other Loan. The Rate of Interest at present varies from 15% to 25% depending on the profile of the customer. However it has advantage of without any collateral & quick disbursement.
Business Loan Eligibility depends on the following conditions :-
1. Your total annual income
2. Your existing liabilities.
3. Your total work experience and experience in your current Business.
4. Financial documents.
* Minimum Age at the time of Application should be 21 years
Banks takes into consideration various factors such as Annual Turnover/Receipt/Commission, Gross Profit, Net Profit, Average Bank Balance, Present EMI and Various other factors .