Business Loan Without Collateral: Top Banks & NBFCs Offering Unsecured Loans

7 September 2025•6 minute read

Running a business is exciting, but it comes with financial challenges—especially when you need capital but don’t have assets to pledge. This is where a business loan without collateral comes in. Whether you’re a startup founder, a small business owner, or a freelancer growing your enterprise, unsecured business loans can help you scale without risking your property.

In this blog, we’ll break down how these loans work, who offers them, and what to consider before applying. We’ll also explore the top unsecured business loan providers in India, including both banks and NBFC business loans.

What Is a Business Loan Without Collateral?

A business loan without collateral (also called an unsecured business loan) is financing offered without requiring any assets such as land, property, gold, or inventory as security.

These loans are typically offered based on your:

Business income
Credit score
Banking history
Business vintage (years in operation)

Since lenders take on more risk with unsecured loans, the interest rates may be slightly higher than secured loans, and the loan amount may be lower.

Who Should Consider an Unsecured Business Loan?

A business loan without security is ideal for:

Startups without assets to pledge
MSMEs looking for working capital
Freelancers and consultants
Retailers or traders who need short-term loans
Service-based businesses with minimal fixed assets

If you’re wondering whether you qualify, here’s a quick checklist.

✅ You may be eligible if:

Your business has been operational for at least 1 year
Your annual turnover is ₹10 lakhs or more
You maintain a healthy credit score (usually 700+)
You can provide proof of income tax returns, bank statements, and GST filings

Benefits of Unsecured Business Loans

Choosing a business loan without collateral has several advantages:

✅ No risk of losing assets
✅ Quick disbursal (some within 48–72 hours)
✅ Minimal paperwork
✅ No need for guarantors
✅ Great for emergency business needs

Let’s now dive into the best unsecured loan providers in India.

🏦 Top Banks Offering Business Loans Without Collateral

These are some of the most trusted banks offering business loans without security in India:

1. HDFC Bank Business Loan

Loan Amount: ₹50,000 to ₹50 lakhs
Tenure: 12–48 months
Interest Rate: Starting from 11.90%
Processing Time: 3–5 days
Eligibility: Minimum turnover ₹40 lakhs, business vintage 3 years

2. ICICI Bank Business Loan

Loan Amount: ₹1 lakh to ₹40 lakhs
Tenure: Up to 60 months
Interest Rate: Competitive, varies by profile
Features: Pre-approved offers for ICICI customers, paperless processing

3. Axis Bank Business Loan

Loan Amount: ₹50,000 to ₹50 lakhs
Tenure: Up to 60 months
Interest Rate: Starting at 14%
Special Feature: Loans for professionals and MSMEs
Documents: Basic KYC, bank statements, and income documents

4. Kotak Mahindra Bank Business Loan

Loan Amount: Up to ₹75 lakhs
Interest Rate: Starting at 16%
Tenure: Up to 36 months
USP: Digital application and doorstep service

5. IDFC FIRST Bank Unsecured Business Loan

Loan Amount: ₹1 lakh to ₹50 lakhs
Features: Collateral-free, customized offers, and quick approval
Eligibility: Minimum 2 years in business, ITRs and bank statements required

🏢 Top NBFCs Offering Unsecured Business Loans

NBFCs (Non-Banking Financial Companies) are often more flexible than banks and faster in disbursing loans.

1. LendingKart

Loan Amount: ₹50,000 to ₹2 crores
Tenure: 6 to 36 months
USP: No collateral, minimal documentation, fast disbursal
Best For: Startups and small businesses

2. NeoGrowth Credit

Loan Amount: ₹1 lakh to ₹75 lakhs
Repayment: Daily/weekly/monthly options
Specialty: Ideal for retail stores and POS-based businesses

3. Indifi

Loan Amount: ₹50,000 to ₹50 lakhs
Special Feature: Industry-specific loans (travel, food, retail, etc.)
No collateral required; fast processing

4. FlexiLoans

Loan Amount: Up to ₹1 crore
Tenure: Up to 36 months
Highlights: Online application, paperless processing, no collateral
Good For: MSMEs and freelancers

5. Clix Capital

Loan Amount: ₹5 lakhs to ₹50 lakhs
Tenure: Up to 48 months
USP: Quick disbursement, fully digital, unsecured

📋 Documents Required for Unsecured Business Loans

Whether you apply through a bank or an NBFC, here are the typical documents you’ll need:

✅ KYC documents (Aadhaar, PAN, etc.)
✅ Business registration certificate
✅ Bank statements (last 6–12 months)
✅ ITR or audited financials (last 2 years)
✅ GST returns (if applicable)
✅ Proof of business address

🧠 Tips Before Applying for a Business Loan Without Collateral

Here are some smart tips to help you increase your chances of approval:

🔹 Maintain a Good Credit Score

A score of 700+ is considered ideal. Check your credit report and fix errors before applying.

🔹 Keep Financials Updated

Have clean, updated balance sheets, profit/loss statements, and bank statements.

🔹 Compare Multiple Lenders

Don’t settle for the first offer. Compare interest rates, fees, repayment flexibility, and customer reviews.

🔹 Avoid Overborrowing

Borrow what you need, not what you qualify for. Overborrowing can affect cash flow.

🏁 Final Thoughts

If you’re growing your business and need capital—but don’t have assets to pledge—a business loan without collateral is your go-to solution. With the rise of digital NBFCs and flexible banks, securing a loan has never been easier for MSMEs, freelancers, and startups.

Choose a lender that aligns with your business goals, offers transparent terms, and provides responsive support. Whether you’re scaling operations or launching a new product line, these unsecured loan providers can help you move forward—without risking your assets.

❓FAQs About Business Loans Without Collateral

1. Which bank is best for a business loan without collateral in India?

HDFC Bank, ICICI Bank, and Axis Bank are among the top banks offering unsecured business loans with quick disbursal and flexible terms.

2. What are the best NBFCs for unsecured business loans?

LendingKart, NeoGrowth, Indifi, and FlexiLoans are popular for easy application processes, fast funding, and minimal documentation.

3. Can I get an SME loan without security?

Yes, many banks and NBFCs offer SME loans without security, provided you meet income and credit criteria.

4. Are unsecured business loans safe for startups?

Absolutely. As long as the lender is RBI-regulated and the terms are clear, unsecured loans are a safe way for startups to get working capital.

5. What is the maximum amount I can get without collateral?

Banks usually offer up to ₹50 lakhs, while some NBFCs like LendingKart or FlexiLoans may go up to ₹1–2 crores, depending on your business profile.

6. Do I need to show profits to get a business loan without collateral?

Not always. Some NBFCs approve loans based on banking activity and GST filings even if you’re not yet profitable.

7. Is it better to go with NBFCs or banks for unsecured loans?

NBFCs are faster and more flexible, but banks may offer lower interest rates. Choose based on your urgency, credit score, and comfort with digital lending.

✅ Key Takeaway

A business loan without collateral is a practical and risk-free way to fund your growth. Whether you go with a bank or NBFC, make sure to review the terms, check your eligibility, and borrow smart.