What are the advantages of unsecured business loans?

What are the advantages of unsecured business loans?

Updated: 20 September 2023

Published: 8 February 2023

What is unsecured business loan? 

An unsecured business loan is a type of loan that is offered by various banks and NBFCs collateral free to the borrower. An unsecured business loans are considered to be a wiser decision for running, expanding and starting a business. Unsecured loans are often called as the signature loans, these loans are granted to the applicant without any collateral with minimal documentation. Collateral free business loan is a smarter choice when it comes to the successful running of a business when you have no collateral. The interest rate of unsecured business loans is little higher than that of secured business loans. The applicant should have a CIBIL score more than 700 for easy approval of business loans. Boost your CIBIL score and increase your chances of getting a loan.

A loan is not a burden rather a planned decision with us. My Mudra unsecured loan for business is available at lowest interest rate for all the business owners with minimal documentation. Growing business without making money a hurdle is a significant factor these days for consistent growth. Business loan without collateral is offered at 15% rate of interest from My Mudra. 

 Benefits for taking unsecured business loans

·     Easy Apply: The application process for an unsecured business loan is quite easy. Apply online on www.mymudra.com and fill basic details required for filling up the application form.

·     Minimal Documentation: The applicant should submit KYC documents, company financial details, and registration details to apply for the unsecured business loan.

· No Collateral: Unsecured Business Loan is collateral free and hence an applicant does not need any security to file an application for the loan.

·    Shorter tenure and flexible repayment: The tenure period of an unsecured business loan is a bit shorter as compared to other loans. The applicant has the  flexible repayment options available for the loan.

·    Fast Amount Disbursal: Enjoy quick disbursal of the loan amount within a day.

How to apply for Unsecured Business Loan? 

Documents required for Unsecured Business Loan 

The unsecured loan for business is granted by the banks on minimal documentation. This is an additional benefit to the applicant who can apply for the loan with the documents that are easily available and accessible. Mentioned below are the list of documents that are required in the process of applying and approval of unsecured business loan. 

·    PAN Card – For Company/Firm/Individual

Identity proof required for business loan. 

·     Aadhaar Card

·    Passport.

· Voter's ID Card

·    PAN Card

·    Driving License

Attach the copy of following documents for address proof:

·     Aadhaar Card

·    Passport.

· Voter's ID Card

·    Driving License

Additonal documents required for unsecured business loan

·     Bank statement of the previous 6 months

·     Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited

· Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)

·    Other Mandatory Documents [Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)]

Interest rate for Unsecured Business Loan

The unsecured business loan interest rate and other charges are mentioned in the table below. My Mudra is not taking any hidden charges from the applicant for a business loan. Be an aware person and apply for the business loan smartly with My Mudra.


Interest Rate and Charges 

Unsecured Business Loan Interest rate 


Business Loan Processing Fee 




How to get Unsecured Business Loan? 

Applying for business loan is a cakewalk with My Mudra. Apply for the loan in just three easy steps and enjoy quick disbursal within a day. Mentioned below are the three step for applying unsecured loan. 

·      Apply with a click at www.mymudra.com.

·     Get your documentation done within a day.

· Quick disbursal of loan amount in your account within a day. 


My Mudra has became a one stop solution for all the financial needs. The above article will change your perspective of unsecured business loans by focussing on the advantages of unsecured business loans. Apply for My Mudra Business Loans and never let money become a hurdle in the success of your business. Get your business loan approved and disbursed within a day. 


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