Unsecured Business Loans – Smart Capital, Made Simple.
Access the capital you need to scale new heights with an unsecured business loan. Get up to Rs 50 lakh funding via a simple, paperless process. Flexible tenure up to 48 months.
Why Choose Hero FinCorp for an Unsecured Business Loan?
Hero FinCorp is an RBI-approved leading Indian NBFC, backed by Hero Group. As a top-rated lending institution, Hero FinCorp offers unsecured loans for individual proprietors and business entities. The loans are an ideal financing option for businesses that want to scale their operations or manage cash flow without the constraints of pledging collateral.
Here are the key reasons that make Hero FinCorp stand out for unsecured loans:
Collateral-Free Funding
Avail funding for business operations without collateral. You need to pledge no property, assets, or fixed deposits, making loan approval faster due to the absence of collateral-document checks.
Loan Up to Rs 50 Lakh
Boost your working capital, asset purchase, or expansion with a business loan of up to Rs 50 lakh, subject to your eligibility and need.
Fastest TAT in the Industry
Hero FinCorp commits to loan processing within 48 working hours. It is among the fastest turnaround times for SME financing.
Flexible Repayment Tenure
Repay the loan at your pace with flexible tenures of up to 48 months. The repayment tenure is structured to suit business cash-flow cycles.
Minimal, Paper-Light Documentation
You need minimal documentation for loan processing, followed by trouble-free disbursal. It makes the loan ideal for entities and proprietors needing funds without delay.
Flexible Loan Formats
Select Flexi, Term, or Hybrid formats designed to align with different repayment preferences, ensuring the structure fits your business needs.
Calculate Your EMI
Unsecured Business Loan Application Process.
Applying for an unsecured business loan at Hero FinCorp is fast and simple. Start by checking your eligibility and then proceed.
The steps below outline how to apply for an unsecured business loan:
Ensure your SME has at least 3 years of operations.
Apply online, via email, or phone enquiry.
Share KYC details, audited financials, GST returns, and bank statements.
Select your loan amount and tenure based on your requirements.
Review the terms and conditions and then accept them.
Unsecured Business Loan EMI – Tenure-Wise Breakdown.
The EMI on your unsecured business loan depends on the tenure and the interest rate. Knowing your EMI is essential for planning your repayment. It enables you to keep the loan manageable.
The table below shows an indicative EMI for a Rs 10,00,000 unsecured business loan at 14% p.a. across tenures.
| Loan Amount (Rs) | Tenure (Months) | Interest Rate (p.a.) | Monthly EMI (Rs) | Total Interest (Rs) | Total Amount Payable (Rs) |
|---|---|---|---|---|---|
| 10,00,000 | 12 | 14% | 89,787 | 77,444 | 10,77,444 |
| 10,00,000 | 24 | 14% | 48,013 | 1,52,312 | 11,52,312 |
| 10,00,000 | 36 | 14% | 34,178 | 2,30,408 | 12,30,408 |
| 10,00,000 | 48 | 14% | 27,326 | 3,11,648 | 13,11,648 |
Disclaimer: The EMI figures above are approximate and calculated using the standard reducing-balance method at the lowest indicative rate. The actual rate (14%–30% p.a.) and EMI depend on your business profile. Use the Business Loan EMI Calculator on the website for a precise estimate.
Find Out
If You Are Eligible.
To qualify for an unsecured business loan, you must meet a few basic requirements. At Hero FinCorp, the eligibility conditions for loan applications are straightforward, enabling easy accessibility to funds.
The eligibility criteria for an unsecured business loan at Hero FinCorp are as follows:
| Parameter | Requirement |
|---|---|
| Age | You must be between 25 to 65 years of age |
| Citizenship | You must be an Indian citizen |
| Business Vintage | At least 3 years of experience in the existing business |
| Eligible Entities | Sole Proprietorship, Partnership, Private Limited, Public Limited, Trust/Society, and HUF |
| Loan Amount | Rs 5,00,000 to Rs 50,00,000, based on profile |
| Credit History | Positive financial and credit track record |
Interest Rate and Charges for Unsecured Business Loans.
At Hero FinCorp, interest rates on unsecured business loans start at 14% p.a. Knowing about the interest rates and charges involved enables you to calculate the total cost of your loan. The competitive rates on this loan enable you to avoid the burden of high debt.
Here is an overview of the rates and charges applicable to an unsecured business loan:
| Fee/Charge | Details |
|---|---|
| Interest Rate | 14% to 30% per annum |
| Loan Processing Charges | As described in the Sanction Letter cum KFS |
| Prepayment / Foreclosure | Not allowed within the 12-month lock-in period; after lock-in, 5% + applicable taxes on principal outstanding |
| Foreclosure Within Lock-in | At HFCL’s sole discretion, 8% + applicable taxes on principal outstanding |
| Payment Default Charges | 3% per month on the overdue amount |
| Repayment Bounce Penalty | Rs 700 per bounce |
Note: Your final rate depends on your CIBIL, monthly income, lender-borrower relationship, and loan tenure. A strong credit profile helps you negotiate a lower rate.
Types of Unsecured Business Loan.
You can choose from two different types of unsecured business loans. Each loan is designed to meet specific business needs. Choosing the right loan can help you achieve your business aspirations.
Here are the two types of unsecured business loans offered by Hero FinCorp:
Line of Credit
It is a flexible financial solution that allows you to draw and repay funds as needed. You can draw the required amount multiple times. The best part is that you pay interest only on the amount used. This loan is ideal for periodic business payments.
Term Loan
With this loan, you get a lump sum upfront. It is a single-time capital facility that you can use for specific purposes, such as purchasing land, building, or upgrading infrastructure. The loan is offered based on your creditworthiness and has a short tenure.
Uses of an Unsecured Business Loan.
An unsecured business loan is your key to accessing funds for your business operations without dipping into your savings. You can use the loan to meet various needs.
Here are some common uses:
- Working Capital
- Business Expansion
- Machinery & Equipment
- Inventory Stock-Up
- Technology Upgrade
- Office Renovation
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Frequently Asked Questions.
An unsecured business loan enables you to access funds without pledging collateral. Hero FinCorp approves the business loan based on your business's creditworthiness, cash flow, and overall financial health. .
The unsecured business loan amount you can avail of depends on your need, your CIBIL, and the assessment of your business. At Hero FinCorp, you can avail up to Rs 50 lakh as a business loan without collateral.
An unsecured business loan is open to individual owners and various business entities. At Hero FinCorp, eligible entities include sole proprietorships, partnerships, private limited companies, public limited companies, trusts/societies, and HUFs.
Unsecured business loan tenures aren’t the same across all lenders. Hero Fincorp offers a flexible loan tenure of 12 to 48 months, enabling you to choose a comfortable repayment duration.
There are multiple methods available for repaying an unsecured business loan. A few common methods include NACH, PDC, net banking, UPI autopay, and direct debit.
The approval time for unsecured business loans varies across lenders. Hero FinCorp offers a fast approval time of 1 to 2 working days, subject to all documentation being in order.
The risks associated with defaulting on an unsecured business loan are many. From hurting your credit score to potential lawsuits, you may have to face various consequences.
An unsecured business loan enables you to access funds without pledging collateral. For a secured business loan, you need to pledge your assets, property, or equipment as collateral. If you default, the lender can seize the collateral you pledged.