What is an Unsecured Loan?

A loan given without any collateral, based on income, turnover, and credit score.

Best For

• Short-term needs
• Emergency cash flow
• Service businesses
• Startups with clean records

Key Features

• Faster disbursement
• No asset mortgage
• Higher interest rate
• Shorter tenure

Eligibility Factors

• CIBIL score
• Bank transaction history
• GST turnover
• Profitability

Risks to Consider

• Higher EMI burden
• Impact on credit score if delayed
• Not suitable for long-term funding

CA’s Advisory Tip

Use unsecured loans only for short-term needs, not asset creation.