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What is an Unsecured Business Loan? The growth and sustainability of a business depends on the continuous inflow of funds. The funds might be required to expand the business or purchasing equipment. The funds can be borrowed in the form of a loan from banks and other financial institutions. Business Loans are typically unsecured in nature which means no collateral or security is required to borrow a loan. Business Loan is a debt provided to the company or the self-employed professionals or business owners that are to be repaid along with the principal amount. The rate of interest is usually pre-determined by the lending institutions. A Business Loan in India is offered at competitive interest rates, with a low processing fee, and without any security or collateral. Several leading banks and NBFCs including HDFC Bank, ICICI Bank, Capital First, Citibank, Fullerton India, Tata Capital, and so forth are offering business loans. Types of Business LoansSome types of Business Loans are explained below:Term Loans: Term Loans could be used for business expansion or capital infusion requirement of an organization. Generally, a term loan is the loan offered for the acquisition of long-term fixed assets including land or building, machinery, and other business needs. The interest rate can be either fixed or floating and are usually have a fixed repayment schedule.Special Business Loan Scheme for Women Entrepreneurs: Today banks are offering attractive business loan scheme for women entrepreneurs at low rates of interest. However, women entrepreneurs who have business ownership of less than 50% are not eligible for special loan schemes.Working Capital Loans: These types of loans are offered to meet the daily operating expenses of the business. These loans can be further classified as secured and unsecured loans.

What is a Personal Loan? Personal Loan is an unsecured Finance offered by a Bank / Financial Institution based on the credibility and re-payment capacity of the Borrower.This funds generally used for paying off debts, Unexpected medical expenses, Going on Vacations, Home improvement, Buying Appliances and latest GadgetsAs it is an un-secured loan (No Collateral), the rate of interest is little higher and Tenure is shorter than secured loanPersonal Loan Eligibility Factors and Key Documents: A Personal Loan is offered based on certain factors that determine the eligibility of the borrower. Some of these are enumerated below.

A Home Loan is a Secured Finance Provided by a Bank or a Financial Institution to enable its Customer to Purchase, Construct or improve their Home, One can also avail a housing loan to buy a plot of land and construct on it. Home Loans are also issued to extend/ repair/ renovate/ alter a new or second-hand property. Bank used to provide up to 90% of the Cost of the property depending upon the eligibility and are repaid using Equated Monthly Installments (EMIs) spread over a fixed tenure. The EMI is calculated on a reducing balance basis. A reducing balance loan means that in the initial days of the loan, the interest component of the EMI is high. But gradually, as you keep on paying more EMIs, the interest component of the EMI goes down and the principal component increases towards the end of the tenure. Benefits of availing a Home Loan An accomplishment Every individual dreams of owning a house in their name. A home loan allows you to accomplish this feat and realize your dreams. This is one of the biggest financial investments you make in your lifetime and can therefore be considered an accomplishment. # Avail Govt. Subsidy Up to 2.67 Lakhs under PM AWAS Yojana# Capital appreciation Land is an appreciating asset in most cases. Construction costs have also increased over the years. As rents get more expensive with inflation, investing in your own house can shield you from inflation. # Benefits in interest rate In the 90s, banks used to charge up to 18% interest on loans. Today, you are able to get a home loan at 8.30% annually. The decrease in the interest rates coupled with capital appreciation makes it a dual benefit plan.