Business loan is offered by banks and NBFCs to fulfil the financial requirements of self-employed customers and enterprises. business owners, entrepreneurs, retailers, traders, manufacturers, self-employed professionals like CAs/Doctors, and several other business entities can avail this credit facility.

Business loans are of two types, such as secured loans and unsecured loans. Secured loans are types of loans that require collateral/security, that borrowers need to deposit with the lender to avail funds. However, in the case of unsecured loans, there is no need to submit any type of collateral/security with the Bank, NBFC.

Banks/NBFCs offer both secured and unsecured business loans that include Term Loans (Short-term/Intermediate-term/Long-term), Working Capital Loans, Cash Credit, Overdraft, Letter of Credit, Bill/Invoice Discounting, Equipment Finance, Machinery Loans, Point-of-Sale (POS) Loans/Merchant Cash Advance, Fleet Finance, Loans under Bank Guarantee (BG), Loan under Govt. schemes, etc.