Who can get an unsecured business loan?
- Proprietors, partnerships, LLPs and private limited companies
- Usually 2 or more years in business
- Regular ITR and GST filings, and healthy bank statements
- A good credit score for the business and its owners
Government-backed schemes
| Scheme | What it offers |
|---|---|
| CGTMSE | Credit guarantee that lets banks lend to micro and small enterprises without collateral, up to ₹5 crore |
| PM Mudra – Shishu | Loans up to ₹50,000 for new and very small businesses |
| PM Mudra – Kishore | ₹50,000 to ₹5 lakh for growing businesses |
| PM Mudra – Tarun | ₹5 lakh to ₹10 lakh |
| PM Mudra – Tarun Plus | ₹10 lakh to ₹20 lakh for borrowers who have repaid a Tarun loan |
Documents you will need
- KYC of the business and its owners (PAN, Aadhaar, address proof)
- Business registration: GST, Udyam, partnership deed or MOA/AOA
- ITR for 2 years and GST returns
- 12 months of business bank statements
- Audited balance sheet and P&L (for companies)
Tips to get approved faster
- File ITR and GST on time, every time
- Route business income through one current account
- Keep your personal and business credit scores healthy
- Borrow for a clear purpose and show how it will be repaid
Frequently asked questions
Mudra loans are designed for new and small businesses. Most other unsecured loans need about 2 years of operating history.