Business loan is an unsecured loan which can be used for various purposes like business expansion, purchasing plant and equipment, buying office space, paying off rent or salaries, hiring staff, debt consolidation, maintain inventory, enhancing stock, investment in infrastructure, purchasing raw materials, etc.
Business loan is provided to the applicant considering his/her financial history, repayment capability, credit score, etc. The interest rates offered by banks and NBFCs may differ from each other. In addition to this, the applicant needs to furnish a set of documents to process their loan application, which may vary depending on the bank and the nature of business.