What are Unsecured Business Loans?

Finway Fsc03 Jun, 2023News

Unsecured business loans do not have collateral security tied to them. In case the customer fails to repay the loan, the bank or lender cannot recover the amount by keeping any of their priced possession (assets) as pledge security. The customer has to repay an unsecured loan through EMIs ? Equated Monthly Instalments. Such loans are usually provided to MSME ? micro, small and medium-sized enterprises for various reasons like expansion, raising capital, diversification, upgradation, and more.