If you meet the lender’s eligibility criteria, you can get a business loan without any mortgage or collateral. 

Many lenders offer business loans without any collateral or mortgage. You just have to meet their basic eligibility criteria. The most common requirements are: 

Eligible Entities

Self-employed individuals, Proprietors, Private Ltd. Co. and Partnership Firms (Manufacturing, Trading or Services)

Age Criteria

Min. 18 years and Max. 65 years

Age of the Business

Minimum 2 years, making a profit

Annual Turnover

Minimum Rs.25 lakhs

Credit Score

700 and above


Businesses want to be assured that they can repay the loan. If you can show them relevant documents to support this claim, they will lend you money. Here are some ways to get a business loan without any mortgage: 

  1. Opt for Business Line of Credit or Invoice Financing: These are bank credit lines that allow you an amount of credit with the bank based on your financial standing and the invoice receivables. The bank will give you a line of credit that can be used for immediate business needs. 
  2. Equipment financing: You don’t need to provide any collateral or security when you get an equipment loan. You can use this to buy machinery and equipment for the business. 
  3. Go for Government-backed schemes: There are umpteen government-backed schemes that give collateral-free loans to MSMEs and budding entrepreneurs. Some of them are PMMY Mudra Yojana, Credit Linked Capital Subsidy Scheme, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Prime Minister's Employment Generation Programme (PMEGP). You can go for them. 

Points to remember

Business loans are typically available for companies that have been in operation for at least two years and are profitable. While you are not required to have a mortgage or collateral, you must demonstrate the viability and competitiveness of your company in order to be eligible for the loan. As a result, be prepared to provide the necessary documentation to demonstrate your reputation and repayment capability to the lender.