Poonawalla Fincorp, Bajaj Finance, Tata Capital, Lendingkart, and InCred Finance are the 5 NBFCs offering collateral-free MSME loans under Rs. 50 lakh in India in 2026. Poonawalla Fincorp is best for an Instant Business Loan with a fully digital process, Tata Capital for the lowest starting interest rates, and Bajaj Finance for the longest repayment tenures. Lendingkart is best for the fastest disbursal to younger businesses, and InCred for digital-first enterprises.
The right lender for you depends on your credit score, business vintage, and how fast you need the funds.
Quick Comparison of NBFC Business Loan Interest Rates and Terms
(Note that final loan amounts, rates, and tenures depend on your credit profile, business financials, and the lender’s assessment at the time of application. Figures mentioned are subject to change.)
1. Poonawalla Fincorp
Poonawalla Fincorp offers an Instant Business Loan of up to Rs. 50 lakh through a collateral-free and fully digital application process. With minimal documentation, no hidden charges, and quick disbursal, it can help businesses meet immediate working capital or expansion needs. For larger funding requirements, Poonawalla Fincorp also offers business loans above Rs. 50 lakh and up to Rs. 1 crore, subject to eligibility and applicable terms.
–Loan amount: Up to Rs. 50 lakh
–Interest rate: Starting at 15% p.a.
–Tenure: Up to 36 months
–Eligibility: Self-employed individuals, sole proprietorships, partnership firms, and private limited companies with a stable business track record
Standout feature: An Instant Business Loan from Poonawalla Fincorp can support working capital, equipment purchases, business expansion, marketing, and unexpected expenses. It may also help consolidate existing debts into a more manageable repayment plan.
Best suited for: Business owners who want an Instant Business Loan with a transparent fee structure and a fast, paperless process for amounts in the Rs. 1 lakh to Rs. 50 lakh range.
2. Bajaj Finance
Bajaj Finance offers collateral-free business loans that comfortably cover the under Rs. 50 lakh segment, with the longest repayment window on this list. Its overall unsecured limit extends beyond this range, so borrowing up to Rs. 50 lakh sits well within its lending comfort zone.
–Loan amount: Up to Rs. 50 lakh in this segment
–Interest rate: Starting at 14% p.a.
–Tenure: 12 to 96 months
–Eligibility: Self-employed professionals and non-professionals, proprietorships, partnerships, and private limited companies; a CIBIL score of 650 or higher is generally expected
Standout feature: The Flexi Term Loan and Flexi Hybrid variants let you withdraw funds as needed from a sanctioned limit and pay interest only on the amount used, which can lower effective EMIs for businesses with uneven cash flow.
Best suited for: MSMEs that want a longer repayment runway or a flexible drawdown facility rather than a lump sum term loan.
3. Tata Capital
Tata Capital offers unsecured business loans across the under Rs. 50 lakh range with starting rates that are among the lowest in the NBFC segment for well-qualified borrowers. Its collateral-free limit extends higher, so loans in this bracket face no ceiling-related constraints.
–Loan amount: Rs. 40,000 to Rs. 50 lakh in this segment
–Interest rate: Starting at 12% p.a.
–Tenure: 12 to 60 months
–Eligibility: Applicants aged 21 to 65, a minimum CIBIL score of around 675, and a business with at least 2 to 3 years of stable, profitable operations
Standout feature: Structured EMI plans that can be aligned with your business cash flow, along with fixed EMI options for predictable repayment. Approval and disbursal typically happen within 24 to 72 hours.
Best suited for: Established businesses with healthy financials and good credit scores that can qualify for the lower end of the rate band.
4. Lendingkart
Lendingkart is an RBI-registered NBFC focused entirely on MSME lending, with a fully online process built around speed and minimal eligibility barriers.
–Loan amount: Up to Rs. 50 lakh
–Interest rate: Starting at 13.5% p.a., determined through automated credit assessment
–Tenure: 6 to 36 months
–Eligibility: Businesses operational for at least 12 months with consistent revenue; working capital loans may be available with as little as 3 months of operations
Standout feature: Loan approval and disbursal within about 3 working days, with repayment flexibility that includes both monthly and bi-weekly instalment options. There is no manual intervention in rate setting, which the company says keeps pricing fair to the borrower’s repayment capacity.
Best suited for: Small businesses, retailers, and first-time borrowers who may not meet the stricter vintage and turnover requirements of larger NBFCs and need funds quickly.
5. InCred Finance
InCred Finance is a technology and analytics-driven NBFC that offers both short-term working capital and term loans to small and medium enterprises, with loan sizes starting from Rs. 1 lakh and fully covering the under Rs. 50 lakh segment.
–Loan amount: Rs. 1 lakh to Rs. 50 lakh in this segment
–Interest rate: Varies by borrower profile and product
–Tenure: Up to 36 months for unsecured term loans
– Eligibility: Registered Indian businesses, typically at least 6 to 12 months old, assessed on turnover, cash flow, and credit score
Standout feature: Data science-led underwriting with instant sanction and no mandatory branch visits, plus specialised MSME products like embedded financing for businesses operating within digital ecosystems.
Best suited for: New-age businesses, e-commerce sellers, and digitally native MSMEs whose financial data tells a stronger story than traditional paperwork.
Which NBFC Should You Pick for Business Loans in India?
- For a fast digital loan: Choose Poonawalla Fincorp for quick approval, a fully digital process, and no hidden charges on loans up to Rs. 50 lakh.
- For a longer repayment tenure: Bajaj Finance offers tenures of up to 96 months and Flexi withdrawal options.
- For competitive interest rates: Tata Capital offers rates starting at 12% p.a. for borrowers with strong financials and a good CIBIL score.
- For a young business or urgent funding: Lendingkart accepts businesses with a minimum 12-month vintage and offers disbursal within three days.
- For a digital-first business: InCred’s analytics-based underwriting may help businesses that lack extensive traditional documentation.
Conclusion
Leading business loan NBFCs in India offer collateral-free funding of up to Rs. 50 lakh for eligible MSMEs. Poonawalla Fincorp focuses on quick, digital processing, Tata Capital offers competitive starting rates, Bajaj Finance provides flexible tenures, Lendingkart serves younger businesses, and InCred supports digital-first enterprises. Before applying, compare interest rates, processing fees, repayment tenure, and prepayment charges.
Frequently Asked Questions
Can I get a business loan without collateral in India?
Yes. Several NBFCs, including Poonawalla Fincorp, Bajaj Finance, Tata Capital, Lendingkart, and InCred, offer unsecured business loans where no asset, security deposit, or guarantor is required. Approval is based on your credit score, business turnover, cash flow, and repayment capacity.
What is the maximum collateral-free MSME loan I can get from an NBFC?
Leading NBFCs like Poonawalla Fincorp, Bajaj Finance, Tata Capital, Lendingkart, and InCred all offer unsecured business loans of up to Rs. 50 lakh, with some extending higher limits for eligible borrowers.
How long does it take to get an unsecured business loan from an NBFC?
Digital-first NBFCs like Lendingkart and Poonawalla Fincorp can approve and disburse loans within 1 to 3 working days if your documents are in order. Larger ticket sizes may take slightly longer due to additional verification.
