An  unsecured business loan  is a short-term funding solution which does not require personal or business assets as security, but is rather based on the financial history and cash-flow of the business, and the credit worthiness of the business and its promoters. As the risk for the lender is higher than in any asset or collateral-backed loans, the Interest rate for an  unsecured business loan  is higher than the interest rate on  SME Loan  which is backed by a primary security (machine, equipment, stock, book debts), and additionally by either collateral security (real estate property) and personal guarantee of promoters & third parties, or guaranteed under a  Credit Guarantee Scheme . In addition to higher interest rates, the loan repayment tenure is also much shorter for an  unsecured business loan  as compared to an  SME Loan  because of the higher risk of default over a longer period of time. IS AN  UNSECURED BUSINESS LOAN  SAME AS  LOAN UNDER MUDRA OR CGTMSE ?