Can I get an SME loan if I don’t own any property?

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One of the most common questions we get asked by our SME customers is, “I don’t own property. Can I still get a business loan?” The answer is “yes”! You can get an SME loan even if you don’t own property!

Below are your loan options if you down own property.

Am I eligible for an SME loan even if I don’t own any property?

Yes, you can get an SME loan even if you don’t own any property. Lenders offer many different types and sizes of loan products, which have unique collateral requirements.

Most SME lenders also offer a type of business loan called Unsecured Business Loans. To get an unsecured business loan from a lender, you don’t need to put up any collateral, but the loan amount you will get will be lower than what you could have gotten if you had collateral to offer the lender.

Learn about Unsecured Business Loans.

What types of collateral can I use to get an SME loan?

As you may have already guessed, one of the best collaterals you can provide a lender in exchange for an SME loan is residential or commercial property you own.

If you don’t own property and still require an SME loan, you can also use other assets you own as collateral. These include personal guarantees, equipment, machinery, gold, etc.

When you get an SME loan by putting up collateral, you can get a higher loan value, lower interest rate, and longer loan tenor compared to if you had no collateral to give to the lender.

What types of SME loans can I get if I own collateral to put up?

If you need an SME loan and own collateral, you can get a secured business loan, a loan against property (LAP), a working capital loan, and even an overdraft facility.

Do I need an SME loan or an overdraft facility?

CreditEnable partners with 25+ lenders in India, and they offer over 100 specialized SME loan products on our technology platform. Each of these products is designed specifically with the needs of an SME in mind, so they are a mix of long-term and short-term loans with varying collateral requirements and interest rates.

Apply for an SME loan with CreditEnable.

What types of SME loans can I get if I don’t have any collateral to put up?

If you don’t own collateral to offer your lender, your best SME loan options are unsecured business loansmachinery loans, and unsecured overdraft facilities.

When you apply for an unsecured business loan, the lender will offer you a low loan value and a shorter repayment period, but a higher interest rate compared to a secured business loan. This is because the lender is greater uncertainty when lending without any collateral. So, by offering you such loan terms, the lender has some guarantee that you will fulfil your loan obligations.

You can also get an unsecured SME loan even if you own collateral. Due to their short loan tenor, these are a good option for SMEs looking to fund a short-term expense, grow their credit history and improve their credit score. By borrowing a small amount for a short duration, you can repay the loan quickly and boost your credit score so that in the future, you qualify for a higher loan amount at better loan terms.

CreditEnable has helped our SME customers get unsecured business loans in 2-3 days, at interest rates starting at 14%.

Apply for an Unsecured SME loan with CreditEnable.

Another SME loan option CreditEnable’s lender partners offer our SME customers is a Machinery Loan. If you’re thinking about buying new machinery or making repairs or upgrades to the machinery you already own, this is the type of loan you should apply for. Often, if you don’t already own machinery, lenders can use the machine you plan to buy using this loan as the collateral for the loan itself. Therefore, you won’t need to put up any additional collateral, and after fulfilling the EMI obligations, you own the machinery.

Apply for a Machinery Loan with CreditEnable.


Property is not the only type of asset lenders are willing to accept as collateral. So, you can get a business loan even if you don’t own property.

Some lenders prefer to only lend to SMEs that own property, even if you’re not using it as loan collateral. This property ownership requirement gives the lender some guarantee that when you run a stable and prospering business. Other lenders will agree to lend to you even if you only rent property.

When applying for SME financing, you must find the right lender who meets your financial requirements, and for whom you fulfil their eligibility criteria. CreditEnable is here to help you with this, so you don’t have to spend time, energy, and money manually comparing hundreds of SME loan products and lenders to find the right ones for you. The award-winning lender-matching algorithm on our technology platform does that for you!

Start your application today.

Business Loans. Enabled Simply.