Q. What are the types of Business Loan?
Secured Business Loan: It means that the entrepreneur has to keep some financial security as a guarantee against the loan amount taken. It can be land or machinery, finished products; anything can be kept as a guarantee in agreement to the lender.
Unsecured Business Loan: In this loan, the entrepreneur has to keep some financial security as collateral to take the loan. The borrower gets unsecured loan at a high rate of interest.