As a financial provider, we understand the growth aspirations of small and medium businesses and offer loans for most of your business needs. These types of loan are given without the applicant having to provide any collateral for the bank. Unsecured loans are given on the basis of an applicant’s credit score and income. Since there is no collateral, the risk factor is much more for the bank. Hence, the banks charge a higher rate of interest on those loans in comparison with the secured loans.