A business loan comes under the category of unsecured loan; the major benefit of business loans in India is that it does not require any collateral or security to avail the loan and most of the banks sanction business loans with minimal pre-payment charges.
The business loan depends on the annual profit of a business and number of years you are into that business. It also checks the cash flow and other aspects of revenue generation. Once the bank considers all the major factors, it decides the eligibility of loan amount which a business can get.